This sample Due Diligence report reviews an illustrative established property in Ipswich, QLD 4305, using a purchase price of $800,000 and expected rent of $580 per week. The assessment applies a balanced investment strategy and examines key considerations such as flood exposure, planning controls, easements, building condition, termite risk, insurance, unapproved additions and nearby development.
Due Diligence risk profile
A visual summary of the six area-specific checks identified in this property review.
Diligence Snapshot
This looks like a value-add purchase only if the site is clear of meaningful flood and overland-flow exposure and the home’s later additions are fully approved. The first checks should be title, council planning overlays, flood mapping, and building approval history, followed by a thorough building and pest inspection. The biggest uncertainty is whether the renovation scope is cosmetic or driven by hidden structural, drainage, or compliance issues.
Top red flags to investigate
- Flood or overland-flow exposure that could affect insurability, repair costs, and future resale.
- Unapproved later additions or enclosed areas that may require retrospective approval or removal.
- Drainage or retaining issues on a sloping or poorly drained site that could worsen renovation costs.
- Character, heritage, or planning overlays that may restrict extensions, demolition, or façade changes.
- Termite damage, timber rot, or structural movement in an older timber home with renovation history.
Documents to request
- Current title search and plan, including easements, covenants, and any encumbrances.
- Council planning certificate or equivalent overlay report covering flood, character, and zoning controls.
- Building approval history for the original dwelling and all later additions or alterations.
- Recent building and pest report, including termite evidence and moisture findings.
- Insurance indication or broker feedback confirming likely coverability and flood-related exclusions.
Questions to ask the agent / vendor
- Have any parts of the house, deck, enclosure, or extension been built without approval?
- Has the property ever flooded, taken water through the yard, or had drainage remediation works?
- Are there any known easements, access issues, or stormwater constraints affecting the site?
- What renovation works have been completed, and can invoices, permits, or certificates be provided?
- Has insurance ever been declined, limited, or materially repriced because of site risk?
Inspection focus areas
- Subfloor, stumps, and bearers for movement, moisture, and termite activity.
- Roof, gutters, downpipes, and stormwater discharge paths for leak and overflow risk.
- Internal walls, ceilings, and wet areas for patching, sagging, or signs of prior water ingress.
- External additions and finishes for workmanship quality and evidence of non-compliant construction.
- Site grading, retaining, drainage, and runoff paths during or after rain if possible.
Area-specific checks
Pricing sanity-check prompts
- What is the estimated post-renovation value after allowing for flood, approval, and compliance risk?
- How much of the asking price is land value versus the cost to repair or modernise the dwelling?
- Does the likely renovation budget still leave enough margin for contingency, holding costs, and insurance?
- Would a comparable, lower-risk property in the same market deliver a better risk-adjusted outcome?
Walk-away triggers
- Material flood or overland-flow exposure that cannot be insured on acceptable terms.
- Major unapproved additions or structural works with no practical path to regularisation.
- Evidence of significant termite, rot, or subfloor movement beyond a manageable renovation scope.
- Planning or heritage restrictions that block the intended value-add strategy.
Final diligence view
Proceed with conditions only. The highest-priority next step is to confirm flood and overland-flow exposure, then verify title, planning overlays, and approval history before committing to price. If those checks are clean and the building inspection shows manageable repair scope, the asset may be viable as a renovation play. Confidence level: moderate, because the key risks are identifiable but still unverified.
This example demonstrates how ProptyWise can organise important property risks and investigation points into a clear due diligence checklist before a buyer proceeds. The findings are based on the supplied property details and should be independently verified through council records, qualified inspectors, legal advisers and other relevant professionals. Explore more AI report examples or create a Due Diligence report using the details of a property you are considering.