Investment property research: the power of data and insights

Investment property research: the power of data and insights

Thinking about investing in property? Real estate can be an exciting yet challenging investment opportunity.

National median dwelling values have increased by 6.8% annually over the past three decades, according to Property Update. Property also has many tax benefits like negative gearing and landlord tax deductions.

But as with any investment decision, property requires careful research.

In this article, Picki co-founder Jacob Field discusses how property data can make you a more informed investor.

Understanding property buying research

Jacob said when it comes to buying a property, whether as a homeowner or an investor, research plays a crucial role.

"The approach to research may differ depending on the buyer's objectives."

"For those buying a property to live in, the research may focus on factors such as building materials, floor plans, and personal preferences."
"On the other hand, property investors tend to prioritize hard numbers and financial considerations, such as yield, property value, and potential for growth," he said.

Layers of investment property research

Jacob said it is important to consider different layers of analysis to property research, including at the suburb and street level.

Local Government Areas

Start by examining the local government area (LGA) where the property is located.

"Look for factors such as employment opportunities, population growth, and new infrastructure developments. These macro-level considerations can significantly impact the performance of the property," Jacob said.

Suburbs within LGAs

Within each LGA, certain suburbs may be leading the area's growth and development. Identify these suburbs that are driving the momentum and attracting investment.

"Key metrics to consider include days of supply, rental yield, vacancy rate, and days on the market. These indicators provide insights into demand and supply dynamics within specific suburbs."

Street-Level Intelligence

To gain a comprehensive understanding of a suburb, it is crucial to analyze street-level data. This level of research often goes overlooked but can provide valuable insights.

Consider factors such as public housing, rental yields, owner-occupier percentages, and in-demand property types. By examining these street-level details, you can identify areas with high growth potential and desirable living conditions.

Property-Specific Analysis

Finally, it is essential to analyze the specific property you are considering. This is where the rubber meets the road. However, property buyers often face limitations due to the lack of comprehensive data provided by vendors.

To overcome this challenge, it is crucial to gather data that may not necessarily paint the property in the best light.

Key data points to consider include property value, vendor distress, days on the market, and any price discounts. Additionally, assess the growth and rental income forecasts to make informed decisions.

Running the numbers on your investment

When conducting property research, it is crucial to run the numbers and build a financial model. While there are numerous factors to consider, here are a few key numbers to plug into your spreadsheet:

1. Rental yields

Rental yield is a critical metric for property investors. It indicates the return on investment based on the property's rental income. Higher rental yields are generally more attractive to investors.

2. Recent property price movements

Assess the recent performance of property prices in the area. Look for markets that have consolidated and formed a strong base. Slower recent performance can be a positive sign, as it indicates potential for future growth.

3. Increasing Income and Sales Volume

Monitor income trends in the area and assess whether they are increasing. Increasing income attracts more attention and can drive property demand. Additionally, look for increased sales volume, as it confirms the market's positive trajectory.

Educating yourself for effective research

To become proficient in property research, self-education is key. Here are a few ways to enhance your knowledge:

1. Podcasts and Shows

Listening to podcasts and shows dedicated to finance and property can provide valuable insights. These platforms often feature experts who share their knowledge and experiences.

So You Know is a finance and property podcast by UNO. In each episode, we are joined by an expert who unpacks a topic in fifteen minutes or less to keep you in the know.

2. Books and Publications

Delve into books and publications that cover property investment and research. These resources can provide in-depth knowledge and help you develop a comprehensive understanding of the subject.

1. Online Platforms

Take advantage of online platforms, such as Picky, to access comprehensive property research data. These platforms offer a wealth of information and can help you make informed decisions.

The power of Picki

UNO has partnered with Picki, a leading property research platform, to empower property buyers and investors.

Picki provides access to comprehensive data and insights, allowing users to make informed decisions. By leveraging the Picki platform, property buyers can gain a competitive edge and navigate the market with confidence.

Implications and future outlook

Effective property research can significantly impact the success of property buyers and investors. By analyzing various layers of data and running the numbers, buyers can make informed decisions and mitigate risks. The democratization of data, as facilitated by platforms like Picki, empowers buyers to access comprehensive information and level the playing field.

Looking ahead, the future of property research is promising. As technology continues to advance, buyers can expect even more sophisticated tools and platforms to aid their research efforts. The availability of comprehensive data and insights will enable buyers to make smarter investment decisions and achieve their financial goals.

By applying different layers of research and running the numbers, buyers can make informed decisions and maximize their investment potential. With the help of platforms like Picky, property buyers and investors can access comprehensive data and insights, empowering them to navigate the market with confidence. The future of property research looks bright, with advancements in technology promising even more sophisticated tools and resources for buyers. So, whether you're a homeowner or an investor, conducting thorough research is the key to success in the property market.

Property buying research is a multifaceted process that requires careful analysis and consideration. You should always speak to a professional before making any financial decision.

Information in this article is general in nature and does not constitute personal financial advice.