Hi everyone
I am currently reading Steve’s book “$1mil in property in 1yr” and have just completed Part 3 that deals with market sentiment and the indicators to look for when taking a market position.
My question is with regards to these indicators (eg: auction clearance rates, interest rates, building approvals, media reports, and talking to others). The interest rates and media reports are obvious and readily available but, being a beginner, i dont know where to find the info regarding auction clearance rates and building approvals. Can someone help me with this please?
Also, can i get this information for a specific region / town or is it for larger areas? And if this info is available for specific regional centres / towns, is it relevant?
Also, where specific regional centres / towns are concerned, it seems that obvious people to talk to about real estate trends would be locals. If i am looking to buy out of my area, and dont know any locals, who would i speak to? What would i look for in the “ideal local” to talk to about market sentiment in their town?
Any other suggestions on what people use as indicators of market sentiment would also be welcomed! [biggrin]
Thanks!!
Daniel & Belinda
AKA “The Pups”Hey Pups, great post.
Clearance rates are listed in the API magazine each issue for the preceeding 6 months. In the Jan issue they’re on page 75. They do just metro areas as clearance rates in regional areas aren’t too much of an indicator because they’re not as prevalent in the city.
Any significant movement in building approvals and interest rates always finds it’s way into the news. Check newspapers and the internet and just keep your eyes peeled.
A lot of other info you want is found in the API magazine, but for really specific info, say for a town, reports covering all this can be bought from people like RP data tthat can give a really valuable insight into an area. Also to gauge an area and what it’s like you can always put it up on the forum, at least one person would probably know about the area or would have invested there. If the area is a potential goldmine, keep the secret to yourself and do your own research!!!
As for locals in town, the ideal local is more than one or two local opinions. Try cafes, newsagents, gift store owners etc. and also once again plumb the depths of knowledge on the forum. However be very wary of loaded advice coming from RE agents.
As for indicators I use, I look at what’s for sale, how many for sale, how many under contract and how many have sold recently. This is just a start, everyone has their own research fetishes. For instance one town I was studying had 140 places for sale and no more than 5 under contract. I also watch towns like a hawk and fairly soon I sort of become a somewhat market expert on the area even if it’s on the other side of the country.
Also generally and over all, trust yourselves. You would know deep down if a place is cooked or a shoddy deal etc. Listen to that inner voice that speaks in feelings and get stuck in. The deal of the decade rolls around once a week.
Happy hunting…g7
Thanks g7, very much appreciated!
Still open to any other suggestions if anyone has something to add!
Daniel & Belinda
AKA “The Pups”Hi Pups
I would stick to main cities. The market is still moving quite well and with a slowing of prices we should start to see rental figures start to increase. I think that many country areas are at worst over priced and at best the growth prospects are limited. Also there are only so many investorsd in country towns.
Also keep in mind that the direct examples that steve referes to in his books belong to a different market. Steve is saying that you need to be flexible, as the market changes all the time.
Nigel Kibel
http://www.propertyknowhow.com.au
Australian and New Zealand The United States Property Researcher and education
One Day property investment research workshop The United States. Please register your interestNigel Kibel | Property Know How
http://propertyknowhow.com.au
Email Me | Phone MeWe have just launched a new website join our membership today
A few other thoughts for a beginner:
1.Take time to educate yourself – there is no hurry in this market.
Read books, attend seminars, ask questions on this forum.
Get to know your local property market like the back of your hand.2. Get you finance in place before you start seriously looking at properties so you know what you can afford. Learn to use “other people’s money”
3. Develop a support team — solicitor, accountant, finance broker, maybe a buyers advocate’. Get advice on the best structure for purchasing your property baring in mind assett protection and tax consequenses.
4. Associate with like-minded and “positive” people! You will find some of your friends will think you are “silly” to consider property investment.
5. Have fun – this real estate business is serious – you must treat it so, but remember to have fun Property is a great and fun way of securing your financial future.
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
Join over 10,000 readers each month.
FREE subscription http://www.PropertyUpdate.com.au
You must be logged in to reply to this topic. If you don't have an account, you can register here.
