Aug 20, 2018
Have you ever wondered how property professionals do their research?
If you’re interested in finding properties that will outperform the market, this episode is for you.
The most research many property investors do is finding a property that they already like, then looking for information that confirms their biases. However, sophisticated investors take a more strategic approach.
Today, Kate Forbes, National Director of Property Strategy at Metropole, gives us a detailed picture of how the professionals at Metropole do their research.
Metropole’s top down approach
This starts with examining the macro factors affecting our property markets and drills down to the micro level.
6 Stranded Strategic Approach
Only buy a property:
By following my 6 Stranded Strategic Approach, you minimise your risks and maximise your upside. Each strand represents a way of making money from property and combining all six is a powerful way of putting the odds in your favour. If one strand lets you down, they have two or three others supporting their property’s performance.
When you look at it this way, buying a property strategically takes a lot of time, effort, research and something most investors never attain – perspective.
What I mean by this is you can gain a lot of knowledge over the Internet or by reading books or magazines but what you can't gain is experience. It takes many years to develop the perspective to understand what makes an investment grade property.
Links and Resources:
Some of our favourite quotes from the show:
“We’re not looking for properties that are affordable to everybody, we’re looking for areas where people have got a high disposable income and can afford to, but more importantly are prepared to, pay a premium.” – Michael Yardney
“If you buy a property to which you can add value through renovations or refurbishments, that will allow you to add some capital growth.” – Michael Yardney
“Understanding the neighborhood is not the same as understanding the market. You may understand where the shops are and where the school zones are, but that’s very different to understanding the depth of the market.” – Michael Yardney
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