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Market Research Tips

Discussion in 'Where to Buy' started by sliderc, 31st Jan, 2016.

  1. sliderc

    sliderc Member

    27th Oct, 2015
    I'm trying to learn more about applied property market research strategies.

    I've got a few investment properties which admittedly, I bought without doing huge amounts of Market research however have managed to, what I feel, buy stable investments while maintaining my cashflow (mostly nuetral).

    I am however still a novice when it comes to data mining, analysing trends etc.

    Anyway, Im looking to purchase again and wanted to outline what I do, hopefully to recieve some advice on how I could improve.

    I am aware of the MAP scheme, Identify Market first > Area second > Property last.

    I am one of those people that have historically bought local (alot of times this is seen as a mistake), being from the Brisbane Area (Redlands) I feel like I could be ok for now, as it seems these Markets are at the right stage in the so called property clock so I may be able to get away with that while Im still learning...will have to wait and see.

    Anyway, I have never tried to analyse the Market much, so "M", I have no experience with however not really the point of the post. I suspect M information may be a macro summary of A and P...

    Looking more at the A and P...

    When looking at an Area, the first thing I do is go on and look at the last 12 months worth of sales data for that area. I spreadsheet all the sales in the suburb, their high level detail (Bed/Bath/Contstruction/Pool/Entertaining/Land Size) and take a screenshot of the enlarged map so I can see where it is in the suburb.

    I then take the same list and compare the sale price to the estimate on, noting the + / - figure from the sale price.

    Thats pretty much it, I guess I just use RE + onthehouse to sus out the average sale prices for the area.

    The looking at the properties for sale, I do the same thing, RE details + Location + Compare against onthehouse.

    I generally then like to shortlist some sold properties, shortlist some for sale properties and then drive the suburbs to get a feel before inspection.

    TLDR: + Onthehouse - SoldHistory vs ForSale.

    Its very basic I know, like I said, still learning. Are there any other resources/data that I should be keeping an eye on?

    Ive taken a look at Pricefinder a few times however I feel like onthehouse is more accurate (for sales estimates), which I found odd consider Pricefinder is a paid service.

    Thanks everyone.