What information do I require to make an informed decision about a particular rural locality as a potential residential real estate investment location?
Consider the following:
· Town Name
· Population
· Immigration/ emigration; within last five years, ten years, and also forecast for next ten years.
· City council strategic planning report.
· Economic base industries
o Is the area reliant on one base industry? E.g. farming, mining, a factory?
· Facilities
o Hospital
o High-schools
o TAFE
o Shopping centres
o Banks (how many?) have banks come to the are or left the area?
o Fast food restaurants.
· Nearest major centre.
· Is town on the way to somewhere else more desirable? E.g. highway, railway.
· Airport? Flights to where? How often?Real Estate Specific:
Real Estate agents.
· How many?
· List their contact details.
· Are they rental managers also?
o How many properties do they manage?
· Therefore, how many properties are managed in the area total?Rental Demand
· Obtain a copy of each agent’s present rental sheet.
· What are different kinds of properties renting for?Recent Sales History
Many agents seem to like to display a list of their recent sales successes. Once these have been closed, not just put under contract, the sales data goes onto public records. The agent can then release the final sale price achieved.
Ado, you might be onto something here.
Reading through this forum and Somersofts, I reckon it would be a wealthy resource for forumites to contribute jointly to a website that kept uniform up to date due diligence information on regional towns, and city suburbs. At the moment, this forum has lots of snippets covering lots of different areas. If we took Steve’s idea of templates one step further to due diligence of macro and micro economic state of a township or suburb, then it would certainly take a lot of repetition out of it for all of us trying to attain the same objective.This way, we could all divert our money to where it is most needed at that point in time. It would really help private sector efficiency in supplying accomodation.
I would envision that contributors would have to pay a healthy subscription to receive the info.
If the macro and micro data was then combined with stats taken from realestate.com.au etc, then it could be a thing of true value.
Bruce
Mooloolaba, QldThat is a great idea, and it could be set up state-by- state.
Of course once you subscribe to a particular state, there should be free updates, as circumstances of the area changes e.g. a sudden increase/decrease of an area etc.
THis would be so fantastic.
People who naturally like researching and are good at it could have the benefit of getting paid a percentage, and people who loathe researching could benefit from the information for a reasonable price.
So YES to this idea from me![^]At one stage I frequented a shares website where every now and then someone would produce a post extolling the virtues of a particular company.
Because of the boom at the time there would be a lot of naive followers who immediately would jump on the bandwagon, following the tip (or so they thought) whilst at the same time the poster would be selling the share he had been pumping up.
If any details about a particular town is supplied the source should be quoted so one can check the value of what is being said.
Pisces
Pisces I couldn’t agree more. In fact I was going to suggest that as well, didn’t think of it yesterday.
It is very important I think to still do your own due diligence, an not to rely ONLY on the research of others, so the resources must be included. I don’t think the service would have a lot of value if resources aren’t included.Pisces, the website would have absolutely no value if it wasn’t carried out at the highest ethical level. It would have to be done strictly to template consistency, in a business like manner, with the integrity of an .org site.
When wading through the postings here, I think of the time we all put into it, and think how much more efficient and rewarding it would be to use our time logically towards a clear goal. We all have the same goals, there are obviously some smart people here. We could actually create jobs for the disabled or elderly to get involved in the research. To me, an individual can only do so much. A cooperative group, or an investment syndicate, operates so much more efficiently when looking at things on a non local level.
Working out how to charge for the info could be worked out later. I suppose at the end of the day, we would be developing a more detailed resource such as residex, prd, ray white, and matusik put out. The only thing is we are going one step further and sourcing +CF opportunities.
I am just thinking about how to turn a forum like this into a more time and energy efficient investment for us all. Our time is in many respects more valuable than our capital.
Bruce
Mooloolaba, QldI am afraight that, unless it is done as a commercial enterprise, it won’t work.
In any event,what is wrong with using information from
information providers like Residex and Matusik ?Too dear at say $ 65 a report ?
Pisces
Pisces, if you are happy with the detail in their reports, then keep paying your $65.
I don’t think they do focus reports on regional towns either.
Bruce
Mooloolaba, QldI see problems with this
I like the idea however, but…
Information changes, people have expectations and if you sourced a site that gave specifics, even though the onus is on the individual, I can guarantee there will be problems.
At the end of the day, pooling info is great, but we arent infallible. Pooling cash flows….positive properties…well I would assume most people are in it for themselves, I am not convinced when it comes to making a profit that greed would not enter into it.
Nothing comes for free, anything worthwhile? I assume would have been picked and manybe the scrapes left, or some for a few….you get my drift. And if WE all flocked to an area, dont you think we would create an artificial boom?
Imagine one investor doing their thing, imagine 20?
I dont mean to put the kyber on anything that appears positive, but I guess I am….
You would be relying on ethics, ethics are not regulated, they are someones subjective stance and ethics differ from person to person. Like how do you substantiate a persons ethics? It isnt guaranteed and it is emotive.
Sorry I have been writing this for the last 15 mins! ahhh.
Personally, demogaphical info is also out of date, most of the councils rely on ABS, ABS is completed…well, forget it, the info is out of date the moment they start collating it.
Even electoral rolls are out of whack, for get census’ I do family history and lets face it, how many people list the true aspects? eg income? relationships…etc etc.
I would look at the town, get a feel for it, see what is for sale, see what isnt, see projected stuff, like building permission, council newspapers have those. There are many projects given the green light behind closed doors.
just my thoughts
Elves
People do love to digress…
Honestly guys, I was hoping people would read my post and give me some positive feedback. Have I left anything out by your appraisal etc?
I have read a lot on this forum the past couple of days about people discussing ethics related to Bird Dogging/ providing a service for a fee.
Now I made this post with an aim to help others help themselves.
The net is the greatest tool of leverage of our time..Honestly, if a potential investor is unwilling to sit down and commit an hour to analysing a town for themselves, then they shouldn’t bother.For me this comes back to personal ACCOUNTABILITY.
It’s lucky that so many people spend so much time on this forum rather than actually out there buying positive cash flow property, otherwise there would be none left.
Regards, Adrian.
Hi Adrian
this isnt a personal attack, but why are you so concerned about what is being said? Are you looking for a pat on the back? I see from this that you are concerned with some aspects of finding info or making templates, whatever….
on one hand you talk about digressing, on another you are seeking approval? Maybe I have misread? but you were asking for feedback, the way I see it, you got it.
Do you include yourself in those assumptions? I mean by spending SOOOO much time on here posting and not getting out there doing something? how do you know that people are or are not doing all of the above.
Don’t assume because people post on here and do a lot of talking (to which I am sure we ALL benefit) that they arent wheeling and dealing in the background.
The most positive thing I can see, is people talking, networking, and giving their opinion….gosh I have learnt so much and at the end of the day, I gather, I disperse and I take on board what I want to..and utilise info for my own benefit.
No one will praise me, and I am not looking for that. hehehe I can reward myself later
cheers
Elves
Elves, I take your points. Of course, i understand what i am talking about is highly idealistic. However, there are several interim setups one could take towards that ideal. i.e. for one person to do due diligence on many towns is very time consuming. If a group of 5-20 act cooperatively and do due diligence on 50 towns, and share the data, then all will cut through the crap a lot more quickly and very likely move along to the next logical and more profitable matching of supply to demand.
If this collated data was even shared privately between an “e-investment group” then I see it a quicker way to achieve that common goal.
In this day of reluctant and invisible mentors, the next best thing is group cooperation. I am just putting up ideas to take a systematic approach to it.
Of course I understand there needs to be a group dynamic and there are a hundred barriers, but I think it is a positive thing to discuss different ways info can be shared more efficiently than it currently is on the forum. Investment syndicates are growing in popularity and they have more buying power than the individual. I see that a group of like mindeds could achieve a lot more than the sum of its parts alone.
Anyway, I am happy to take it on the chin from Adam or anyone else. Some people just don’t see the potential of the web and the power of a cooperative group.
Bruce
Mooloolaba, QldAdrian, your list is excellent. Unfortunately I have nothing useful to add at this point as I am brand new to PI (ie. bought Steve’s book just 4 days ago and have read it twice already – I am so ready for this!) I just wanted to thank you for sharing your ideas with us (I will be using them to help me start my regional research tomorrow) and I look forward to a time when I can return the favour and share some of my learning.[:p] Anthea
Hey I love the web and sharing info, golly I would be lost without it. I spend most of my life on a computer (work makes me) I spend equal time on here for personal pleasures and those are of the investment kind.
I love this forum, and I really love doing research, most of which I do online. I save a lot of time using a computer (even though theoretically it takes up more time!) is that a conundrum?
I am all for having some basic guidelines or tools, just be warned that they are not always the be all and end all, is really all I am concerned with.
cheers and goodluck all
Elves
I concede your points willingly Elves..[
]To be honest, when I posted that reply I was a little hung over and snippy..
I do like the idea of the town analysis and info sharing programme.
I’ll lead by demonstration and do a couple of my own which I’ll post here.
Regards, Adrian.
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