The 72-Point Due Diligence Checklist Every Buyer Should Use (Free Template)

A property due diligence checklist is the difference between buying a high-performing, low-risk, investment-grade property and walking into a financial headache. Most buyers spend 90 percent of their time looking at properties and only 10 percent evaluating them properly. Professional buyers reverse that ratio. They know the quality of your due diligence determines how the property performs, how stable your cashflow is, whether tenants compete for it, whether you can leverage it for the next purchase, and how your portfolio behaves over time. This guide breaks down the full 72-point due diligence checklist used by top buyers agents and serious property investors, plus a version you can reuse for every deal.  

Section 1: Location Due Diligence

Understanding where you buy matters more than what you buy.  

A. Suburb Fundamentals

1. Median price growth over 10 plus years
2. Year on year growth stability with low volatility
3. Household income growth
4. Demographic trends such as families and professionals
5. Owner occupier percentage
6. Vacancy rate trend with a target below 1.5 percent
7. Rental yield trend
8. Days on market history
9. Sales volume stability
10. Crime rate trend
11. Local employment hubs
12. Socio economic rating
13. Proximity to CBD and employment centres
14. Proximity to lifestyle amenities
15. Suburb gentrification indicators
16. Internet speeds and NBN availability
17. School catchment desirability
18. Planned or current zoning changes

 

B. Supply and Demand Analysis

1. Number of current listings versus historical average
2. Pipeline of new supply
3. Development applications in the area
4. Land availability backdrop
5. Ratio of renters to homeowners
6. Auction clearance rates
7. Stock on market change over time

 

Section 2: Property Due Diligence

Once the suburb passes, the property itself must meet strict criteria.  

A. General Property Attributes

1. Property age
2. Construction quality
3. Floorplan functionality
4. Orientation with north facing preferred
5. Natural light levels
6. Ventilation quality
7. Noise exposure
8. Privacy from neighbours
9. Street appeal
10. Parking availability
11. Ease of access including driveway and entrances
12. Layout appeal to owner occupiers
13. Internal storage availability

 

B. Building Condition Assessment

1. Roof condition
2. Guttering and drainage
3. Foundation and stumps
4. Structural integrity
5. Electrical systems
6. Plumbing systems
7. Hot water unit age
8. Air conditioning and heating systems
9. Signs of previous repairs or poor workmanship
10. Signs of pests such as termites or rodents
11. Signs of water damage
12. Asbestos presence if applicable
13. Dampness or mould issues
14. Cracks in walls or movement
15. Quality of windows and doors
16. Condition of kitchen and appliances
17. Condition of bathrooms
18. Flooring condition

 

C. Legal and Compliance Checks

1. Title check including freehold, strata, easements, covenants
2. Boundary confirmation
3. Previous renovations and whether council approvals exist
4. Unapproved structures
5. Zoning compliance
6. Bushfire or flood hazard zoning
7. Heritage overlays
8. Easements affecting future use
9. Strata rules if unit or townhouse

 

Section 3: Financial and Performance Due Diligence

This determines whether the property fits your long-term strategy.  

A. Rental and Cashflow Analysis

1. Rental appraisal accuracy
2. Rental demand including applications per listing
3. Current vacancy trend in the suburb
4. Expected cashflow position
5. Potential depreciation benefits
6. Rental increase potential
7. Insurance risk profile and expected premiums

 

What you should receive for every property

Whether you run the checklist yourself or use a buyer’s agent, each shortlisted property should come with the evidence behind the decision:

• A building and pest inspection report
• A cash flow analysis: rent, holding costs, interest and expected depreciation (try the property cash flow calculator)
• A contract review by your conveyancer or solicitor
• Insurance quotes, so ongoing costs are known before you commit
• An independent rental appraisal from a local property manager
• Comparable sales and a property data report
• Zoning, flood, bushfire, noise and easement checks
• A local government area profile: population, employment and supply pipeline
• Photos and video walk-throughs if you can’t inspect in person

How to Use This Checklist

This property due diligence checklist works best when used in a clear sequence.

1. Start with macro due diligence. If the suburb fails, stop.
2. Move to micro location. Assess the street, pocket, and neighbourhood feel.
3. Inspect the property against the structural checklist. Issues here can become major hidden costs.
4. Run the numbers. Yield, cashflow, and vacancy resilience.
5. Compare against your strategy. Does this purchase move your portfolio forward.

If the property fails a critical checkpoint, it is not investment grade.  

Why Due Diligence Matters More in 2026

The 2026 market is more competitive, more data-driven, and more unforgiving than previous cycles. A poor purchase can block borrowing capacity, become cashflow heavy, limit future purchases, underperform for years, and drain equity instead of compounding it. A well vetted investment-grade property can outperform in strong markets, survive downturns, grow consistently, attract quality tenants, and enable the next acquisition. Professional due diligence is often the difference between a one property future and a four property future.  

Final Thoughts

Buying a property is easy. Buying the right property requires structured, disciplined, data-backed due diligence. Use this checklist as your foundation, refine it, and apply it consistently. Investors do not win because they bought quickly. They win because they bought intelligently.   For a broader framework on choosing the right support team, read our guide on how to choose a buyer’s agent in Australia.