When you are investing in what will normally be your largest asset it would seem reasonable for buyers, especially first home buyers, to check that what you are buying is going to be up to scratch.
- DD, or Due Diligence is the process of checking there is nothing sinister lurking that you can’t see when physically viewing a property you want to buy.
Key items to check are:
- LIM report, or Land Information Report, which gives you a summary of property information held by your local council. It can highlight potential issues around flooding, erosion, consents and others. You could request this or your solicitor could.
- A title search checks for things that may have an impact on what you can do to/with the property, easements (right to access your land) etc. This is also something your solicitor can check into and report anything important back to you.
- A registered valuation will be required by lenders if you are looking to borrow more than 80% of a properties value; costing up to $1k depending on your location and complexity of the valuation.
- A builders report will highlight things you do not notice or can not see when viewing the property yourself.
If you undertake to do some/all of these things you should get a pretty good warts and all picture of the property which will ultimately guide your buying decision.