What should I look out for on a site visit?
If you do go on a site visit, you might wonder, “What should I look our for”. Here are the top 3 things our clients tend to look out for:
#1 – The neighbourhood vibe
When you go on a site visit, don’t just check how close the motorway is. You want to scout out and get a feelof the area.
Look for things that might attract or repel tenants. Is there a gang pad next door? That’s a red flag.
But if the area just isn’t “your kind of place” remember – it’s not meant to be. You’re buying as an investor, not a homeowner.
Think about what your target tenant wants; not what you want.
Your target tenant is someone who already lives and works in that area. Tenants care about whether they can afford the rent and if the house has the right number of bedrooms. They don’t care as much about whether they love the landscaping (or not).
#2 – Deal breakers
Each of us has our own deal breakers for properties. Some are more … rational than others.
One of our investors went on a site visit, but then cancelled the contract the next day.
The reason? There was a bus stop outside the property.
Now, most investors would think, “Great. There’s a bus stop right outside. That’s useful for tenants.”
So everyone has a different opinion and you need to look at what the deal breakers are for you.
Same goes for schools. At Opes Partners we once recommended properties that were close to a nearby school. One client was worried about the noise; another was stoked that their future tenants could walk their kids to class.
And although you don’t want to say “no” to every property (otherwise you’ll never get ahead) the moral of the story is that it’s better to find something that suits you, than to buy something that keeps you up at night.
#3 – The developer’s other work
One of the most important things to do on a site visit is look at the developer’s other properties.
If the same developer has completed other projects nearby, go check them out. Look for:
- When the properties were built
- What condition they’re in now
- Whether the materials have aged well or poorly
This gives you a sense of the developer’s quality. This will give you more confidence about whether your property will last the test of time.
