What does due diligence mean? A simple guide and checklist
A due diligence checklist is a simple guide to help you make an informed decision when embarking on the homebuyer journey. We’ve compiled some important considerations to keep in mind so you can purchase your first home with confidence.
Purchasing your very first home can be an incredibly exciting experience. Before you start window shopping for new furniture or start planning your housewarming guest list – there are some important considerations for you to keep in mind as you embark on your journey towards home ownership.
A due diligence checklist can help you identify any issues that may affect your property and how they may affect you as the new owner. Your checklist may include important questions to ask or consider before going all in.
It’s important to note that the checklist below is designed as a starting point and professional advice should be sought before entering any property agreement.
Choosing the right location
Property and location go hand in hand, and the right combination could improve your prospects for financial growth should you decide to sell in the future. Once you’ve found a home that suits your requirements, be sure to research the lifestyle benefits, amenities, any future infrastructure plans and the property market trends within the neighbourhood.
Our highly experienced Caydon team do this research for you, designing apartments in well-established and sought-after suburbs. Our 10|20 living model means that in a Caydon apartment, you’ll never be more than 10 kilometres away from the CBD, and the everyday essentials can be reached in no more than 20 minutes.
Consider the condition of the home
If you’re interested in an established property, be sure to thoroughly inspect the condition of the home with the assistance of a professional building inspector. This will mitigate the chances of any future surprises, such as damaged electrical wiring or plumbing that can be very costly to fix.
If you choose to buy new, you’ll reap the benefits of brand-new fixtures, fittings and appliances that aren’t going to break down on you without warning. You also won’t need to invest any additional funds into renovations or upgrades, so your home will be yours to enjoy from the very moment you pick up your keys.
Enquire about any grants or subsidies that you may be eligible for
There are a number of costs associated with the purchase of a new home beside the sale price itself, ranging from stamp duty and transfer fees to local council rates. In order to budget and prepare in advance, it’s important to understand every cost and when it will be payable.
Know your buyers’ rights
Before you commit to buying any property, you may wish to engage a lawyer or conveyancer to thoroughly go through and help you make sense of the contract of sale. These documents provide you with all of the critical information about the property and detail the terms of the sale.
This article contains general information only. You should consider obtaining independent professional advice in relation to your particular circumstances. For more information visit Consumer Affairs Victoria’s due diligence check list for home and residential property buyers.