Join Australia's most dynamic and respected property investment community

Hypothetical Due Diligence

Discussion in 'General Property Chat' started by Leo2413, 5th Apr, 2016.

  1. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,812
    Location:
    Sydney
    Just a bit of fun really as this will never happen but:

    If you were only allowed to know 3 things before making up your mind for an IP, assuming you know what state it is in, what three things would you want to know before making a decision.



    For me it would be:

    1. Where in the property clock is the state at,
    2. How far is the property located from the CBD and
    3. What are the prices of similar stock that sold recently nearby.

    Anyone else want to give their top 3 from hundreds available.
     
    Last edited: 5th Apr, 2016
    MTR and Birdseed like this.
  2. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    4,932
    Location:
    Sydney
    This sounds very sound but instead of where the state is at, I'd say where in the property clock that city is at. (And... I'd look more at the cities because they are generally growing more than regional).

    Note: whilst I just said city, Wollongong and Newcastle I wouldn't rule out. Big enough and broad enough economy wise.
     
    Leo2413 likes this.
  3. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    4,932
    Location:
    Sydney
    Hmmm.. what are the drivers of growth in the area, what is the future outlook like in the area?
    What is the local economy doing
    What's the vacancy rate?
     
    Last edited: 5th Apr, 2016
  4. sanj

    sanj Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,148
    Location:
    Perth
    1) what else could I be doing with my capital or servicability

    2) is there any value add potential down the track, assuming as you said this is an IP and not a devvy site, I personally don't like scenarios where there's no plan b or c and you're at the mercy of the market because I'm naturally impatient with these things

    3) would prob be where I feel the market is going (ie your property clock question)
     
    Leo2413 and MTR like this.
  5. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,568
    Location:
    Melbourne, Australia
    I would also add to trains (huge fan of them for IPs).

    Also I would swap 1 and 3 around if it was going by actual order of preference.
     
    Leo2413 likes this.
  6. Cactus

    Cactus Well-Known Member

    Joined:
    18th Jan, 2016
    Posts:
    994
    Location:
    Melbourne
    1. Price & Terms
    2. Value (I note @Leo2413 your three items helped establish value)
    3. Value add potential
     
    Leo2413 likes this.
  7. Leo2413

    Leo2413 Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    5,812
    Location:
    Sydney
    I like your 1. I wasn't thinking of value add potential just ip to hold but might as well allow value add as one.
     
  8. dabbler

    dabbler Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,708
    Location:
    Sid en e - olympic city
    Making sure what I am buying is what is represented (building and or block size/location/easements etc)

    is it in an area of growing demand and population

    is vendor up for a quick sale at under market value

    (CBD - may want to know which one, that could be messy if it turns out to be a regional.....lol ....5 mins/ks to Moree CBD )
     
  9. datto

    datto Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    1,394
    Location:
    Mt Druuiitt
    1. Which side of Luxford Ave the property is located (prefer NE but that's just me)

    Options 2 and 3 are irrelevant.
     
  10. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

    Joined:
    18th Jun, 2015
    Posts:
    1,516
    Location:
    Sydney
    I find it difficult to answer as there are too many obvious things not even worth mentioning due to being common knowledge.
    Now if the question were what 3 things would you consider most if investing in another country, that would really get the thoughts going, as there are so many more unknown factors involved to consider.
    It could still be very relevant to the aim of this thread.