How do you know a good buy when you see one?

From WikiProperty

Obviously everyone always looks for 'that good buy' where you need the inside story from a real estate agent to know about it. Would you recognise such a good deal, for you, if you saw one?

First of all you need to know what you are looking for. Things to consider are; the type of building (e.g. residential investment, factory, retail shop, office block), location, investment size ($$$), prudent debt levels. You can possibly think of more issues. Get you strategy or vision worked out.

Next you need to do you homework. At http://www.propertyreturns.co.nz/commercial.html you will find a checklist for non-residential investments. At http://www.propertyreturns.co.nz/residential.html you will find a checklist for residential investments. The starting point is these checklists. (If you can think of an item that should be on the checklists (or should be changed) please tell us and we will add/change it.) Part of your homework will be establishing the above checkpoint's values (or answers) and then establishing what you could expect for that building type, location etc. This involves a lot of research if done properly, and the assistance of a valuer , lawyer and other professionals will be critical. This may cost money but it is better to know what you are buying before you buy. Take advice but decide for yourself how much weight to give to the advice. It is easier to pull out or alter a deal before there are any signed contracts. Be prepared to walk away from a deal if it is not right. You are buying for the long term.

What might be a good deal for you might not be for someone else. If it is right for you buy it.

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