A rigorous due diligence process is the difference between a sound investment and a costly mistake. Here’s the complete checklist our team uses before any opportunity is presented to investors.
Why due diligence cannot be rushed
In a competitive market there’s always pressure to move quickly. But signing a contract without completing proper due diligence is one of the most expensive mistakes an investor can make. A few extra days of research can save years of underperformance.
The Vision Property Advisors due diligence checklist
- Location fundamentals: Vacancy rates, rental yields, population trends and infrastructure investment in the suburb
- Comparable sales: Review recent comparable sales to validate the purchase price
- Rental appraisal: Obtain a written rental appraisal from a local property manager
- Contract review: Have a solicitor or conveyancer review the contract before signing
- Building and pest inspection: Engage a qualified inspector
- Council zoning: Confirm permitted uses and any development overlays
- Body corporate (if applicable): Review minutes, levies and maintenance fund balance
- Finance pre-approval: Confirm lending before signing
- Title search: Check for easements, caveats or restrictions on the title
- Insurance: Confirm landlord and building insurance can be obtained before settlement
Remember: Verbal assurances from a sales agent are not due diligence. Everything material should be confirmed in writing before you sign anything.
Red flags to watch for
- Projected yields that seem unusually high compared to comparables
- Pressure to sign quickly or “you’ll miss out” urgency tactics
- Reluctance to provide documentation (rental history, outgoing costs, body corporate records)
- Discrepancies between what’s marketed and what’s in the contract