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That sounds like a reasonable idea, although I don't really want it to accurately reflect current values across all suburbs as its usefulness would then be limited. Instead I'd prefer it as a tool to identify possibly under and over-valued areas in an imperfect market. So in this case...

What you get is as important as what you pay All true. However the object of all this is to arrive at a tool for identifying and comparing value of places based on a small number of easily ascertainable factors. It is not necessarily a method to predict what's going to boom in the...

Heidelberg vs Kew (weighted): The factor that did it for Heidelberg was tree cover, though on reflection I was probably too harsh on Kew. On every other factor Kew was equal or superior to Heidelberg. The above indicates that doing things by suburb is really not precise enough, especially...

While Caroline Springs, Doveton and Wantirna look like duds. Doveton was probably harshly treated because its proximity to Dandenong was not factored in while Wantirna was disadvantaged by the transport formula only being for public transport (and not roads like Eastlink). Unless there are...

DavidMc, Of the six factors, tree coverage is the 'odd man out'. I wanted some factor to explain why when all other facts are equal, the eastern suburbs are dearer than those to the north or west. Eg a suburb 30km east might be a similar price to one 20km west of the CBD. Tree...

Here's a repetition of the above but with weighting. Proximity to CBD, proximity to water and tree were given double importance with a x2 weighting. Broadmeadows $346,671 Brunswick $533,340 Carnegie $506,673 Caroline Springs $213,336 Chelsea $506,673 Cranbourne $240,003...

Equal weighting of all six factors has given the following figures which were both hastily done and rubbery. Broadmeadows $400,000 Brunswick $560,000 Carnegie $560,000 Caroline Springs $240,000 Chelsea $520,000 Cranbourne $320,000 Croydon $440,000 Dandenong $360,000 Doncaster...

Yep, fair point. I implied some weighting in my initial post (by seperating the three biggest and three lesser contributors to suburb value) but didn't carry this through in the previous post. This was partly due to slackness and partly due to wanting to see how it would work with equal...

Part II: Calculation of ratings for each factor Thanks for all the nice comments and PMs. ...to continue from the first post.... With the basic formula described, next thing is how to do the ratings. I'm not precise enough to reduce quite complex differences between areas to a fine...

The worry I have with retirement places is it's one-shot. You'll get one good cycle, but long term you'll have a high proportion of 'urgent' sales due to deceased estates or relocations to nursing homes. Admittedly prices will be supported by people selling up and buying in places like Rosebud...

I agree. Too much is made of terms like 'boom suburbs', 'hot spots' or 'top 100' in magazines like API, presumably to excite readers, appeal to their greed and sell more copies. This thread though is boringly different. Instead it's about buying well while accepting uncertainty and...

BV, I'm broadly aware of the demographics of suburbs, but I'm not sure that factoring it in is going to improve accuracy or be useful. This is for several reasons: 1. What measure does one use? If one is worried about crime or 'gangs', there's much more correlation between crime and...

Yep, that's the main downfall of the approach as well as how it works over time as fashions change. Plus the value attached to certain traits like proximity to water or the CBD are not constant. Eg at one time inner-city suburbs like Richmond or Collingwood were scummy low-rent areas as...

While it is true that homebuyers may shop around and compare suburbs but compared to we investors their criteria are different and are often not financially-based. Eg family or work are close by, they know people in the area, they want a child to go to a particular school, it's in the same...

Some people base their buying decisions on an area's capital growth performance. While this might work in the early stages of a boom, it is only in hindsight that people pick this. Above average performance is often not sustained (ie revert to mean), sales data is imperfect, there are...