Here is a guideline of things to look for when buying a residential investment. If you feel it can be improved in any
way please email us.
This is not an exhaustive list but it should help you establish the quality of the investment. It is in your interest
to always confirm everything with your professional advisers. This checklist is of a general nature and there is no
guarantee that this list is correct for you.
| Legal / Price |
| Title |
Ensure the boundaries are clearly marked and physically inspect them. Ensure no future restrictions due to cross
leasing etc |
| Price |
How negotiable is owner likely to be? |
| LIM Report |
Check if any building alterations have a permit if there are any major drainage or roading changes planned
in the area. |
| Rent |
|
| Previous Rent |
|
| Land Rent |
|
| Comparable Building Rents |
|
| Comparable Land Rents |
|
| Yield – Reasonable for risk? |
|
| Is there stamp duty/gst to pay? |
|
| Price of neighbouring properties |
|
| Government Valuation |
|
| Other valuations |
|
| Insured amount |
|
| Outgoings (what owner pays if empty) |
|
| Rates |
|
| Insurance |
|
| Body corporate fees/service costs |
|
| Ground lease |
|
| Other |
|
| Building |
| Quality and condition of building |
buy the building, not the current tenant |
| Area of building |
|
| Land area |
|
| Zoning |
|
| Road access / exposure |
is this important for the possible types of
tenants that would be attracted to this building. |
| Parking |
ensure number of car parks is enough for zoning
requirements for any possible tenant. |
| Lease |
| Standard lease |
|
| Changes to standard lease |
|
| When did lease with tenant start |
|
| Length of lease |
|
| Rent reviews |
|
| Rent review formula |
|
| Personal guarantees |
|
| Who pays body corporate/Service Costs |
|
| Who pays interior maintenance |
|
| Who pays exterior maintenance |
|
| Who pays water rates |
|
| Tenant |
| Name / Address |
|
| Business details |
|
| Review financial accounts |
|
| Speak to tenant – happy with lease / property? |
|
| Check guarantors’ security (house, title on house etc) |
|
| Credit check tenant |
|
| Length of time in current property |
|
