That you can look at gradients of slopes and work out what the discounting might be your honor so like that’s all good and you can use these as tools but often for a lot of investors they get stuck in and never do anything because they overanalyze because of the data available you know as a research your job is to provide this in to market but you must see property investors.
Who never get there and never actually buy something because they just put too much emphasis on the data or what’s your accommodations around that it’s actually really common and and people call it analysis Ellison see right you you just stuck justjust trying to work out your numbers way too much I think absolutely research is really important get it getting you your numbers rights investment is all about the numbers and taking some of the emotion out of it or all the emotion out of it but in there today you’ve got to make a decision.
You’ve got to go with your instinct in some time in some conditions even you know when everything stacks up you’re still gonna have choice of which properties actually fit your consideration set and then you need to choose amongst them then it comes down and negotiating so generally the best the best advice I can give is is act right do your research but it executes follow-through and we’re obviously chatting about investors real estate agents use this data at your friendly to mortgage brokers it uses it differently to developers but as property investors.
How do the best property investors use data to get to a decision making process the quickest or the easiest or the smoothest is there any particular top-line data they should be making sure they do cover and that should be enough to get going or you know what’s the best that you see I think most investors generally have an idea where property valuation sydney cost they would like to buy mmm but that’s always a good place to start is distilling down where you want to buy your property at so there’s there’s plenty of ways to do that you can look at the all the suburb level detail you can look at the capital city level detail and start drilling down from there and most investors be looking at things like well a price is going up or down.
There any momentum in the market that might show you where the trends are heading what’s happening with volume how much supplies in is in in the pipeline or how many homes are being advertised for sale once you start to get an idea of the geography that you’d be targeting and the housing type is going to be a house or an apartment or a townhome or villa then you can really start looking at the fine tuning of well which property is right for me and my budget so that obviously gonna start looking at the portals real estate calm domain on the house trying to find the properties.
That Ibelieve in the ballpark I mean obviouslysome states vary wildly and you know forlooking at you know the premium parts ofMelbourne and some parts of Sydney.
Then yields are extremely low and if we lookat other parts of the country thenyields are significantly higher but .sydney property valuations Domination would say you know we’re certainly inthe same ballpark is.
that it’s not youknow double or something you know thatkind of figure so I think that as abarometer is one of the most accuratesort of ways to value where property isright now.
I’m not looking at you knowgoing up you know the value in terms oflike the capital growth of you the assetclass you need to look at what theunderlying earnings are and that’s whatreally you know propels an asset overtime and
That’s what you’re buying whenyou buy a business when you buy propertyyou know you know people want tospeculate and they want the value to goup but.
What you’re really getting isthat rental yield or when you’re buyinga business what you’re really getting isthe profit that the business makes sothat’s .
Why you need to look at theactual earnings yield now this earningsyield is that you’re not very cheap byhistorical standards at that is wellabove average and it’s not it’s not at abubble level we saw .
I believe ish pin terms of run at evel’s sovaluations have been way more stretchthan this in the past but suddenlythings aren’t cheap but at the same timeit is only a bit above you know .