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A guide to completing your due diligence pre-purchase

By Greg Bell

Before you finalise the purchase of a commercial property on the Gold Coast, you have to complete your due diligence. If you don't, any issues that you find with the property are your legal responsibility. Anything you find before the purchase is completed can be raised with the seller.

Going through your due diligence is a way of making sure what you're buying can be used in the way you want, or that you can build a structure on the land for business use. It can help you find out if a property is going to benefit your investment portfolio, or give you room to negotiate on the purchase price if you're going to have to spend money on the property to bring it up to standard.

Here's what you need to know about due diligence when buying a commercial property in Queensland:

Your property agent has all the information you need

Before you spend time researching a property, speak to your property agent about what you should be on the lookout for. Based on experience in buying and selling commercial property, they'll know what's important and spot any factors that could cost money to bring up to standard.

For example, you might buy a commercial space like a warehouse or a retail store that needs new fire detection equipment installed before it's safe to use. That sort of installation could be costly and if you can't afford it then you might not be able to lease it to businesses because they won't be legally allowed to operate.

Commercial property purchases include extra due diligence checks

When you buy a commercial property, there are lots of questions to ask that could affect the success of your investment. These include:

  • Is it in an area that's at risk of flooding or bushfire damage?
  • Will you need a permit to add infrastructure to the land (roads, buildings, drilling equipment etc.) and how much will those permits cost?
  • Have past activities on the site caused contamination to the land?
  • Are the land boundaries adhered to by neighbouring properties?
  • Are there sufficient connections to utilities like power, sewage and water?
  • Has there been any renovation work done to the existing property and is it covered by pre-purchase insurance?
  • Is the land or anything on it protected by Aboriginal cultural heritage laws?

It's a lot of information to check, which is where your property agent from Ray White Commercial Gold Coast comes in handy. They understand the ins and outs of buying commercial property and can help you to complete your due diligence checklist to ensure the success of your investment. For more information, get in touch with the team today.

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