Shimmering beaches, cute koalas and Hugh Jackman – these Australian clichés just aren’t cutting it anymore. As our nation morphs at an accelerating pace, we need to ride the wave of socio-economic change. Whether you’re knee-deep in urban planning, investing in real estate, or simply curious about your homeland’s transformation, this analysis based on Australia’s … Read more
The non-residential building sector plays a vital role in shaping Australia’s economic landscape, reflecting the government’s commitment to investing in infrastructure and amenities. As such, understanding the trends in non-residential building approvals can provide valuable insights for real estate professionals and property investors, allowing them to make informed decisions and capitalize on emerging opportunities. In … Read more
Estimated reading time: 10 minutes As we live in an increasingly data-driven world, it has become increasingly important for real-estate investors to be able to accurately predict the future worth of properties in a suburb. More and more algorithms are being developed which can forecast house prices. But have you ever wondered how accurate these … Read more
When it comes to making sound investment decisions in the property market, it is wise to learn how to analyse real estate market data. This will help you to identify profitable opportunities and avoid potential pitfalls. There are multiple free data resources available that can help you with your market research. Using a search engine … Read more
Unlike with other goods and services that have a fixed price per unit, each sold property is always priced differently.
Furthermore, there are no transaction prices every month/quarter on the same property. Instead, there are infrequent transactions on diverse properties.
This results in noisy and unreliable data if we chose to rely on simplistic indices such as Median Price.
In this article we explore the solution to this problem and describe the methodologies used.
The Index of Relative Socio-Economic Advantage and Disadvantage (IRSAD) is a geographical index published by the Australian Bureau of Statistics that ranks areas in Australia by socio-economic factors.
In this article we explore how IRSAD relates to house prices in Australia.
Explore an interactive map that shows IRSAD decile scores for LGAs in Australia. The higher the score (dark orange), the better off is the area in terms of its’ socio-economic status.
In part 3 of our blog series, we highlighted the benefits of GRC feature. In this post we will provide an overview of the last 2 tabs on the LGA pages. Heatmap tab is a different way of presenting the GRC information in that it permits clients to look for meaningful relationships between areas and find growth clusters in terms of their rate of change. It permits for a bird’s eye view of the council area that not only highlights the geography of growth, so to speak, but also enables customers to ascertain growth corridors within a particular locality that might possess better market fundamentals and thus be of higher investment grade. The red indicates negative YoY growth while green highlights positive YoY growth.
Determining market fundamentals from ‘behaviour of the curve’ i.e. forecasts from Part 2 in this blog series is not always sufficient. It becomes pertinent only when considered alongside the rate of growth for an area. This information can be obtained from Growth Rate Cycle tab, which we will focus on in this post.
The GRC (Growth Rate Cycle) represents the rate of growth change in median value and is a little different to the ‘property clock’ which has predominantly been used by investment professionals to determine the position of the area in a cycle. The best way to highlight this difference is to explain the philosophy behind the GRC and the property clock cycle notions…
This notion has always been the gold nugget of property investing. What it essentially means is that one realizes profit or capital gain upon purchasing the property because the value for which it was acquired was less than what the property is ‘actually’ worth.
However, the term is a little obscure because the real or ‘true’ market value of a property is realized upon the sale of that property; essentially we do not know how much a property is worth and what its ‘market value’ is before it is sold.
This means that buying ‘below market value’ is more a matter of opinion than it is a matter of fact—that fact that a property sold for less than it is worth cannot be objectively determined as one has no avenue of knowing and subsequently having a widespread consensus on the plausibility of the two figures (i.e. the actual worth of a property and the selling price).
In response to the above, at HtAG, we offer a little bit of a different take on the buying below market value notion. Firstly, by focusing on real time data used in highlighting investment quality of suburbs, one deals with what has been one of the major issues with the property advisory sector, namely the gaps in the subjective opinion of advisers and the advice given on the back of conflicting interests…