What is your research workflow before buying?

Discussion in 'Property Information Resources & Tools' started by Zimplestiltskin, 14th Jul, 2020.

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  1. Zimplestiltskin

    Zimplestiltskin Well-Known Member

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    There are a lot of tools and sources of information, many different categories of information at different levels of the market. I'm trying to get my head around how people use all this information to come to a conclusion on a single property.

    Does anyone have a research workflow they'd be willing to share?

    Example
    1. Work out my budget to spend
    2. Use program x to find a list of 10 suburbs with the highest demand to supply ratio in VIC and NSW
    3. Narrow list down to 3 suburbs that have not had much growth in the past 5 years but have had average growth historically.
    4. Investigate properties and suburbs in person
    5. Track suburb sales for 3 months to build a small "model" for pricing and market
    6. Buy a house underpriced based on your model.
     
  2. The Y-man

    The Y-man Moderator Staff Member

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    1. Work out budget - consult mortgage broker
    2. Search within ~30km of my home along rail lines or major bus routes for either price wave (demographic wave) or $/sqm value
    3. set up search and notifications
    4. keep eye on auctions (unless it is already private sale).
    5. Inspect if it has passed in at auction and looks good
    6. make offer
    The Y-man
     
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  3. The Y-man

    The Y-man Moderator Staff Member

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    2 things people will notice about this (and send some into a tailspin) - timing (and not "time in") is everything and I buy in my neighbourhood

    The Y-man
     
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  4. Zimplestiltskin

    Zimplestiltskin Well-Known Member

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    I think it's a really good strategy that may not be workable outside a 30km radius from your home since you're relying on properties that fail at auction. It needs to be quick and you need to be able to see it.

    You're working on getting value from error in a low population of buyers. You could get as high as 10% CG by signing a page.
     
  5. Mumbai

    Mumbai Well-Known Member

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    Any reason why wait for the property to passed in, rather than just bid at the auction?
     
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  6. The Y-man

    The Y-man Moderator Staff Member

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    Good question. My logic:
    1. Market has been defined - I am not (necessarily) out to "buy below market" like most spruikers seem to be able to. I just want to buy at a "fair price". No better way to "let the market speak" and establish that "fair price" than an auction.
    2. I don't get the "Did I pay too much" remorse. The market has spoken.
    3. I want to deal with a seller who's expectations have been moderated by an unsuccessful auction - I offer them an opportunity to sell above the PI price they achieved at auction.
    The Y-man
     
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  7. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    While I get the logic - thinking these suburbs will revert to their average... given both NSW and Vic have been booming the last 5 years, using these criteria you're literally searching out under-performers.

    Unless there's a specific fundamental reason why these suburbs will stop under-performing and start outperforming, I feel like this strategy is flawed.
     
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  8. Zimplestiltskin

    Zimplestiltskin Well-Known Member

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    Yes fair enough, that's just an example of a workflow layout. At this point I'm trying to work out one.
     
  9. MTR

    MTR Well-Known Member

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    market conditions critical
     
  10. What does the fox say

    What does the fox say Active Member

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    Interested to understand how you shortlist the suburbs you feel will outperform the national average?
     
  11. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    You can see my exact research and shortlist process here :) - Attention: Property Investors!
     
  12. datto

    datto Well-Known Member

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    Can you call the flip of a coin research?
     
  13. What does the fox say

    What does the fox say Active Member

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    Seems a little too cheap to give away the golden goose :)

    Can I ask what data tool you use?
     
  14. Jess Peletier

    Jess Peletier Mortgage Broker & Finance Strategy, Aus Wide! Business Member

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    Haha - there is no golden goose - just research fundamentals, and a step-by-step method to make sure you don't skip anything important. ;) (Bet you never expected to hear that, right?!)

    Not a huge fan of external data, much better to understand how they come to the number IMO. Looking at the valuations that RP data/corelogic etc data spits out, and how inaccurate it is, has put me off ever relying it for buying decisions.
     
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