All Topics / Help Needed! / I have found the info – But what does it mean?

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  • Profile photo of PGDPGD
    Member
    @pgd
    Join Date: 2010
    Post Count: 28

    Hi all,

    I read books on a number of different subjects. These books always talk about "…doing your research"  "…complete your due dilengence effectively" "…make sure you understand your market"

    But, that's where it stops!

    I would like to know HOW to do that research? AND more importantly how to UNDERSTAND what I have found!

    In the case of property investing,

    – Where are the places to go?
    – Why am I going there?
    – What am I looking for? 
    – How do I use this information?

    For property investing, are there any books which focus completely on how to perform research and how to interpret the information you have found to make decisions?

    Mario

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Hi Mario

    Here are some things to start with:

    Get your hands on a copy of Australian Property Investor magazine and become familiar with the tables on the back pages that show capital growth, rental yield, and vacancy rates.  These are important statistics and will help you choose a suburb to focus on.  It is also said that if you find a suburb that has already boomed in terms of capital growth, its neighbouring suburbs are probably next.

    There are plenty of websites that would come in handy for things like viewing historical sales and rental figures (http://www.rpdata.com).  You'd also want to find demographic information to understand "who lives in the suburb".  eg is it predominantly young professionals, and if so, what kind of property are they insisting on?  You'll also want to try and identify if there are certain property types that are in demand but short supply.  For instance, if there are lots of families renting in the area, and they want 4 bedders, and there are hardly any available for rent, that might be the direction you take.

    Another place to do your research is on the council website, and talking to the town planners, to understand what is "in the pipeline" for a suburb.  For instance, is there a new train station or train line on the cards?  Or perhaps a major shopping centre or new major road?  Follow the infrastructure, they say.

    I would love to be able to read all about the Coles or Woolworth plans… ie where are they opening new stores?  Because they will have already spent a big wad of money researching to ensure they have a customer base in the area.  So why not piggyback all their hard work and just copy what they are doing ;-)  I've yet to hunt down a source of such information.

    Obsessively monitor http://www.realestate.com.au – the sales and rentals pages, for your suburb.  Go to a bunch of open for inspections – both for sale and rent.  Then you will come to know what costs what, and how long the stock takes to get snapped up.  If rentals are staying vacant for ages, that isn't a great sign.

    Hope this gives you a start!

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856

    I like department of planning website, census data or bis shrapnel reports. Good indicators of what’s approved ie zoning changes, where the growth is planned & how long before it hits the fan.

    Profile photo of TiffanyGTiffanyG
    Member
    @tiffanyg
    Join Date: 2010
    Post Count: 34

    Hey Mario,

    I feel the same way as you!!! All you hear is about how you have to do your research but where do you find all the info :(

    Great post JacM :)

    Profile photo of PGDPGD
    Member
    @pgd
    Join Date: 2010
    Post Count: 28

    Hi guys,

    Thanks for the links. They are great resources for getting the info.

    Now lets talk about how I should use this information.

    I need to understand why a piece of information is Good or Bad in reference to being a property investor.

    For example JacM has a really good post above. It tells me what information to look for and where to find it. 

    Quote  "….is there a new train station or train line on the cards?  Or perhaps a major shopping centre or new major road?  Follow the infrastructure, they say."

    But, is this good info or Bad info? and why?

    Making good decisions is based on your ability to understand what you are looking at and how that influences your preferred method of investing.

    Hope I am making sense. I just want to put all the hours of researching and finding all this lovely information to good use.

    Mario

    Profile photo of Jacqui MiddletonJacqui Middleton
    Participant
    @jacm
    Join Date: 2009
    Post Count: 2,539

    Infrastructure is good.  If the government is going to make it easier for residents of a township to get to work and so on more efficiently with major roads and train lines, that is good.  Of course, you don't want your property bang next to the freeway listening to loud trucks all the time.

    The only time people get upset about new roads is when they are a small cutesy holiday township and they worry the quaintness will be ruined when trucks start travelling on a nearby route.

    Think about what YOU would require nearby to a house if you were going to live in it for a while.  Would life be convenient without nearby roads, rail lines, schools and shops?  I doubt it.

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
    Email Me | Phone Me

    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of PGDPGD
    Member
    @pgd
    Join Date: 2010
    Post Count: 28

    Thanks JacM,

    I would expect there are a heap of other research items that will need to be understood including infrastructure.

    This ability to interpret your findings walks hand in hand with understanding who your target market is.

    I attempted to bring this subject up in a past post.

    There are obviously different types of renters out there. Each with there own 'Hot Buttons'. The things that catch their attention and are willing to pay a premium for. 

    Understanding these 'Hot Buttons' will begin to highlight the product (type of residence) you will need to provide.
     
    With this information in the forefront of your mind, you will immediately recognise an opportunity when it presents itself.

    Mario 

    Profile photo of mrmonopolymrmonopoly
    Member
    @mrmonopoly
    Join Date: 2010
    Post Count: 15

    ’20 Must Ask Questions’ by Margaret Lomas is a good starting point.

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    mrmonopoly wrote:
    ’20 Must Ask Questions’ by Margaret Lomas is a good starting point.

    Yep, it’s a good read. Some of these links may come in handy as well – http://www.passgo.com.au/property-data-websites

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

    Profile photo of shawnjaspershawnjasper
    Member
    @shawnjasper
    Join Date: 2011
    Post Count: 9

    Yeah, that's what it always say but all I do  is just pause for a while and know what my subject is about and just find a good keyword to search the web and there it is. But sometimes it takes so much more reading for me to really understand about the topic.

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