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Due Diligence
Each development has its own research requirements. Beware the curse of knowledge, as excess focus in one area can blind us to other equally important aspects. As a basic minimum, here are some of the considerations that we explore, before even sharing any projects:-
BUILDER DUE DILIGENCE
InvestorGroup typically works with the developer to secure Local Area Research including; suburb, infrastructure, amenities & council plans.
~ Estate Developer Analysis of Estate plans (if in a masterplanned development estate)
~ Build Quality Analysis of builder home designs, scrutinise schedule of finishes, establish achievable completion times
~ Beyond extensive comparative market analysis (CMA) often as part of a negotiation, we will Pre-negotiate pricing and special offers for InvestorGroup investors
INVESTOR ESSENTIALS
We aim to achieve an average Capital Growth Target to double every 10 years (targeted annual growth average - 7.2% compound growth min.)
Rental Return - Target Average - Minimum 5% p.a.
Depreciation - Maximized Depreciation reports are organized for InvestorGroup investors
Vacancy Rate in the Area - 0 - 3.0%
Property Management - InvestorGroup will always recommend an experienced local property manager. (If required).
PROJECT FUNDAMENTALS
Where city driven, the location should benefit from:-
~ Within 10-20 km of a CBD (can vary slightly depending on the city)
~ Amenities Close to shopping, schools, recreational activities, pool, parks, playgrounds
~ Employment Convenient proximity to local employment centres and within a 30 minute drive of a CBD
~ Transport Within a 10 minute drive to public transport (car convenience is a priority)
~ Security All properties need to be secure as well as in "safe" areas.
~ Parking Very important. Single LUG (lock up garage)
~ Tenant Profile Singles and couples, plus families with maximum 1-2 children
KEY GROWTH DRIVERS
Key Growth Drivers
("X" Factors) Are there any unique additional "value" being added to an area such as:-
~ Designated Urban Renewal Area
~ Public or private investment planned
~ Proximity to water / beach / parkland / views
~ New Road Infrastructure to be constructed
~ Close to major existing / proposed Shopping Centre