Initial Research for IP

[bennos]

Initial research before the detailed stuff, what do you think?

Step 1. Domain website to do a property report suburb profile. In there I look at:
• Exactly where the suburb is located
• The indicated long term trend (suburb vs region)
• The trend chart to see which direction the suburb is moving and compares it to the region
• Demographics:
Demographics:Occupation – to see which social economic group are the likely renters
Demographics:Transport – to determine the proximity relevance to public transport (PT)
Demographics:Type of Dwelling – to determine the likely IP type (house, t/house, apt
Demographics:Nature of Occupancy – to determine if there is a real need for rental props

Step 2. Do a search here (Somersoft forum) to see what is being said or what is happening in the suburb.

How does that sound as an initial search to narrow down the suburbs to look deeper into? How else do you guys narrow down your searches?

It is really doing my head… The amount of time one can spend on researching. I’m worried of ‘Analysis Paralysis’, I can feel it creeping up on me.

 

[suffragette]

hi bennos
we're in the middle of searching for a ppor. but before we decided on one suburb, we did step 1 and step 2 (as per your post), then we started going to the suburbs, drive around, going to open inspections and talk with the RE agents to get a feel for the area, the growth, etc and also build a relationship with them so they can inform you if there's a new property on the market that might be suitable. personally, i think you just have to get out there and get a feel for it yourself. helps alot with deciding which one.

but of course, this is for PPOR... and that's what works for me

good luck!

 

[kaf]

Bennos

When I was doing my initial suburb search we splashed out on a Residex 100 top suburb report. I then bought a map of Brisbane (where we were looking), got some coloured pencils and identified the top suburbs with respect to predicted growth (or you could do growth and rental yields) to get a feel for potential suburbs. This identified "value hotspots" for me and I then had a closer look at those suburbs (with all the research you are talking about). Not sure it's THE best way of picking best suburbs but it calmed the monkey in my head saying how do you know it's the right suburb...

The monkey wouldn't have been happy with me picking suburbs after throwing darts at the map, which incidently over 20 years will probably bring the same overall CG .

Sorry I'm not making fun of the importance of research but analysis paralysis is an issue and sometimes I think research is there to manage your own emotions as much as the actual risk...

One thing to remember about Residex is that they seem to favour new development areas which wasn't where I wanted to go (prefer established suburbs) so I did take their advise with a grain of salt.

My $0.02 worth

kaf