How do you do due dilligence

[theros]

Hi Everyone,

In a lot of threads I read the term "due dillgence" mentioned a lot but no real clear explanation of what this is and how to do it.

Anyone keen to elaborate and what due diligence is to them and the resources they use to get the information ?

 

[A'PEXi]

I'm sure there will be plenty of threads available if you do a search but in general, doing your research on the area/property and whether or not you think it is suitable for what you are trying to achieve with your investment. There are plenty of resources available such as speaking to REA's, online forums such as this one, magazines, real estate websites. etc.

 

[westminster]

The due diligence you do depends on your strategy.

It would include some of the following
- the area you are looking at:
- future plans by govt/council/private enterprise
- past sales
- rental returns
- council restrictions
- past growth of the suburb

- costs of renovating/building/additions
- ability to value add via renovating/building/additions

For a particular property
- vendor motivation for selling
- are any additions legal/council approved
- local council rates cost
- insurance costs (in flood prone areas this can be vvvvv high)
- body corporate fees if appropriate
- rental appraisal

 

[Blikkies]

Hi Everyone,

In a lot of threads I read the term "due dillgence" mentioned a lot but no real clear explanation of what this is and how to do it.

Anyone keen to elaborate and what due diligence is to them and the resources they use to get the information ?

Mate read "Due Diligence Made Simple" by Hans Jakobi that explains it to the point, I read that and its got really good info .

Cheers

 

[Colin Rice]

Blikkies nailed it.

Love the signature quote BTW

"If you will do for 3 years what most people WON'T do, you can do for the rest of your life what most people CAN'T do ..........."