Reply: 2
From: Michael Yardney
To help you determine what you call Fair Market Value or more importantly to help you know when you have found a bargain, I suggest you initially focus your time and efforts to a narrow market area.
Then develop a “comfort zone” using as follows:-
1. Establish a Geographic Territory
Decide where your investment zone will be. Begin with an area which has a long history of high capital growth. Also look for areas which offer good rents, a low vacancy rates and a high desirability factor for people to live. And of course the area must that contains affordable properties.
2. Become an expert in that Territory
Learn all you can about your chosen territory : -Price ranges, Rental market data, Future road plans, Future developments in the planning stage, Local employment statistics, Employment trends and major impacts that may affect them, Local private & public schools – VERY IMPORTANT IN MELB, Public transportation routes, Local council town planning and zoning rules and regulations.
If I were you, starting to become an expert in my comfort zone, I would get to see as many properties as I could, fill out as many of these as I could until you know the area like the back of your hand.
I’d carefully analyse 100 properties before I would feel comfortable that I knew an area well.
3. Act on Opportunities
When you get the feel for your comfort zone, there will be a sudden shift of what you actually see. You will know when you have found a bargain, take advantage of the opportunity.
Have a great week... make it a great week!
Michael Yardney Metropole Properties