Investment property decisions should start with the numbers, but the full picture is much more than yield and price. In my work advising buyers of Melbourne and inner-suburban apartments and units, I coach investors to ask a consistent set of questions—many of which even experienced buyers sometimes overlook.

Here’s my practical investor checklist:

1. What is the net yield (after OC, management, and insurance, not just gross yield)?
2. What is the recent rental history—has the apartment ever been vacant for extended periods, and at what rent?
3. How healthy is the owners corporation (sinking fund, history of levies, any big works funded or due)?
4. What are the forecast outgoings for the next 3–5 years?
5. Are there any known building or compliance issues affecting lending, insurance, or owner risk?
6. Are there recent trades of similar apartments in the building or area—and did they sell to investors or owner-occupiers?
7. What can you learn from the vendor’s disclosure statement and from prior building minutes?
8. Will the unit appeal to a range of tenants (location, layout, light, parking, amenities)?
9. What are the property’s main weaknesses, and how likely are they to affect rent or resale?
10. Are there any changes to law, lending or local zoning that may affect demand or value within the horizon you want to hold it?

I always recommend investors have their property manager or advocate review the numbers and documentation as a second set of eyes—especially if it’s your first purchase in a given area or building. Some of the best value I’ve provided clients is helping them spot expenses or risks early, before they become a deal-breaker post-purchase.

For a more detailed, investor-friendly due diligence checklist, or to discuss apartment buying strategy, contact Genneva Smarrelli at http://collings.com.au/contact. In a market where knowledge means confidence, there’s no such thing as too much preparation.