These may include plans for widening roads, exercise of easement use on the property by authorities (electricity, gas, sewerage etc) and right-of-way restrictions, where the purchased property is dependent on a right of way granted by an adjoining owner.

The property purchase checklist developed for purchasers should include all possible risk areas and be continually updated to ensure a measure of protection when buying property. Failure to identify potential problems prior to purchase can have a significant negative impact on the return on investment.

 

 

 

Activity

Using the property identified from Happy Valley, develop a checklist of factors that may affect that value of the property, for example, easements and encroachments. Use the checklist to undertake an analysis of the property.

In developing the checklist, take a risk identification approach and consider all the possible factors (including hidden factors) that may affect the value of the property.