We always talk about it, but I'd be interested to know what everyone's method for performing their own due diligence is? Is yours as simple as a spreadsheet comparing costs, expected income and median suburb growth? Do you read state infrastructure briefings?
Personally, my starting point is to calculate all costs foreseeable in a spreadsheet (both purchase costs and ongoing), and I have this spreadsheet to do it for multiple situations and calculate break even costs. I can estimate what income I need to derive from these investments, but that's only the starting point. I never purchase without having driven around the suburb to get a feel for it all, and I generally like to look in suburbs which haven't risen as much as a surrounding suburb.
Interested to hear other people's approach.
Personally, my starting point is to calculate all costs foreseeable in a spreadsheet (both purchase costs and ongoing), and I have this spreadsheet to do it for multiple situations and calculate break even costs. I can estimate what income I need to derive from these investments, but that's only the starting point. I never purchase without having driven around the suburb to get a feel for it all, and I generally like to look in suburbs which haven't risen as much as a surrounding suburb.
Interested to hear other people's approach.
