The 5 most important things to research
1. Is the economy in the right stage of the cycle?
Macro economically we need to determine if Australia’s whole economy is in the right stage of the cycle.
2. Which states are in the best growth phase?
Not all states are in the same cycle. We need to identify the booms and downturns of each state.
3. Which areas within those states?
Just because a state is going ahead, it does not mean everywhere in that state is booming. We need to identify the 6 key fundamentals: Demographics, Infrasctructure, Employment, Population Growth, Yield and Supply and Demand.
4. Which properties are in the highest demand by owner occupiers?
We need to identify the properties that are in the medium price range as this is where the greatest demand is. We do not want to over capitalise on an expensive property that does not have a good yield.
5. Is the price right? Is it likely to outperform the market?
Finally, we need to compare the properties against other properties that have sold in the area to make sure we are getting value.