Due diligence is the systematic process of verifying that what you’re buying matches what you believe you’re buying — before exchange. Skipping or rushing it is one of the most expensive mistakes in property investment. Here’s the full checklist for residential investment property in Australia in 2026.
Investment Property Due Diligence — Full Checklist
Physical Condition
✓ Building and pest inspection ✓ Roof, gutters, drainage ✓ Electrical and plumbing condition ✓ Foundation and structure ✓ Asbestos report (pre-1990 builds) ✓ Pool/fence compliance (if applicable) ✓ Any unapproved structures
Legal and Title
✓ Title search — encumbrances, caveats, easements ✓ Contract review by solicitor/conveyancer ✓ Cooling off period in your state ✓ Section 32/vendor statement (VIC) ✓ Outstanding rates or levies ✓ Land zoning and permitted uses
Strata (if applicable)
✓ Strata report ✓ Last 2–3 years AGM minutes ✓ 10-year capital works forecast ✓ Sinking fund balance ✓ Known defects or litigation ✓ By-laws (pets, subletting, renovations)
Financial and Market
✓ Comparable recent sales ✓ Independent PM rental appraisal ✓ Suburb vacancy rate (SQM Research) ✓ Rental history if tenanted ✓ Net yield calculation (all costs) ✓ Insurance quote before exchange
One Property at a time
Brick by Brick 🧱
General Advice Warning: This article is general in nature and does not constitute personal financial advice. Please consult a licensed financial adviser before making investment decisions.
