Finding the right investment property for you isn’t easy. Before you jump in, make sure that you follow a strict due diligence process. This will help to ensure that your investment strategy stays in-tact.

At a bare minimum, the following checklist items should be carefully considered:

  1. Finance –
    What is your borrowing power and which is the right mortgage for you?
  2. Location –
    Is this property in a place where people want to rent?
  3. Value –
    Is this property available at current market value or less?
  4. Rental return –
    Can you achieve a minimum 4% rental yield?
  5. Infrastructure –
    Are major infrastructure elements such as public transport, schools and recreation facilities nearby? If not, are they planned?
  6. Design and finishes –
    Will the design and finishing of the property meet tenant demand?
  7. Quality and integrity of the developer –
    Check out other projects that the property developer has worked on. Are there any delivery risks?
  8. Correct legal structure –
    Is the legal structure suitable for you, your family and your tax position?

Achieving success in property investment requires you to understand all of these elements and how they work together to create a valuable property investment. On the following pages we will go through these in more detail.