Property Due Diligence Checklist

Transcription

1 MODULE 4 Property Due Diligence PROPERTY SUCCESS.COM.AU

2 Introduction The Property Due Diligence is the final step in the property inspection process. This checklist is designed to assist you to research every aspect of the property thoroughly prior to purchase. STEP 1 PROPERTY INSPECTION CHECKLIST An initial inspection of the property. STEP 2 PROPERTY APPRAISAL CHECKLIST A complete appraisal of the property s current and future renovated value. STEP 3 PROPERTY EVALUATION CHECKLIST A complete costing of the property. STEP 4 PROPERTY DUE DILIGENCE CHECKLIST A complete property due dilligence, including council and legal checks. 2

3 Inspection date: Property address: Median property Does the property represent a median property for the area? Can you secure the property below the median price for the area? Is the block size typical for the area? Other comments 3

4 Council and online research Google the property address. What is the zoning of the property (ie, is it residential)? is the property within a zoning overlay such as heritage environmental, flooding or special building conditions? What building conditions is the property subject to? (Are there setback requirements or height restrictions? Are there rules on how far forward or back the house can be on the block - often called a buildingline zone - or what percentage of the land the dwelling itself can occupy.) Does the property have easements? Contact or visit the Council to do a historical search on the property (just say you are the incoming buyer) Check past building permits or development approvals on the property. Check for any proposed future developments such as infrastrcuture or zoning changes that may affect the property. 4

5 Demographics What is the ratio of owner occupiers/renters in the street? What occupations are present in the street? What is their level of income? How do they get to work? Where do their kids go to school? How do they get to school? What is the distance to good schools? What is the accessibility to parks and recreational grounds? What is the distance to facilities ie, hospitals or shopping centres? What is the distance to centres of employment? What is the accessibility to transport links? What is the accessibility to freeways? 5

6 Solicitor and conveyancer checks Perform a title search Who owns the property? Is it an individual or a company? Are all the building works compliant? Are there any covenants? Are there any easements? Are there any other restrictions on the property? 6

7 Disclaimer The information in these courses are based on the personal opinions and own personal experience of property investing by Jane Slack-Smith. Jane is not a real estate agent, financial planner, lawyer or accountant. All information provided by Your Property Success Pty Ltd is not intended to be specific to your circumstances rather one of many tools to assist you with your quest for information so that you can work with your own professionals to build your own investing strategy. After you have finished your own research the decision is yours how you want to invest and if indeed you do want to. Any information provided is not meant as investment advice. Jane Slack-Smith and her associated companies including Your Property Success Pty Ltd are no way liable for any loss, damage or misunderstanding caused by mis-management of any information provided or inferred. During the education process Jane Slack-Smith will introduce other companies and website and information to you which she is not associated with, these companies are providers of services and information. You need to do your own research and investigation of the information and services they provide Jane Slack-Smith and her associated companies including Your Property Success Pty Ltd are no way liable for any loss, damage or misunderstanding caused by mis-management of any information provided or inferred by those companies affiliated or referred to in the course material or associated website. 7