Expert Bust #33 How Many Opens to Attend

I've heard more than one educator/expert/spruiker say you should inspect 100 properties before making a decision. I guess their idea is that you become familiar with what's out there and how much it sells for.

It sounds like good advice, an extreme dedication to research. But it actually telegraphs inexperience.

A good market is one in which supply is limited and demand is high. In markets like that, you can't find 100 properties for sale. And if you wait 6 months to eventually see 100 come and go, prices would have moved on.

Stock on market for most suburbs for the last decade have been around the 1% mark. Anything above 2% is cause for concern. Hot markets get down below 0.5%.

The typical count of houses for suburbs within the top 20 significant urban areas of Australia is around 300. If there were 1,000 houses in a suburb, that's a fairly big suburb. 1% of 1,000 is only 10 properties.

Clearly, to say 100 means the so-called expert has never really done this themselves, they're just showboating. Or they're planning to buy in a heavily oversupplied market. Either way, the numbers show they're no expert.

 

Nice post ... I daresay that's part of their sales campaign to pay them for their 'expertise'. Inspecting 100 properties seems a bit arbitrary, more inspections =/= better capital growth outcome...