Property research can be daunting, especially for first-timers, you just never know where to start. Luckily two property gurus and self-proclaimed data nerds lay the groundwork for smart investing.
In a 154-paged report, Property experts Arjun Paliwal and Kent Lardner, explained their processes of data shifting, coming up with 4 key things that ultimately helped them identify the best markets.
Inventory levels look at the combination of sales averages and numbers of active listings online. “Low inventory number equals more market pressure” as more people can sell faster on the back of a surge in buyer demand.
Vacancy rates are a reflection of all the available properties in a rental market. Are properties still vacant after three weeks of advertisement.
According to the two gurus, a vacancy rate of 0 to 1 per cent spells a rental crisis. The next range of 1 to 2 per cent represents a tight market, while the 2 to 2.5 per cent range signifies a “tighter” but balanced point. Mr Paliwal noted that anything above 2.5 per cent is when the caution alarm should go off.
In short, what investors need to pay attention to is the median price of the advertised rental and the percentage changes – looking for those rising rents.
Days on market
This looks at how fast a property is selling in comparison with historical data. Investors need to analyze how fast a property would take for it to sell.