Buying with a strategy
Off-market property: seven checks before you commit
An opportunity can be private without being a bargain. Here are the questions to bring to the table.
An off-market opportunity is offered without the usual broad public campaign. That can create a useful conversation, but limited exposure does not establish fair value or investment quality. Apply the same discipline you would to a publicly advertised property.
1. Define the reason for buying
Write down what the acquisition needs to achieve: income, a particular location, development potential or another objective. Decide how much uncertainty and ongoing involvement you can accept before considering the sales pitch.
2. Compare the price with evidence
Ask for relevant comparable sales and examine differences in location, land, condition and configuration. A valuation or independent assessment can help test the asking price. A claimed discount needs a credible reference point.
3. Verify the rental assumptions
Obtain a written appraisal from a manager familiar with the property type. Ask which comparable rentals support it and what vacancy, incentives or owner-paid expenses have been assumed. Treat a projection as an estimate rather than a commitment.
4. Review the property and documents
Arrange appropriate inspections and have your solicitor review the contract and title information. For any proposed change of use or development, seek specialist advice on feasibility and approvals before relying on potential upside.
5. Understand the full purchase or build cost
For completed property, allow for acquisition expenses and necessary work. For a build, request a clear inclusions schedule and examine exclusions, variations, site works and contingency. The advertised price may cover only part of the commitment.
6. Confirm the funding pathway
Discuss the property type, valuation and loan structure with your finance professional. Understand deposit requirements, settlement timing and any conditions. Do not assume an unusual layout or operating model will be financed on the same terms as a standard home.
7. Plan ownership and an eventual exit
Consider the management workload, ongoing expenses and who might buy the property in future. Ask what would change if the initial rental strategy underperformed. Keep the decision connected to your wider financial position.
The strongest opportunity is one you can explain clearly: why it fits, what the evidence shows and which risks remain. Consilium’s approach is to work through that reasoning with you before you commit.
Further reading: ASIC Moneysmart: property investment considerations.
General educational content only. This information does not take your circumstances into account. Obtain advice from appropriately qualified professionals before making an investment decision. Images are illustrative and do not identify a listed Consilium project.