9 Points To Have On Your Due Diligence List In Newcastle
When it comes to purchasing property in Newcastle, conducting thorough due diligence based on an understanding of the local area is crucial. Our job in your property search is to use our experience to present key information so that you can make informed decisions. Whether using a Buyers Agent or going it alone, here are nine essential points to have on your due diligence list when considering purchasing a property in Newcastle:
Flood Risk Review: Newcastle is known for its beautiful coastal location, but it's essential to assess flood risk potential. Obtain flood maps from the Newcastle City Council before making an offer, and understand the property's susceptibility to flooding. This in particular can impact your insurance premiums and the future value of the property. Areas like Mayfield, Maryville & Carrington are notoriously low-lying areas as a starting point.
Fire Risk Review: Fire safety is a paramount concern for any property owner. Research the proximity of the property to fire-prone areas again using tools and fire risk maps provided by Newcastle City Council & Newcastle Fire & Rescue. Close proximity to bushfire prone land will render future renovation costs higher than usual due to building codes requiring you to install fire-proof measures.
Public Housing Review: Investigate the prevalence of public housing in the area. While public housing can support a diverse community, an over-concentration in the neighbourhood might impact the property's long-term growth and desirability. This can also impact on your day-to-day liveability or require you to spend some extra money on security measures when moving in.
Development Application Review: Check with the Newcastle City Council to see if there are any recent or upcoming development applications in the vicinity. The best way to do this is through the council’s Development Application Tracker. New developments can enhance an area, but they might also obstruct views, sunlight entering your property or cause major construction disruptions.
School Zones Review: School Zone boarders can quite literally add or subtract $100,000 from a properties value, depending on the purchaser. Knowing which school zone the subject property resides within will be a critical factor to helping you value the property. The second layer of this is knowing which schools within Newcastle are more desirable than others, which are public and which are private, and what traffic congestion is like in those areas on school days. A great tool here is the School Finder website, provided by the department of education.
Local Amenities Snapshot: The accessibility of essential amenities can significantly impact property value. Consider proximity to public transportation, shopping centres, medical facilities, parks, and recreational areas to assess the convenience of the location. Walkability is the key when considering these factors from an inner city perspective.
Building & Pest Report Review: Of course, it goes without saying. When buying a home its going to be critical to understand the quality of the building in the context of its age. When you receive your Building & Pest Report, ensure that you speak with the inspector on the phone to clarify any concerns and ALWAYS ask – ‘how does this property compare to other properties you’ve seen of a similar age and condition?’. It’s no use hearing that the piers of a 100-year-old home need replacing in isolation. If you were aware that most 100-year-old homes need piers replaced, would you still consider the purchase? Take your time here and ask as many questions as you can of your chosen inspector.
Strata Report Review: The same rules apply for strata buildings. If you're considering purchasing a strata-titled property, review the strata report to understand the financial health of the strata scheme, any past or ongoing disputes, and maintenance or repair obligations, and speak to the strata inspector to clarify their commentary. Remember, ask that they compare this report to other reports they’ve recently completed to give you a benchmark from where to draw your conclusions.
Fair Market Value Assessment: Lastly, and most importantly, seek a professional property valuation or conduct a comparative market analysis to determine the property's fair market value. This step ensures that you're not overpaying and gives you a strong negotiating position based on your findings.
Conducting due diligence based on these nine points will help you make a well-informed decision when investing in Newcastle's property market. This process is exactly what we look for when completing an assessment for one of our clients. Remember, purchasing a property is a significant undertaking, and taking the time to gather all the necessary information will empower you to make the best possible decision for your future.