Have you ever heard the saying “you need to inspect 100 properties before you find the right one”?
In today’s article we’re going to show you how to dramatically speed up and improve the way you look for and inspect investment properties.
Where also going to show you how to inspect properties more effectively so you can reduce the time you spend at each property inspection.
What research should I be doing on a suburb before I inspect a property?
The number one mistake I see investors making is spending countless hours inspecting properties in suburbs that dont fit their investment criteria.
Its important to do the following preliminary research on any suburb you’re considering buying in before you go out and inspect a single property.
- Distance to major city
- Average annual price growth
- Price growth over the last 3 years
- Average price growth over the last 12 months
- Predicted price growth over the next 5 years
- Predicted price growth over the next 8 years
- Medium house price
- Medium rent
- Average rental yield
- Rental vacancy rate
- Number of houses sold in the last 12 months
- Average number of days on market
- Average vendor discounting
- Supply and demand (according to realestate.com)
- How do the locals rate the suburb as a place to live
- Number of schools
- Major shopping centres
- Public transport options
After you’ve done your research on an area its vital to have a systematic approach to inspecting properties which will save you time and help focus your attention.
- How Many Weeks Has This Property Been On The Market?
- Have You Received Any Written Offers?
- Have You Done A Title Search? Was It All Good?
- What’s Been The Feedback From The Market To Date?
- Why Are The Owners Selling This Property?
- Is There Anything Outside Of Price That Would Make Our Offer More Attractive To Your Vendor?
- Is There Anything Else We Need To Know About This Property?
- If We Were To Submit A Written Offer Today What Price Would Buy The Property?
Please note some of this will be done while you’re in the street, while other parts will need to be done on a computer.
- Distance To High School/s?
- Distance To Primary School/s?
- Distance To Train Station/s?
- Distance To Bus Stop/s?
- Distance To Local Shopping Centre?
- Distance To Major Shopping Centre?
- Distance To CBD?
- Distance To Beach?
- Is The House On A Main Road?
- Is The House On A Train Line?
- Is The House Under Power Lines?
- Is The House Directly Opposite A Park?
- How Many Houses In The Street Are Renovated (%)?
- Are Houses In The Street Are Well Maintained?
- Is There Any Housing Commission In The Street?
- Would You Live In This Street?
- What Price Have Other Similar Houses In The Street / Suburb Sold For In The Last 12 Months?
- How Big Is The Land?
- What Is The Shape Of The Land?
- What Is The Zoning Of The Land?
- How Old Is The House?
- Has The House Been Renovated?
- Single Story / Double Story?
- Raised / Slab On Ground?
- What Is The Outside Of The House Made Of? (Brick / Rendered / Cladding / Fibro)
- Are There Any Obvious Structural Issues?
- Is There Any Cracking In The Brick Work? (>5mm)
- Are There Any Obvious Drainage Issues?
- Are There Any Easements Over The Property?
- Number Of Garages?
- Condition Of Driveway? (Poor, Average, Good, Excellent)
- Condition Of Carport?
- Condition Of Garden?
- Condition Of Brick, Render, Cladding?
- Condition Of Roof?
- Condition Of Gutters, Down Pipes?
- Condition Of Plumbing?
- Condition Of Windows?
- Condition Of Stumps (Under House)? (Cracking, Ant Caps, Leaning)
- Condition Of Floor Boards (Under House)?
- Condition Of Paint (Outside House)?
- Condition Of Steps?
- Are There Any Visible Termites? (Wood On Ground, In Trees)
- Age Of Meter Box?
- Age Of Hot Water Heater?
- Is There Room For Further Development?
- What Could You Do To Cosmetically Renovate The Outside Of This House?
- Number Of Bedrooms?
- Number Of Bathrooms?
- Does The Floor Plan Work?
- Is The Floor Plan Open Plan?
- Could You Open Up The Floor Plan?
- Condition Of Kitchen?
- Age Of Kitchen?
- Condition Of Bathroom/s?
- Age Of Bathroom?
- Condition Of Laundry?
- Condition Of Timber, Tiles, Carpet?
- Condition Of Walls & Roof?
- Condition Of Paint (Inside House)?
- Is There Any Asbestos In The Property?
- Does The House Have An Air Conditioner?
- Age Of Air Conditioner?
- How Big Are The Bedrooms? (2.7mx3m)
- Do The Bedrooms Have Built In Robes?
- Do The Bedrooms Have Ceiling Fans?
- What Could You Do To Cosmetically Renovate The Inside Of This House?
- Could You Easily Add An Additional Bedroom Or Bathroom To This House?
- Could You Change The Floor Plan To Add A Secondary Dwelling?
Need a professional property inspection done fast? Learn how we can help you here.
5. And finally the real questions…..
- Should We Put An Offer In On This Property?
- What Should The Offer Be?
- Have You Asked For A Copy Of The Written Contract?
- Are We Competing With Any Other Written Offers At This Stage?
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