Why it pays to do your due diligence when investing in property
DHA now offers a range of ways that investors can buy one of our properties, but because you’re committing to a property before you inspect it, it’s critical to do your due diligence first so you know what to expect if you secure the property.
If you’re planning to buy a DHA investment property, there are a few steps you can take to ensure the deal goes smoothly. It’ll also mean you end up with an investment property that suits your financial goals, needs and aspirations.
Step 1: Understand what the potential property has to offer
The first step is to research the property you’re interested in. All DHA ballot and buy now properties appear on our website, which is a valuable source of information for a would-be investor.
The website shows detailed pictures, floorplans, inclusions and general property information. It also includes key financial information and estimated outgoings, to help you understand yields and price versus return on investment.
You should also do due diligence on the property’s characteristics, such as whether it’s a corner block or has street-frontage. Ask yourself whether the property fits your investment needs – and be honest about your requirements.
Step 2: Confirm the suitability of the location
The second step is to check whether the location matches your investment criteria. Is it close to schools, shops and other amenities? Is the CBD or transport nearby, and have you checked out the surrounding properties, as well as the suburb’s demographic profile and appeal? Google Street View and Google Maps are your friends here, helping you get a good understanding of the property before you proceed.
Step 3: Understand the associated costs
It's important to have a full understanding of the costs involved that might be on top of the purchase price. There will be stamp duty (which varies in each state), insurance, legal fees, possibly land tax, as well as strata/body corporate fees in the case of an apartment or townhouse. Understanding the total cost will provide insight into whether you can afford the property.
Step 4: Discuss plans with experts and family
Finally, it pays to discuss your interest in a DHA investment property with family, financial advisors and anyone else who might have a vested interest in the purchase. You’ll also need to speak to your broker or your financial institution about financing, before you enter the ballot or proceed with an offer.
Investing with DHA is just like any other investment: you need to do your research and gain an impartial view of the investment and whether it fits your financial goals and investment criteria.
For more information about what you need to do before you invest, visit our website to help you get started.