Hi, Just wondering what does everyone do to conduct their own suburb due diligence? I focus on renovations/developments and I find myself spending a considerable amount of time doing up a big spreadsheet in an attempt to track trends in supply and demand for that suburb. Is there an easier or quicker way? I know there are companies (eg: RPData, AMP, SQM & Residex) and commentators who sell this type of research but as a professional property investor, should one take their research as the gospel truth? Thanks in advance.
I am just starting to go through the suburb due diligence in preparation of an investment property purchase.
My current thinking is to cross analyse the suburb information from those companies and other sources looking for consistency. I will then do my own research, looking at the various statistical websites available and speaking to people within the suburb to confirm the information I’ve obtained.
In the end it is your business and your money, although it is important to leverage of other people’s time and money, it is ultimately up to you to make informed decisions about what you want to do. I personally try to get the best understanding about each element of my investing and then using the appropriate resources and professionals to help me along my way.
Just my 2 cents worth.
Hi, Just wondering what does everyone do to conduct their own suburb due diligence? I focus on renovations/developments and I find myself spending a considerable amount of time doing up a big spreadsheet in an attempt to track trends in supply and demand for that suburb. Is there an easier or quicker way? I know there are companies (eg: RPData, AMP, SQM & Residex) and commentators who sell this type of research but as a professional property investor, should one take their research as the gospel truth? Thanks in advance.
There are loads of moving parts to my system. It has been developed over more than a decade. There is no quick easy way to just magically understand everything and know all. Regarding Data – there is no gospel except the gospel, so you need to accept it is good but not perfect. There are several paid options which are debated and reviewed on the forum (see group Pricefinder access thread or PM me if you want to pursue that software). Measuring all your own sales records manually is just not feasible unless you have loads of time and covering a small market.
BuyersAgent | Precium
http://www.precium.com.au
Email Me | Phone MeSouth Coast NSW Independent Buyers Agent - Wollongong to Batemans Bay and Regional NSW. DOWNLOAD OUR FREE 14 POINT PROPERTY BUYER'S CHEATSHEET to avoid painful mistakes at precium.com.au
I believe that those web site is a great way to start. However, having read Howard Marks the most important thing, you must asked yourself if other investors also have access to those web site what will give you your competitive edge (second order thinking)? To make money in the market you must be a contrarian, be right, and the convection to act.
I take the valuations of net based research tools with a grain of salt. Don’t know what algorithms they use, but they’re definitely inaccurate on some I’ve looked at. They are useful for sold prices and dates though.
I take the valuations of net based research tools with a grain of salt. Don’t know what algorithms they use, but they’re definitely inaccurate on some I’ve looked at. They are useful for sold prices and dates though.
They’re definitely not always accurate 100% of the time, but can still play a valueable role in getting an understanding of a properties value – so much so that they’re used by a lot of lenders to value properties for lending. (Residex and RPData in particular).
We use Residex in the business a lot for both our research and for clients want further data in their property searches – I think it’s worth it’s weight in gold.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
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