Hi,
I’m new to the game and when searching for an area to look at closer I have been using research tools such as, RP Data, Residex, Homepriceguide, Commonwealth Bank Property Value Guide, Property value.com to name a few. The problem is, when comparing info there a discrepancies in the data. Which of these are more reliable? Or do you not use them?
Thanks
LukeHi Luke,
Thanks for your post. I am regularly asked to what extent I use research services, so I’m sure your question is a common one.
Personally, I think that research can be beneficial to gain a context for an area. In particular, to gain a snapshot of the demographics and to then compare it to recent trends.
For example, factors I do pay attention to include:
1. Population movements in that I look to invest in areas with increasing population as this adds to housing pressure (i.e. capital appreciation)
2. Rental vacancies / statistics… what I’m looking for is how much rental demand there is in the area. This data can be found from the REIA (for a fee) or by doing some on the ground research by going into real estate agent’s offices and looking at how many properties are currently for rent.
What I do not pay much attention to is what a potential property sold for several years ago as I see this as largely irrelevant. If you think you can make money then that’s the important issue, not what the previous purchaser bought it for in a different market.
The danger in all this is to avoid, at all costs, analysis-paralysis as this will only lead to confusion and difficulty in pulling the investment trigger.
I’d be interested to know what data do you look at and how you use the information you collect.
Have a great day.
Steve McKnight
**********
Remember that success comes from doing things differently.
**********Steve McKnight | PropertyInvesting.com Pty Ltd | CEO
https://www.propertyinvesting.comSuccess comes from doing things differently
Originally posted by luke__moore:Hi,
I’m new to the game and when searching for an area to look at closer I have been using research tools such as, RP Data, Residex, Homepriceguide, Commonwealth Bank Property Value Guide, Property value.com to name a few. The problem is, when comparing info there a discrepancies in the data. Which of these are more reliable? Or do you not use them?
Thanks
LukeLuke they are all a great start but that’s all they are…. a start
And as you say they give conflicting advice.
The next step is to pick out a geographic territory in which you will become an expert and learn all you can about it.
Then all the reasearch you are doing will make sense.
You will need to know much more than just what properties sell for. To become an expert you will have to get to know things like….
1. Geographic layout
2. Major street names
3. Subdivision names
4. Price ranges by major subdivisions and streets – prices achieved not asking prices
5. Rental market data
6. Future road plans
7. Future developments in the planning stage
8. Local employment statistics
9. Employment trends and major impacts that may affect these trends
10. Local private & public schools
11. Public transportation routes
12. Local council town planning and zoning rules and regulationsSo the research reports are a start, but to be able to buy a property under market value you will have to do a lot of leg work
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.metropole.com.auHi Steve,
Thanks for the reply mate.
The information that we gather are from local council websites, mainly economic, demographic statistics as well as population trends. The unfortunate thing with this info is that it is old (from the last census). We also get rental and sales data form the DOH.
With regard to Rental vacancies / statistics I presume you mean the fewer in the shop window the better. I have found this info the hardest to get because estate agents clearly have there own agenda when parting with this information.
In terms of how we use this information, because we are looking for our first property, we really don’t know what we are doing! We have tried to be methodical with the info that we have gathered but as I mentioned earlier the sources they have discrepancies. So as you can see it’s a catch 22 there are ether discrepancies or it is out of date. We certainly feel we are in the grasps of analysis-paralysis.
I said to my wife this morning that we need to devise a simple and quick tool in analyzing this information, any suggestions? Is that the kind of thing you cover in your Buyer Beware book?
Thanks allot for your reply.
Luke and JodieThanks for your reply Michael,
There are allot of things to cover. We have covered most of these (forgot about the Public transportation routes though). Thanks.
Luke and Jodie
Hi Luke
Michael and steve are dead right. You can look at all the reports you like. To research a market you have to understand what properties are worth and how much they will rent out for for. What you have to do is inspect all the properties for rent and sale in a given area. Talk to shop keepers, anyone you can find who will tell you about the area. This takes time but can be very rewarding.
Otherwise you can use a professional like Michael or myself to assist you.Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand Buyers advocate
service and seminarsNigel Kibel | Property Know How
http://propertyknowhow.com.au
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