We’ve all heard the house-buying horror stories; finding asbestos, defects to the structure of a new home, or a new high-density development going in next door.
Before you buy any kind of property, it’s crucial you conduct your property due diligence and find out all the necessary property information. Cutting corners or being pressured to buy before you’re ready could mean missing crucial issues with your new property which could seriously affect its value.
If you’re looking for an investment property, your approach will be very different from an owner/occupier scenario. Investors looking to buy should be assessing a property’s potential against multiple buyer types. The ideal property should have multiple uses in order to maximise potential rental return and re-sale value.
Before you begin looking at a property, it’s important to review the immediate suburb and locale that your property is situated in, assessing transport infrastructure, local schools, amenities, and the general neighbourhood. You’ll need to assess not just the property you’re buying, but all properties within proximity. For instance, consider:
- Will there be much development in the surrounding area which may affect the value of the property?
- Will you be able to sell the property quickly in future?
- Have you compared it to similar properties in the area, and if so, is it priced appropriately?
Once you’re confident you understand the area you’re buying in, it’s time to assess your property in detail and gather all appropriate property information.
Luckily, Landchecker can be used to gather much of the property information you will need, including specifics on zoning regulations, planning permits and other pertinent property information.
Here is a checklist of the key information you’ll need to accurately assess your property:
It’s important to understand the zoning within and around the property you’re looking to purchase, in order to fully understand the property’s uses. Leadchecker has an interactive map, which allows you to learn what each planning zone is and how that may impact the property.
Zoning may restrict what type of dwelling can build on vacant land and how you can alter or develop the land or buildings over time. There may be zoning regulations which specify restrictions on design, such as bushfire safety precautions, height restrictions, or other design guidelines.
Landchecker can also show you whether or not there are proposed or issued planning permits for properties close by. Significant developments in the area you’re looking to buy in can change the face and character of the area.
You can also check whether or not there have been planning permits approved or denied for the property in the past, which could give you an indication of whether or not the same permits may be approved in future. If you’re looking to extend, renovate, or re-build, planning permits could be a major sticking point when purchasing.
The heritage overlay tool in Landchecker is extremely useful. It will show you all the heritage properties in the area.
There are different types of heritage properties which have different rules and regulations surrounding them. Buying within a heritage area can be a positive factor as it means that the area may be protected, and therefore unlikely to change drastically in the future. If the property is well maintained, it will only grow in value over time.
However, heritage status can also mean it can be more difficult to conduct renovations or extensions, and will likely make getting permission for a knockdown and rebuild more difficult. The cost of renovating heritage property is generally higher due to the specialist care needed.
Landchecker uses up-to-date information to enable you to quickly check flooding and erosion risks for a property or area. Certain areas in Victoria are much more flood-prone than others. Flooding can occur due to a variety of sources, like over-flooding rivers and seas, however, water can also rise up from beneath the ground. There may even be poor irrigation and drainage in a particular suburb which can cause excess water in heavy rains.
Either way, flooding can leave your property at risk of significant damage. Homes at flood risk may face higher insurance costs, so it’s important to be informed when buying.
If you have already researched areas to purchase property in, you may have a strong understanding of the crime statistics within that area.
If you do find that you are purchasing property in an area that is more prone to crime, you may also need to incorporate the cost of additional security measures within the property into your purchase price, such as additional locks, or security cameras to ensure your tenants feel secure.
Landcheckers burglary statistics can help you easily identify if the area you are looking in is above or below average.
Rental yield is the return an investor is likely to see from a property through rent. This figure should be calculated by incorporating the long-term likelihood of the property to increase in value and in rental return. Your ability as an investor to calculate rental yields is crucial when buying an investment property.
Factors such as natural disasters like floods or bushfires as well as burglaries can cause property damage. Disruptions to rental income such as lease changes can also impact your rental income. Older properties may also impact your rental yield if they require frequent repairs.
Understanding rental yields means having the full picture in regards to a property and incorporating any contingencies into the calculations of your rental income. Landchecker can provide you with the necessary tools you need to conduct your property due diligence and empower you to make informed decisions when it comes to purchasing new property.
Requesting a building inspection report can give investors invaluable information about a property’s state. Detailed property information in a building report can identify:
- Safety hazards and major defects
- Any damage that has been caused by termites & other pests
- Identify potential asbestos issues
Make sure you have all the property information you need to avoid these common property pitfalls. Purchase a premium property report. www.landchecker.com.au