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Gotta love the GC. :) Currently we only recommend property purchases in Sydney, Melbourne, Brisbane and Perth. Not to say other cities are not good, just that our criteria include employment opportunities for potential tenants. Kind regards, Steve

Hi Ms Jade, Your comments and investing rationale is good. :) I update the heat maps quarterly as the data comes out from Residex. We supply this info at no cost to our clients. Kind regards, Steve

Hi topcropper, You are spot on actually! Rental Reality is all about not overpaying for an asset. Nobody can tell the future. :) What I am suggesting is that the heatmaps will give an accurate indication as to when to buy, within Rental Reality value and then it is anyone's guess as to...

Hi Virgo, The Y-axis represents the 'variance' from Rental Reality: in other words the further you are from the true value of the asset. So the lower the number trending toward a negative- indicates a buying opportunity and the higher numbers trending towards less of a buying opportunity. As...

Hi Stefan, On behalf of all of us - MERCI BEAUCOUP I also wish to add that thanks to your good work, it is evident that there have been many buying opportunities in the time period; if one had been prepared to diversify their purchases between the capital cities. Kind regards, Steve

Hi Rixter, Thanks for that I am happy to have contributed to your success. Yes I will be presenting in all the major cities between Nov and Feb; however I will not be spamming or touting for business, nor posting any sort of advertising on this forum! I will contribute educational articles...

Hi Ali, No, Rental Reality does not incorporate interest rates: A property will attract a market rent based on the desirability and attributes of the property itself. Market rental affordability takes into account the effect of interest rates. What I am suggesting is that property prices...

Hi Silverx, Sorry, I only research the major cities :( Regards, Steve

Hi Stefan, Yep, I have my guys working on producing the graphs. Thank you so much for sharing the idea, I believe it will be exceptionally valuable in demonstrating how effective the methodology has been based on the historical data. I am also working on collating the Capital Growth...

....and for Adelaide, Perth Melbourne and Canberra too! Please :)

Residex provides yearly yields per post code, on request. Cheers, Steve

Hi StefanA, Thank you, your graph is a brilliant illustration of the point that the heatmap demonstrates. (With your permission, I might use exactly such a graph in my seminars!) It makes perfect sense to ONLY buy in the one city, in this example Brisbane, just 14% of the time. This gives the...

Hi JWR, Rental Reality can be applied for an individual post code. Ultimately the property will either be within the RR price range which represents a buying opportunity, or out of RR range (too high) therefore not a buying opportunity. All suburbs have their good and less good points and...

You are correct and the interesting test is if one had purchased at the dark green indicators; then if you compare median house prices for Sydney 5 years after the event, you will see the resultant Capital Growth.

Rents do lag, hence using the 5 year average yield per post code and comparing that to the current obtainable rent. All price to earnings calculations contain a market lag effect, this is reflected in the transition between colours. Does Ausprop trade in milk :p Regards, Steve

Correct, however moving towards a transition stage and at these levels, still represent a buying opportunity albeit not as enticing as the darker green. Note that the annual yield is a moving target and that ultimately property is a long term growth asset. Thus, even if one did...

Andrew states it perfectly :) The green is an indicator to buy; the red not to buy and the shades between are transition periods. So the darker the green gets, the better becomes the opportunity to buy. Never buy when RED or transitioning to red: This means the market is overpriced...

Hi, I thought I might share my 'Heatmaps©' that indicate when and where to buy, with the group and open up this methodology for discussion. The 'Heatmaps©’ are generated by applying ‘Rental Reality©’ to the moving average 5 year yield. Your comments, Regards, Steve PS...