20 Jul What is a basic due diligence?
When looking at a basic due diligence you want to take into consideration the Big 5 which is what I refer to when developing a property.
One of the first things to look at when doing a basic due diligence is do you have road access? You need to determine whether you can access the property easily and most of the time you can but depending on what you’re hoping to do, you may also need to know whether you can access the back of the property.
The second and third thing that you want to check is that your dwelling has access to power and that you will have no issues with a power and communication connection. You also want to check the water supply to the property whether that be through town water or tank water and it is just a matter of knowing what your dwelling has or can have.
Next you need to look at sewerage and if this is already connected to the property or whether there is going to be a problem getting this connected or is there going to be a septic tank at the back.
Lastly, you will need to look at Stormwater and this can often be a big problem. You could have a block that you are interested in but when it comes down to the dwellings you may find that you have extra stormwater and with blocks that are on a slope that may mean you now need to get permission from neighbours to access through the back properties to allow to put in an extra pipe to allow for the stormwater to get away.
If you can ensure that you have no issues with these 5 key things, you will then eliminate any future issues and problems and get excited about the contract. Of course when you are looking at a property development opportunity, there are many key factors that you need to look into. Our Getting Started in Property workshop gives you a more in depth look into due diligence and the different stages of developing property. Get in touch with us today to learn more about how we can help you with your first property development.