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Unlock Property Investment Success with HtAG Analytics: In-Depth Platform Demo and Guide

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  1. Please see the video transcript below (May 2023 version).

    I’m Alex Fedoseev, co-founder of HtAG Analytics. I’m excited to introduce you to our platform. It’s designed to help you match property markets to your investment strategy more efficiently.

    Too often investors dive into searching for properties without conducting proper market analysis. That’s where our platform comes in. It saves you hours of research and guides you to the perfect markets that align with your conditions.

    To make the most out of the platform, it’s essential to adopt a hierarchical approach. Establish your property investment strategy, define the property type, budget, desired return and investment horizon. If you’re not sure how to do that, ask our Facebook or Reddit communities. I’ll add the links in the video description.

    I’ve been doing lots of one-on-one demos, so I made a pre-recorded session for everyone to see. In this demo, I’ll show you how to find a perfect silo that matches your brief quickly. Additionally, I’ll provide you with an overview of features that will help you achieve that. Rather than delving into the details of each feature, I’ll reference related videos with YouTube links. They’ll pop up on the screen when you’re watching the video.

    In case if you have any questions after watching the video, don’t hesitate to leave a comment. Our team will do their best to provide a prompt response. Now, let’s get started.

    Welcome to the demo. Today I’ll guide you through our PropTech software showcasing its features. The demo will help you understand how HtAG Analytics can benefit property investors and buyers agents.

    Let’s kick off by discussing our freemium offering. With data for over 8,000 suburbs and LGAs, both public users and members have access to the same dashboards. However, our freemium model unlocks more data and more features as you upgrade. We recommend the professional tier to seasoned investors and buyers agents as it unlocks our full data suite and includes free downloadable reports. Choose between a monthly subscription or save 20% with our six month plan.

    Now that we understand the best tier for you to join on, let’s explore three valuable resources for all users. The first resource is the education hub: it’s a go-to source for articles on crucial metrics for data-driven property investment. Our second, most popular resource is the data dictionary – it’s a handy guide to quickly understand every metric we report on including favourable, unfavourable, and neutral ranges. And last but not least, our online communities. Do you need help starting your investment journey or have a question about data? Join our Facebook group or Reddit community for quick answers and a supportive network of fellow investors. Now we will log in as a professional tier user.

    You’ll notice that the homepage looks different, offering more access to data and functionality. To quickly find your target market, use the search feature to locate specific suburbs or LGAs. If you’re looking for an LGA, just include the word council at the end for better accuracy.

    Now that you’re familiar with the search feature, let’s discuss how we structure and segment our data. All heat maps and dashboards offer two view options: houses and units. Plus, you can further drill down to city or state levels, and enable suburb views. For more details on navigating heat maps and filtering data, check out the related tutorial videos we’ve created.

    Now let’s explore a hypothetical investment scenario with the following conditions:

    budget – $450,000;
    target market – nationwide;
    minimum yield – 4%;
    and no bedroom preference.

    Before applying any filters, it’s crucial to clarify that our house and unit prices are calculated using an advanced methodology. Instead of traditional median prices, we report suburb values via a metric called typical price that is established through a process called data fitting. Our specialized approach aims to more accurately determine the current value of the property market. This method ensures that our calculations better reflect real-time market conditions. Link to the detailed video will be popping up on the screen now.

    First, enable the maximum price filter and set it to $450K. Then set the minimum yield to 4% and switch from the default councils view to suburbs. For this filter, the platform displays 377 suburb options within our budget.

    To optimize our search, it’s helpful to enable the number of bedrooms filter since the data shown by default is for all bedrooms. There is a detailed guide on how to work with the ranking table. Link will be popping up in the top right corner now.

    Now that we have applied essential filters based on our investment scenario, let’s explore how we can narrow down the list of suburbs to assess further. Begin by sorting the table by capital growth RCS. This arranges the suburbs with the highest capital growth scores on the top. RCS or Relative Composite Score is a composite metric derived from 80 other metrics. It is designed to identify property markets with promising capital growth prospects. It utilizes the metrics displayed in the table, as well as other internal metrics exclusive to HtAG Analytics.

    When considering capital growth score, it’s essential to evaluate other factors such as risk scores. While capital growth score showcases markets that may yield high long-term returns, the lower risk score indicates the likelihood of things not progressing as planned. This score considers environmental, market risk, and data quality factors. Environmental risks like flood, bushfire, and coastal erosion bear the most significant weight. For investors with a low risk appetite, we suggest setting the lower risk score to 50 or above. Repeat this process for the capital growth score, ensuring it’s also set to greater than 50. Our list is now narrowed down to 44 suburbs.

    The top three suburbs that match our budget and criteria include:

    – Mildura in Victoria
    – Nuriootpa in South Australia
    – Horsham in Victoria

    Various bedroom options are available to explore.

    To further analyse these top picks, navigate to their detailed dashboards by clicking on the suburb title in the ranking table. Upon clicking a suburb dashboard, you’ll first see a heat map that helps visualize the area’s geography. For example, Mildura is a regional suburb in Victoria, far from Melbourne. Enabling the satellite view allows you to zoom in and examine various points of interest and assess multiple factors that could influence the local property market. For example, investigate the presence of schools, hospitals, shopping centres, parks, and public transport options. Or assess potential new land releases, establish proximity to industrial zones, identify aircraft flight paths, and so on.

    Over the past year, Mildura’s house prices have experienced minimal growth, while rents have seen a more significant rise. Scrolling down, you can further examine the suburb’s fundamental parameters. Mildura’s socioeconomic rank is on the lower side, indicating limited access to economic resources. This can be a cause for concern. The renters to owner ratio is relatively high, but not above the worrisome threshold. This market primarily consists of houses with some availability of units and semi-detached dwellings in the two-bedroom segment. The yield curve is currently on the upper trend, and there hasn’t been a price decline since 2010.

    If we look at the GRC chart, search interest remains above three – a positive indicator, reflecting consistent demand for properties in the area. And moving on to the supply and demand section, while supply remains generally flat, hold periods are increasing, indicating owners hold on to their properties longer and reducing established property supply. On the demand side, days on market are decreasing, suggesting growing demand. There is limited discounting, and vacancy rates are low at 1.2% – a healthy figure for a regional market like Mildura. Although there isn’t enough data to calculate clearance rates, the occurrence of auctions in a regional market is a positive sign.

    In summary, while some fundamental data in Mildura may raise concerns, demand and supply indicators paint a positive picture. The RCS algorithm, which factors in additional data not visible on the dashboard, supports Mildura’s attractiveness as a property market for long-term capital growth. However, it is essential to compare this market with other suburbs we’ve shortlisted.

    Now let’s discuss how to efficiently compare the shortlisted suburbs. While analysing each suburb individually might work for comparing two or three markets, typically you’d need to assess up to 15 options depending on your investment strategy. And that’s where we can further narrow down the shortlist using the Excel report feature.

    To access this feature, head to the downloadable reports section under the ranking table on the main dashboard and select “Suburb Market Insights“. Complete the quick checkout process, and after receiving the download link, open the Excel file for comparison. If you’re on the professional plan, this downloadable report will be available to you at a 50% discount.

    You can then later return to the suburb dashboard to validate key parameters such as supply and demand metrics and their trends for your final suburb selections. This streamlined method allows you to efficiently analyse multiple suburbs before narrowing down your selection further.

    Once you’ve downloaded the Suburb Market Insights report for houses, you can extract the zip file and open the Excel file within it. On the second sheet, you’ll see a list of full suburbs countrywide. To compare our identified suburbs Mildura, Nuriootpa, and Horsham, use the suburb filter to select them. Let’s start with Mildura and then add Nuriootpa and finally Horsham. Now we’ll have all three suburbs listed side by side, and we can begin comparing them.

    Let’s start with capital growth RCS. The three suburbs have similar capital growth scores ranging from 80 to 88, indicating their relative positions in long-term performance for capital growth. Keep in mind that this demo assesses long-term investments (five years or above). While the Capital Growth Score ranks the suburb, it doesn’t convey its likely return. To gauge potential long-term returns, pair the capital growth RCS with capital growth projections, which are represented by low and high ranges.

    A helpful guideline to remember is that a higher RCS score often leads toa higher range of annual capital growth. For instance, a suburb with an RCS score of 80 and a growth range of -3% to +10% suggests that after five years, the annual growth could potentially fall between 5% to 7%.

    It’s crucial to inspect the number of bedrooms when analysing suburbs. For example, only three-bedroom houses in Nuriootpa meet our budget, whereas Mildura and Horsham offer both two and three-bedroom options. The presented statistics apply to all bedrooms except for price rent and yield metrics.

    Comparing other parameters, Mildura’s IRSAD rating of 2 raises concerns as it indicates a low socioeconomic status compared to the other suburbs. Let’s enable hidden columns in the spreadsheet by selecting all cells and then double-clicking on any column edge. When we scroll to the right, we’ll see that Mildura’s population is significantly larger than both Horsham and Nuriootpa. As a result, it may be valuable to segment Mildura further and assess distinct areas within it.

    To make a decision, it’s essential to perform an additional step of due diligence for Mildura. Meanwhile, Horsham and Nuriootpa could be the initial focus for property search. You can further explore the statistics for the suburbs by clicking on the names in the suburb column. In addition, it helps to compare suburbs to their neighbours within an LGA. To do so, just click on the name of the council on the suburb dashboard, and you’ll be presented with a dashboard for that LGA where you can explore the heatmap and compare the suburb as well as contextualize the neighbouring suburbs, one to another via the ranking table.

    This concludes our platform demo, which focused on those with limited budgets targeting the capital growth strategy. Keep in mind that there are many other scenarios, such as investors with established portfolios seeking high net yield properties. These scenarios will require different filters and metrics like cash flow RCS, yield, and rental projections.

    For investment horizons below five years or if you are pursuing a “buy and flip” strategy, you may want to consider metrics other than the capital growth RCS. If you have questions about the data on our dashboards, feel free to leave a comment at the bottom of every page, and we’ll respond as soon as possible.

    Sharing your question and contextualizing it with the data on the platform helps other users who might have similar inquiries. We also welcome general comments, insights, and observations from our members in the comments section. For established buyer’s agents, sharing your insights with our investor community benefits all platform users. If you’re a buyer’s agent subscriber, we encourage you to review our guide on maximizing the value of your membership. It covers setting up your profile, ensuring your logo appears in comments and generated PDFs, and more. The link to this guide will be available in the video description.

    Thank you for joining me in this demo, and I appreciate your interest in our platform. We look forward to assisting you in making informed property investment decisions. If you have any further questions or require assistance, please leave a comment below. Thank you and goodbye.

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