Steps to deside where to buy(Australia-wide to Suburb Level)?

What do people do to narrow down their IP search to suburb level starting from Australia-wide. Do you have a set process you follow? or just stumble upon the suburb and do research on them and reside if they suit their requirement.

I have been searching for any type of process either in a book or a discussion here. I know it will be different for different people, but something as a starting point.

One process I was told by a friend is to get residex reports (CG) for all the capitals and regional. Research these to find what you require vs can afford and maximize.

I have been spending a lot of time reading and have made up some feel for what and where i should be looking for IP,but that is just a gut feel not a proper methodical approach of research. Can somebody please share what they do or point me to the resource where i can lean from?

 

83 Views and not a single reply. Starting to wonder if this is a very dumb question.

 

Generally I find I have a strategy in mind, and once I know that, it usually follows that I know exactly where I want to start looking. Do you have a strategy?

 

I think i do. This strategy can be applied to lot of states and suburbs. I was wondering how do yo go about narrowing your search down to suburb or two level.

 

Some people like chicken and some like beef!!

Seriously though it really depends on what you need from that property that will determine your search method.
Are you looking for CG or Cash Flow?

 

Well tell us where you will be looking at and why. Then tell us why you're looking at a certain type of property or what criteria you have.

 

Well all things being equal you might as well start locally?

 

Not a dumb question at all, determine your strategy then a starting point might be reading Margaret Lomas's 20 Must ask questions.
This will give you a basic framework of what to consider and will allow you to work from the macro to micro.
Many of the areas I have considered I can discount fairly quickly based on these.
Places that have recently boomed I'm not interested in for the time being.

When it comes down to one suburb or another unless something stands out, like one being considerably cheaper than its neighbour I'm more interested in the best opportunity in either.

I've recently read Grow rich from the property cycle by Kieran Trass which was a little different from most property books I have read. Worth reading

 

Going from macro to micro, I generally look at the economic drivers of the state and if I would be happy investing against those economic drivers - eg, Perth coming out of mining, SA car manufacturing slowing and mining (to a small extent) etc. Then look at Herron Todd White monthly reports and look at different areas of the investing tab of www.realestate.com.au . As others have said, your strategy needs to drive your approach so someone looking to develop would have a different approach and look for different factors compared to someone looking for a long-term buy and hold.

 

Looking for CG at least for the first one or two.

 

I am reading a lot about about Melb and Syd being a no go zone.

 

You could choose your state, then go to realestate.com.au then hover over the suburbs until you find the CG you're looking for

 

Thanks i with go through those.

 

Everyone has been through this phase. These steps have helped me when I was in your shoes:

Read: go through everything you can get your hands on.
Listen: listen to every Tom, Dick and Harry (don't spend money or as little as possible)
Think: think about what you read and heard. Think how it can help you reach your goals.
Act: this is the most important part. Make sure you act. Don't go into Analysis paralysis or procrastination stage.
Repeat: if it worked out, do it again. If not repeat the steps.

 

So that means you need to refine your strategy! Exclude those cities if you want, and then look again. Rinse, repeat, refine and you should find you're getting somewhere!

 

@raj_27

As @HUGH72 has mentioned a great place to start is Margaret Lomas's "20 Must Ask Questions" as per below

 

i read the "20 Must Ask Questions" as well and used a few of her techniques at the start. PC discussions on places to invest in (states/suburbs) is also a good starting point. I think if you just keep learning, you will reach a point where you will be comfortable enough to formulate your own steps in doing your DD from macro to micro. In your case, you already have a plan in place and you are just having second thoughts about it. Why not run it through a few people that has reached the goal that you are aiming? Or post your strategy so others can comment on it to improve it.

 

In general we adopt the "follower" approach which involves listening to what everyone is saying and then qualifying it for our circumstances.

Somersoft was a great source for this and largely lead us to granny flats, Western Sydney and areas in Brisbane. All of which we have been happy with - definitely not the first in the door, but still ahead of the maddening crowds.

 

Thanks everyone for the suggestion,I really appreciate that. I will be back with more specific questions.