I am reading this book, and man I got discouraged when I read this it says,
As a general rule, the following is the recommended time to dedicate to area and location research: Basic: 50 hours
Standard: 200 hours
Advanced: 500 hours (Yep – to be a master you need to put the hours in).
What the hell do I do for 500 hours? I can’t imagine my self researching a single area for that long, wouldn’t it be better idea if you just get someone to do that for you? Sorry if I sound lazy but it just seems like an unbelievable amount of work, not saying I won’t do it but just the thought at the moment is a bit overwheming.
Do you think this is too much or sounds about right?Nigel KibelParticipant@nigel-kibelJoin Date: 2005Post Count: 1,425
Well when I research an area I go to as many opes as I can and go to Auctions
I also tract how long properties are on the market for. The longer they are on the market the more they are open to offers. So I do not put a time limit on things. I could learn a market fare quicker than someone starting. However it also depends on why you are buying. If you are buying for a long term hold then even if you pay a little over the odds it may not matter depending on the area of course. However if you are buyer to renovate and on sell you are speculating. So the profit is often in the buying. You pay to much you can lose money. So spending time in an area and understanding the market is essential,Tony FlemingParticipant@the-dark-knightJoin Date: 2008Post Count: 396
As Nigel said I would be going to as many open homes and auctions in your targeted area to see what buyers are paying and looking for. You’ll also get an idea of who the good and bad agents are. Target the bad ones for buying and the good ones for when you sell.
Apart from that these days there are a number of online programs to make researching suburbs easier Rp Data, Pricefinder, SQM and ABS. Some of the sites you need to pay for but the amount of data you get is essential. Once you’ve done the initial research it is more about staying up to date with current sales.
That’s why people pay us Buyers Agents to do the legwork!Ethan TimorParticipant@ethantimorJoin Date: 2016Post Count: 282
Agree completely with the comments above except this bit:
However if you are buyer to renovate and on sell you are speculating. So the profit is often in the buying.
I understand where Nigel is coming from but renovators-buyers are not speculators, I reckon. Buy well (that’s always good), renovate well (what to renovate, how, budget, comparables) and get a good profit when selling, even if the market didn’t move at all during that time. That’s not speculation, is it?Nigel KibelParticipant@nigel-kibelJoin Date: 2005Post Count: 1,425
Ethan its speculation from the point of view that if you buy an investment and hold for 10 years we know from history that values will go up and perform well. All the things you have said I agree with however why its speculation is that I study markets all the time but no one knows what may happy in the next 12 months. If there is a correction in the next year or two even if its only mild then you could see the profit go. My suggestions is if you are looking at this strategy be prepared to hold the property if you have to. If its in a good area you will not go wrong. I consider 2-3 years to be speculative because short term is impossible to predict.Guest
Thanks for the info guys.