Five-Tab Workspace
The Guided Decision Framework is a five-tab workspace — Overview, Financials, Location, Checks, Offer — that always tells you what to do next. Each tab builds on the previous one, ensuring nothing is missed.
- Calculate gross rental yield (target: varies by strategy, but understand the local benchmark)
- Calculate net rental yield after all expenses
- Verify the advertised rental income against comparable properties on realestate.com.au and Domain
- Check current vacancy rates for the suburb (below 3% is generally healthy)
- Research rental growth trends over the past 3-5 years
- Confirm the property is not under a fixed-term lease at below-market rent
- Calculate weekly cash flow position (rent minus all expenses minus mortgage repayments)
- Model the impact of a 1-2% interest rate increase on your cash flow
- Include all holding costs: council rates, water, insurance, strata, management fees
- Budget for maintenance (typically 1-2% of property value per year)
- Factor in vacancy allowance (minimum 2 weeks per year)
- Assess whether you can comfortably fund any shortfall from your income
- Calculate the negative gearing benefit based on your marginal tax rate
- Estimate depreciation deductions (get a quantity surveyor quote for older properties)
- Understand the land tax implications in the relevant state
- Factor in stamp duty as an upfront cost (not a deductible expense)
- Consider the capital gains tax discount (50% for properties held over 12 months)
- Review historical capital growth rates for the suburb (5, 10, and 20-year periods)
- Check the suburb's position in the property cycle
- Research planned infrastructure projects (transport, hospitals, schools, commercial developments)
- Assess population growth projections for the region
- Evaluate supply constraints (zoning, geography, heritage overlays)
Virtual Buyers Agent handles this automatically.
See how it works - Order and review the title search (check for easements, caveats, encumbrances)
- Obtain the Section 32 or Contract for Sale and have a solicitor review it
- Check for any registered covenants or restrictions on use
- Verify the zoning allows your intended use (residential, commercial, mixed)
- Confirm there are no outstanding council orders or compliance notices
- Check for any heritage overlay or listing that restricts modifications
- Search for planned council rezonings that could affect the property
- Conduct a thorough personal inspection (visit at different times of day)
- Commission a professional building and pest inspection
- Check for signs of structural issues: cracks in walls, uneven floors, sticking doors
- Inspect the roof, guttering, and downpipes
- Check plumbing and electrical systems (ask about age and last update)
- Look for signs of water damage, mould, or rising damp
- Assess the condition of bathrooms, kitchen, and flooring
- Check fencing, drainage, and any retaining walls
- For units: review the strata inspection report and minutes of recent meetings
- For units: check for upcoming special levies or major works
- Visit the neighbourhood at different times (morning, evening, weekend)
- Check proximity to public transport, schools, shops, and employment centres
- Research crime statistics for the area
- Look for environmental risks: flood zones, bushfire prone areas, contaminated land
- Check for nearby developments that could affect the property (positive or negative)
- Assess noise levels from roads, airports, train lines, or commercial activity
- Talk to neighbours and local agents about the area
Environmental Risks
Properties in flood zones, bushfire prone areas, or near contaminated land may face higher insurance premiums, lending restrictions, and reduced buyer pools at resale. Always check your local council's planning maps.
- Speak with 2-3 local property managers about expected rental income
- Check comparable rental listings currently on the market
- Understand the tenant demographic (families, professionals, students)
- Assess the property's appeal to renters (layout, parking, storage, outdoor space)
- Confirm the property meets minimum rental standards in the relevant state
- Create a comparison spreadsheet with all key metrics for each property
- Compare net yields, cash flow positions, and growth potential
- Weigh up the risk factors identified during checks
- Consider which property best aligns with your investment strategy (yield vs growth)
- Factor in renovation potential and the cost to unlock it
- Assess which property has the strongest exit strategy (liquidity, buyer pool)
- Identify the single biggest risk for each property
- Consider the worst-case scenario for each (what happens if rates rise 2%? if vacancy doubles?)
- Assess concentration risk (do you already own in this area or property type?)
- Evaluate the property against your overall portfolio strategy
- Get a second opinion from a trusted advisor, accountant, or experienced investor
- Confirm pre-approval is still valid and covers the expected purchase price
- Verify your deposit funds are accessible
- Confirm the property meets your lender's criteria (some lenders restrict certain postcodes or property types)
- Understand the loan product you will use and its features
- Budget for all purchase costs: stamp duty, legal fees, inspections, loan fees
Virtual Buyers Agent handles this automatically.
See how it works - Research recent comparable sales in the area (within the last 3-6 months)
- Determine your maximum price based on your financial analysis (and stick to it)
- Understand the vendor's motivation and timeline (your agent can help with this)
- Decide on your negotiation strategy: auction bidding plan or private treaty approach
- Have your solicitor or conveyancer ready to review the contract
- For private treaty: submit a written offer with clear conditions (finance, building inspection, pest inspection)
- Include appropriate cooling-off provisions as allowed by your state
- Specify your preferred settlement period (typically 30-90 days)
- For auctions: set a firm maximum bid and do not exceed it under any circumstances
- Ensure your deposit is ready (typically 5-10% of the purchase price)
Auction Discipline
Set a firm maximum bid before auction day and do not exceed it under any circumstances. Emotional bidding is one of the most common and costly mistakes investors make.
- Instruct your solicitor to exchange contracts
- Finalise your finance application and obtain unconditional approval
- Arrange building insurance from the date of exchange (required by most lenders)
- Organise a final pre-settlement inspection
- Set up property management if using an agent
- Prepare for settlement day: ensure funds are transferred as directed by your solicitor
- Begin planning for the first tenant (advertising, screening, lease preparation)
Deal-Breaking Red Flags
Regardless of which stage you are in, these red flags should make you pause or walk away:
- Significantly below-market price with no obvious explanation — there is usually a reason
- Vendor unwilling to provide access for inspections — what are they hiding?
- Unusually high strata levies or upcoming special levies — can destroy your cash flow
- Flood zone, mine subsidence, or contamination — often uninsurable or very expensive to insure
- Rapidly declining population in the area — property values follow population trends
- Major employer closing or relocating — devastating for local property markets
- Building defects identified in the inspection report — get expert costings before proceeding
- Title issues such as unregistered easements or boundary disputes — legal headaches
Virtual Buyers Agent handles this automatically.
See how it works 