In Episode 38 of this bonus series of the Property Investing Journey, Mike gets into the detail of the all-important due diligence process with Bobby Haeri, Managing Director of The Investors Agency and Sydney Strata Gardens.
As an expert property investor and buyer’s agent, Bobby is well placed to talk through the nuances of due diligence. By the age of thirty he had replaced his income through property investment and establishing his own business. In this conversation, Bobby delves into the detail of what to look for in a property before signing on the dotted line.
The term “due diligence” may sound highly technical but it’s really just the series of steps a prudent investor would undertake to ensure they know what they’re getting in their investment. Bobby and Mike walk through some of the more pertinent steps, starting with the personal attributes of the buyer.
Bobby believes a buyer needs to consider their own goals before seeking out a particular property. They need to think about their risk profile, their appetite for regional locations, and also what they hope to achieve from the investment. With that in mind, they can then turn their attention to specific markets and properties.
Bobby and Mike highlight specific examples of factors to consider when looking for a property. These range from the topography of the area, including bush fire zones and flood plains, through to the demographics of the suburb and surrounding areas. Bobby also provides clear advice on talking to Council and who you need in your team.
This twenty minute podcast is jam-packed with practical tips and guidance that is sure to resonate with even the most astute investor. This conversation is one you won’t want to miss.
Here at MCG, we are passionate about creating a forum and education series for property owners and investors. We do depreciation differently, and offer a set rate for Replacement Cost Estimate reports. A first in the industry. Join our clients saving more on their tax today https://www.mcgqs.com.au/
Mike gets into the detail of the all-important due diligence process with Bobby Haeri, Managing Director of The Investors Agency and Sydney Strata Gardens. The term “due diligence” may sound highly technical but it’s really just the series of steps a prudent investor would undertake to ensure they know what they’re getting in their investment. Bobby and Mike walk through some of the more pertinent steps, starting with the personal attributes of the buyer.
What we cover in this episode
- Starting with personal due diligence
- Looking at the macro level
- Understanding what the buyer is trying to achieve
- Accounting for rising interest rates
- The key attributes to look for once you’ve identified a market
- What to look at when you’re valuing a property
- Deal breakers that might cause you to walk away from due diligence
- Questions to be asking Council
- Who does what in due diligence
- Bobby’s top tips for what to look for in due diligence
“With due diligence there’s an array of things you have to look into and as a buyer the first thing you want to look into is do some due diligence on a personal level, like what’s your risk profile, are you comfortable buying in a regional market or a metro market?” Bobby 1:46
“What you do when you’ve selected the market you want to make sure you’re buying the right pockets within that market” Bobby 5:38
“Easements is a big one, you want to make sure the property doesn’t have an easement. Easements on boundary lines are not uncommon but you still need to be mindful whether they are there, whether they are not“ Bobby 6:11
“It’s a matter of understanding what the market value is, not what agents are listing.“ Bobby 7:26
“Generally speaking the higher percentage of owner-occupiers within as area, the higher the demographic, there’ll be less supply of rentals, which puts investors in a great position to charge the rent that they want. “ Bobby 17:03
Enjoying the Show? Let us know!
Are you a fan of The Geared for Growth podcast? If the ideas and tips we share in each episode are inspiring you to become a more knowledgeable property investor, subscribe to the show and leave your honest review to let us know!