Suburb Due Diligence Checklist Suburb: Local Council: Suburb Attributes Levels Supply & Demand Housing Types The 6 Key Factors To A Suburb Area Demographic frastructure & Convenience Historical & Future Performance
Supply & Demand Levels Task 1 What is the population of 2 How many properties are sold each year in (This information can be obtained from the internet, local real estate agents or from RP Data) 3 Are properties typically sold via? Auction Private Treaty Or both? 4 What is the current auction clearance rate in your suburb? (dicates how robust / resilient your suburb is in the current market) 5 What is the average number of days on the market for properties to be sold? 6 How many real estate agencies are operating in 7 Is vacant land readily available in (If so, this is not a desirable suburb for renovation projects)
Supply & Demand Levels Task 8 What type of property do buyers want in this suburb? (ie: what properties are in short supply / demand?) (Speak to real estate sales agents about this) 9 Are 1 bedroom 10 Are 2 bedroom 11 Are 3 bedroom 12 Are 4 bedroom 13 Are 5 bedroom 14 Are there other types of property in demand? 15 Are there certain types of properties that appear to be in surplus supply?
Supply & Demand Levels Task 16 What are the essential requirements that a property must have in this suburb? (For Example: Houses in some suburbs must have a formal dining room while in other suburbs it s not important. some suburbs, buyers expect a big backyard while in other suburbs a courtyard is preferred. What is the expectation in your suburb?) 17 Are there any major developments planned in the suburb that may affect the supply / demand levels? (Major developments can have an adverse effect on supply levels therefore affecting property values) Housing Types Task 18 What is the percentage of different housing types n Apartments Freestanding houses Semi detached Townhouses / Duplexes Terraces
Housing Types Task 19 Are there other types of residential housing in the suburb? 20 What are the predominant construction types? Double brick Brick veneer Weatherboard Fibro clad Vinyl or plastic clad 21 Construction type is there another predominant construction type in Demographics (Buyer Profile) Task 22 Is there a specific type of buyer in (Obtain this information from conversations with local real estate agents or from suburb demographic reports) 23 Is there a consistent profile of buyers attending the open for inspections? (Eg: families, childless couples, 1st home buyers)
Demographics (Buyer Profile) Task 24 Is there a consistent profile of buyers attending auctions in your suburb? (Eg: families, childless couples, 1st home buyers) 25 What is the typical age range of people in 26 What is the typical household structure in (Eg: couples with children, childless couples, single parents, group households, lone households) 27 What is the typical household ownership type in (ie: owner occupiers, renting or other) 28 What is the typical employment type of buyers in (Eg: management, professionals, blue collar workers, trade, etc) 29 What is the typical income level of buyers within 30 Is the suburb dominated by a certain nationality? 31 Are existing residents & buyers of a certain religious belief?
frastructure & Convenience Task 32 What is the distance to a major CBD? 33 What is the distance to a local hospital? 34 What is the distance to local schools? 35 What is the distance to the local supermarket? 36 What is the distance to a major shopping centre? 37 What is the distance to parks & recreational facilities? 38 What is the distance to the nearest airport? 39 Is the suburb serviced by buses? 40 Is the suburb serviced by a train line? 41 Is the suburb serviced by ferries? 42 Is the suburb a convenient location for freeway access?
Historical Performance Task 43 What is the average capital growth rate for the last: 12 months? % 3 years? % 5 years? % Future Performance Task 44 What are the future capital growth projections in the next: 12 months? % 3 years? % 5 years? % Suburb Attributes Task 45 Is this suburb affected by seasonality factors? 46 Is this suburb reliant on one market? (Eg: tourism, mining, student accommodation, etc) 47 Is there good network coverage in (Ie: mobile phone, adsl / cable, internet, foxtel, free to air tv)
Suburb Attributes Task 48 Is the suburb robust in terms of economic vibrancy of local businesses? (Ie: businesses actively trading, not closing down etc) 49 Are there any public housing impacts in 50 How difficult is the local council in respect to building applications? 51 What is the average number of days for building applications to be approved in the local council? 52 Are there any further reports available on the internet for this suburb? (Just google your suburb name)