1. Understand the short-term economic outlook for the place of investment, and more importantly the medium to longer-term outlook .
2. Profile of the market sector you are investing in: understand its history, the trends that are occurring and the outlook for that particular property sector.
3. Invest the time to survey all of the opportunities. It is usually a risk to "Jump In".
4. Investigate changes to major infrastructure (eg: by-pass roads) impact on the property .
5. Have regard to the property market cycle and where the market sector you are investing in sits within that cycle. Understand "Supply" and "Demand".
6. Always analyse the income from the property.
7. What is the market rent ?
8. How functional is the building:- Would it suit a variety of users? Is it obsolete?
9. What is the demand for this style of accommodation?
10. "What If" analysis:- What if the tenant left? etc.
11. What is the occupancy rate for that style of property?
12. What is the cost of ownership ? Rates, Insurance, Land Tax, Body Corporate Fees, Maintenance, Management etc. There are many different costs for the different property types. A residential unit is different to a holiday unit that is subject to a letting agreement is different to an industrial warehouse is different to a shopping centre etc.
13. What is the town planning designation and the "use rights" that flow from that designation?
14. Is there an ability to "value add " to the property? Face lift, refurbishment etc.
15. How do you maximise your tax benefits ? Depreciation allowances , Negative gearing etc.
16. What is the real value of the property and how is this value made up? Understand the impact of rentals that are above or below market impact on the value of an investment or how depreciation allowances on bricks and mortar or furniture affects the value of a property.
17. What is the property's location like for its current and potential uses? This question, probably the most important of them all, should be answered as part of the above process.
18. Residential - proximity to workplace, transport, schools, child care, shopping facilities?
19. Commercial - proximity to other similar users is often good? Proximity to the market for that product or transport route.

ALWAYS REMEMBER THAT IN ALMOST ALL INSTANCES

"PROFITS ARE MADE AT THE TIME OF PURCHASE"

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