Buying Checklist

BUYING OFF THE PLAN

MARKET

  • Land purchase price
  • Research population growth
  • Research employment opportunities
  • Research infrastructure spending (public and private)
  • Research recent capital growth, average annual growth

DEVELOPER

  • Pre-purchase feasibility
  • Contact local real estate agents
  • Contact other acquaintances- both industry insiders and outsiders
  • Research developer track record – Google/ASIC
  • Research previous developments – Google
  • Visit previous developments
  • Surveying

DEVELOPMENT

  • Legals
  • Check proposed completion date and sunset clauses
  • Are deposit bonds accepted?
  • Check body corporate fees, depreciation, etc
  • Check number of sales – query with developer as necessary
  • Check valuation against open market
  • Check outlook, aspect of property, fittings, car spaces
  • Check approvals in place (with developer)
  • Check council records for nearby proposals

FINANCE

  • Council rates
  • Confirm borrowing limit
  • Check for government incentives for off-the-plan
  • Apply for deposit (if necessary)
  • Work out budget – including holding/mortgage costs, depreciation, tax rebate
  • Agent’s commission

LEGALS

  • Conveyancing fees (sale)
  • Negotiate incentives (rent guarantees, furniture packages, etc)
  • Seek legal advice over contract
  • When contract finalised, sign and put down deposit/deposit bond
  • Loan interest

PRACTICAL COMPLETION/COMPLETION

  • Contingency amount
  • Ensure 10% buffer in place before completion
  • Apply for finance
  • Check property is as promised – valuation will also do this
  • Seek alternative valuation if comes in low
  • Seek tenants
  • Settlement: get finance; pay deposit (if deposit bond used); tip in remainder if
    valuation low

DEVELOPMENT EXPENSE CHECKLIST

Keep this exhaustive list handy to ensure you anticipate all potential development costs

PURCHASE OF LAND

  • Land purchase price
  • Stamp duty on transfer
  • Stamp duty on first mortgage
  • Finance establishment fee
  • Conveyancing fees (purchase)

CONSULTANT COSTS

  • Pre-purchase feasibility
  • Town planning
  • Working drawings
  • Engineering
  • Soil test
  • Building permit
  • Surveying
  • Legals
  • Project management

CONSTRUCTION COSTS

  • Pre-rental repairs
  • Demolition
  • Construction

LEASING FEES

  • Agent’s commission
  • Advertising

RATES AND TAXES

  • Rates and taxes Council rates
  • Water & sewer
  • Land tax
  • Other rates or taxes

SELLING FEES

  • Agent’s commission
  • Conveyancing fees (sale)

OTHER COSTS

  • Electricity contribution
  • Drainage/sewerage contribution
  • Loan interest
  • Contingency amount

PROPERTY LOCATION CHECKLIST

  • How long will it take to travel to different places (work, CBD, etc) during peak hours?
  • Is the house conveniently located near schools, medical and emergency services?
  • Is there adequate public transport in the area? If so, what type?
  • What other facilities/infrastructure are available locally?
  • Does the area have a preponderance of low, medium or high-density housing?
  • What is the property’s level of privacy?
  • What is the property’s level of security?
  • What are the council’s future plans for the area?
  • What development work is taking place in the area?
  • Are there any flight paths over the property?
  • Is the property located near busy intersections or heavy traffic roads?
  • Did you get an independent valuation?
  • Have you talked to real estate agents about going prices for units/houses in the area?
  • Have you checked the local newspaper for asking property prices?
  • What are the recent sale prices of similar properties in the area?
  • What are the price movements over recent years? Does this represent good growth?
  • Is demand for similar properties in the area weak or strong?
  • What developments are planned for the area? Ask the local council.
  • Talk to the neighbours – does the price seem right?
  • Have you checked median prices and average value growth for the suburb?