IPD's Due Diligence Checklist
IPD Property Group outline as follows key aspects of the due diligence procedure. IPD are able to advise and assist in the fact identification process including but not limited to the financial and tax implications that will impact on the investment. Please note that in all due diligence processes some independent legal advice may be required.
Marketing and Value
Factors such as location, the properties view, the facilities provided near the property and the proximity to such things as restaurants, city center services, beaches for tourism benefits and any other local attractions can affect the rental potential and the resale value.
Emerging or established - both types of market have their advantages and disadvantages, and investors while trying to spot the next big boom location, should not dismiss the locations where property might simply be undervalued in a tried and tested market and therefore offering great investment potential. IPD can assist with past, present and future trends to provide the investor and good concept of potential.
Price Point and Ultimate Value
Net profit will be affected by the initial price paid for the property, the returns available and over what period, and the ultimate sales price. In an ideal world an investor will wish to purchase at the lowest possible price point, have high net rental returns and sell above the purchase prices. IPD can provide comparisons with other properties and developments, down the the square meter, all offered within the same area as we have a wide range of products available in the same locations.
How quickly will the investor be able to sell the asset depends on a range of factors not limited to but includes the domestic market activity and strength as well as foreign investment interest.
The average yield over a set period is the key factor in any solid investment. A slow steady domestic market investment over 12 months may bring in no more return than a tourism investment with a shorter 6 month window. All markets are subject to fluctuations and commercial is no different from residential in terms of its exposure to both the upside and downside.
The Developer and The Development
IPD Property Group partner with highly respected developers located around the globe. We look at the track record of delivery and the reputation the developer holds. We have built firm relationships with key people in important decision making positions that enable investors to make better choices. Independent legal advice is recommended when considering any real estate purchase to ensure contracts are in order.