Property Checklist Form

[Sunstone]

Dear guys,

Here is a checklist that I use to evaluate properties.

The numbers I use in the top right hand corner are a useful calculator for working out the 12 month gross rental based on the weekly rate.

From this I use it as my own ready reckoner on evaluating a price I am happy paying based on the yield.

Every state in Australia is happy with different yields so feel free to put in your own figures.

Thought you might find it useful.

Cheers,

Sunstone.

[Jerry Maguire]

thanks SS for sharing with everyone

[prunster]

Thanks Sunstone. That checklist looks like something we could use.

[jasminlei]

I was unable to open the spreadsheet
Is there a program I can download for free??
I have XP home program

jasminlei


Wisdom is meaningless until you experience it !
"When Good isnt Good Enough' forgot the author sorry

[Sunstone]

Dear Jasminlei,

The checklist is done in excel. If you do not have a copy of excel try the following link for a free excel file reader:

http://office.microsoft.com/downloads/2000/xlviewer.aspx

Cheers,

Sunstone.

[geoffw]

Just to get a rough (very) version of this, here's an jpg version- which should be readable.

(the original attachment was zip. Maybe you can read Excel but not zip compressed files. But try this one).

I tried saving it as rtf or Word but the forum would not allow me to upload these. From Excel 2000, saving it as HTML gives me a huge file which is heavily customised to Internet exploere. But I can try that if it helps.

/forums/photopost/data/506/21checklist.jpg

[ EDIT: moved image to photo gallery and replaced with image link - Sim' ]

[Nicholas H]

here it is as a pdf, you get acrobat reader free off the net.

[Sunstone]

Dear guys,

Have done a couple of updates to my checklist.

Please find it attached.

Cheers,

Sunstone.

[Jacque]

You spoil us Sunstone. Really, you do. Thankyou :) for being so generous.

[tammyl]

Thank you for the download it will be very handy to sort out different properties.

[Kevmeister]

Thanks Sunstone. Duly saved.

I think one of the Anita Bell property investment books has a good checklist in it.

*Personally* I think I would like (but remembering that ultimately the proof is in the pudding) a score-based appraisal.

In theory if my scoring technique is appropriate (and simple enough) two similar properties are compared absolutely on the scores they receive.

Don't know if I'm dreaming, however.

[Sunstone]

Dear Jacques and Tammy,

Thankyou for your kind words.

Kev,

Best not to mention Anita Bell as you know my opinions of her in the Anita Bell thread.

With modifying the checklist for yourself feel free as certain parts may be more important for your area and your strategy. Eg. Insulation and central heating may be more important for certain Melbourne properties.

I use this list on a weekly basis and this is a practical, working document, not just theory. A points system I believe is not practical and would bog the investor down in too much red-tape.

Cheers,

Sunstone.

P.S. Appreciate your thanks but the real proof in the pudding is when you use it to get your first IP. Keep us updated.

[Kevmeister]

Hi Sunstone,

Point taken :-) and there was no criticism intended...

I too disliked the Anita Bell books sufficiently that I didn't actually read through the whole thing, but I still think her check-list was a good starting point. Practical? No idea yet.

As for my "points-based scoring system", the idea was hypothetical.

[hrichmond]

Dear Sunstone,

Please could you enlighten me on the numbers on the top right hand side of your calulator and what they mean and how I use them.

Sorry still learning this investment game.

Thanks
H:) :confused:

[Sunstone]

Dear Hayden,

Please could you enlighten me on the numbers on the top right hand side of your calulator and what they mean and how I use them.

When you are looking at properties you may have a specific rental yield as one of the criteria for purchasing. The figure on the left could be the weekly rental amount with the figure on the right the yearly gross rental yield.

Working out a percentage is often quicker with a reckoner than having the multiply it out every time especially when you are out on the road looking at properties.

Eg.

Rentals:

(For a 10% gross yield or multiple thereof.)

Rent/week; Yearly Amount; Property Price;

150 7,800 78,000
160 8,320 83,200
170 8,840 88,400
180 9,360 93,600
190 9,880 98,800
200 10,400 104,000
210 10,920 109,200
220 11,440 114,400
230 11,960 119,600
240 12,480 124,800
250 13,000 130,000

(So just add a zero onto the yearly rental amount for the value.)


(For a 5% gross yield or multiple thereof.)

Rent/week; Yearly Amount; Property Price;

150 7,800 156,000
160 8,320 166,400
170 8,840 176,800
180 9,360 187,200
190 9,880 197,600
200 10,400 208,000
210 10,920 218,400
220 11,440 228,800
230 11,960 239,200
240 12,480 249,600
250 13,000 260,000

(So just add a zero and double the yearly amount for the value.)


As I said you need to fine tune this to your prices, what your own rental yield criteria is and what can actually fit onto the page. However the concept is the same.

Let us know how you go.

Cheers,

Sunstone.

[Sunstone]

Dear guys,

Have done a couple of updates to my checklist for 2004.

File is attached.

Cheers,

Sunstone.

[Jakk]

Dear Sunstone,

Thanks Mate, Great checklist, just added one section:

Smoke Detectors Y/N Battery/Wired In

as these are mandatory in Victoria and I would have thought possibly other states as well.

and better yet, I intend to fax to agents to fill in and get it faxed back prior to inspection, that way I can sit at my desk and ascertain what work might need to be undertaken so that I can be prepared at inspection time.

Hopefully they will also fill in the sections, what vendor will take and time on market.

Thanks again Sunstone

Regards

[Spiderman]

Sunstone - you did well to get yours down to one page!

Mine took two pages. I mostly adapted it from Anita Bell's book and put in a rough valuation calculator based on rentals and a yield near 10%. And as Jakk said, I should also mention the smoke alarm!

It's attached. Hope it comes out OK.

Regards, Peter

[Sunstone]

Dear Jakk,

Thanks for the compliments and the constructive input. Recently a lot of discussion about smoke detectors in QLD has focussed on boarding houses.

http://www.dlgp.qld.gov.au/docs/building_codes/building_fire_safety/residential_leg/edition_2_v1.pdf

http://www.dlgp.qld.gov.au/Default.aspx?id=36

Again something that I have overlooked to date and even if it is not a legal requirement for existing detached dwellings in QLD I think it is certainly something to look into.

Have incorporated this into a minor update as attached.



Dear Spiderman,

Regarding Anita Bell I have met her and hence have strong views. She is more interested in being a romance novelist than a serious property investor.

http://www.somersoft.com/forums/showthread.php?postid=31208#post31208

With your checklist the most important thing is that it is a tool that you are practically using to buy properties. Ensure that and your document will continue to improve.

Cheers,

Sunstone.

[TomL]

I use something similar.

[Sunstone]

Dear guys,

Have done a few updates to my checklist for 2005. File is attached.

Cheers,

Sunstone.

[ArJay]

Thanks Sunstone.

Very useful.... tremendously appreciated. Your input to the forum (from what I have gathered so far) always seems to be of great value, so cheers again.

ArJay :)

[Sunstone]

Dear ArJay,

Thanks for the kind words. :)

Cheers,

Sunstone.

[muppie]

Sunstone, I am looking for my 1st property and I came across this thread. This is brilliant as I have been jotting down some of these details myself but probably only 1% of what you've got here. I have wondered "what to ask" and this certainly covers the essentials 'must know' things.

I am going to be using this from now on :D :D :D

Just a stupid question:

What are these
150 ; 7,800 190 ; 9,880 230 ; 11,960
160 ; 8,320 200 ; 10,400 240 ; 12,480
170 ; 8,840 210 ; 10,920 250 ; 13,000
180 ; 9,360 220 ; 11,440 260 ; 13,520

[dtraeger2k]

Hi Muppie,

They are year rental amounts. Eg 150/w x 52 weeks = $7800 a year. I'd say he just has them there as reference so he can quickly determine / compare yields.

[pete_w]

Sunstone - you did well to get yours down to one page!

Mine took two pages. I mostly adapted it from Anita Bell's book and put in a rough valuation calculator based on rentals and a yield near 10%. And as Jakk said, I should also mention the smoke alarm!

It's attached. Hope it comes out OK.

Regards, Peter

thanks for these lists guys.

"Run pen along bricks"

what is this?

[muppie]

to see how fragile / weak the bricks are?
Just be careful not to cause the house to collapse while you're there.

[pete_w]

what would be a sign? obviously if huge chunks came out youd be a little concerned, but how do you tell a good brick from a bad one?

[Cosmo]

Hi,

Running your pen down the mortar line judges how good the mortar is. Houses constructed during the war years had a shortage of lime in the mortar. This causes the mortar to turn to sand over time.
If it’s bad you can almost pull bricks out of their locations!