Special Property Hotspot Report

Similar documents
Special Report. Australia s Cheapest Suburbs with the Greatest Potential for Capital Growth. For more reports head to

Special Report. Australia s Cheapest Suburbs with the Greatest Potential for Capital Growth. For more reports head to

australia s 106 Hot suburbs, up to 128% rental growth! annual best rental report exclusive! How we found our mega bargains!

Individual Property Report. Cambooya Toowoomba, QLD 4358, Australia

Suburb Profile Report. Paddington, 2021 NSW

Bargara Property Factsheet

Ingleburn Property Factsheet

Alexandria Property Factsheet

Creswick Property Factsheet

CITY OF GREATER GEELONG LGA GROWTH OVERVIEW FUTURE DEVELOPMENTS**

Quarterly Review The Australian Residential Property Market and Economy

Ashmore & Molendinar Property Factsheet

*IMAGE* 6.5cm HIGH 10.6cm WIDE

National Rental Affordability Scheme. NRAS and Mistakes to AVOID!

RP Data chart pack. September 2014

Toowoomba Property Factsheet

Local Government Area Statistics Report Suburban Brisbane

RP Data Housing market update. October 2014

RP Data chart pack. November 2014

80 Baptist Street Redfern NSW RP AUTOVAL Automated Valuation

How to Read a Real Estate Appraisal Report

City Futures Research Centre

PROPERTY FACTSHEET PROPERTY WATCH REPORT. GOLD COAST Surfers Paradise Fourth Quarter 2013

Local Government Area Statistics Report Suburban Melbourne

Capital growth opportunities in Cedar Grove, Brisbane

What can you expect from your next steps worksheet?

Domain Rental Report September Quarter 2016

SHOALHAVEN CITY COUNCIL GROWTH OVERVIEW FUTURE DEVELOPMENTS**

LOCATION. Masterclass Online. Featuring: The Suburb Selector Software

Condominium Conversions in. Determinants

Download Presentation

Top Performing Suburbs National July 2018

NZ property report OCTOBER 2016

DETACHED MULTI-UNIT APPROVALS

Hunter Valley Property Factsheet

realestateview.com.au housing sentiment report

Contents. off the fence. It s a good life!

Housing as an Investment Greater Toronto Area

QUARTERLY RENTAL SNAPSHOT

Buxton Property Values Report Spring Albert Park Middle Park Port Melbourne South Melbourne Southbank St Kilda West

DETAILED PROPERTY REPORT 20/03/ /125 Sample Street, Sampleville

Top 10 Predictions Perth

MONTHLY RESEARCH BULLETIN DECEMBER 2016

Domain Rental Report June Quarter 2015

PROPERTY FACTSHEET PENRITH. GOLD COAST Surfers Paradise. Fourth Quarter 2013

FY2012 RESULTS PRESENTATION

Volume II Edition I Why This is a Once in a Lifetime Opportunity for Investors

Comparative Market Analysis

2007 Profile of Home Buyers and Sellers Pennsylvania Report

absorption rate ad valorem appraisal broker price opinion capital gain

Dual Income Property Strategy

Rental report. December Quarter Dr Andrew Wilson Senior Economist for the Domain Group

RESIDENTIAL MARKET REVIEW

Appendix 1: Gisborne District Quarterly Market Indicators Report April National Policy Statement on Urban Development Capacity

Following is an example of an income and expense benchmark worksheet:

CoreLogic RP Data Property Market Indicator Summary All data to week ending 30 August 2015

Domain.com.au House Price Report December Quarter 2015

MONTHLY RESEARCH BULLETIN SEPTEMBER 2016

NAR Survey Shows Consumers Very Satisfied With Agent Performance

EDITION 1 GEELONG REGIONAL CENTRE REVIEW GEELONG 2017 MARCH

LAND MONITOR REPORT

Investment Guide. home loans

Examples of Quantitative Support Methods from Real World Appraisals

RENTAL SNAPSHOT. Monthly market report: May Media Release 01 June 2018

7224 Nall Ave Prairie Village, KS 66208

A Window Into the World of Condo Investors

The cost of increasing social and affordable housing supply in New South Wales

Market Trends Generated on 09/27/2018 Page 1 of Lorenzen Rd, Tracy, CA , San Joaquin County. Pricing Trends

4.2% INVESTOR PACK INDUSTRIA KNOXFIELD

What s your property worth? Find out for Free at:

Executive Summary. Overview DUBAI HOUSE PRICE INDEX: QUARTER ON QUARTER Q / Q4 2015

Quarterly Review The Australian Residential Property Market and Economy

HOTSPOTS REPORT PROPERTY WATCH REPORT. SYDNEY 2 nd HALF 2015

SELF-STORAGE REPORT VIEWPOINT 2017 / COMMERCIAL REAL ESTATE TRENDS. By: Steven J. Johnson, MAI, Senior Managing Director, IRR-Metro LA. irr.

BACKGROUND & METHODOLOGY Introducing the Housing Affordability Sentiment Index... 3 THE HASI The final HASI score... 6

PROPERTY DEVELOPMENT REPORT

Property Research Report: Capital growth opportunities in Morayfield, Queensland

2012 Profile of Home Buyers and Sellers New Jersey Report

Shaw's - Peterborough, NH

Chapter 35. The Appraiser's Sales Comparison Approach INTRODUCTION

PRINCIPLES OF VALUATION

WEST MELBOURNE URBIS RESIDENTIAL MARKET OUTLOOK

RISC Report - Detailed

Affordable Housing in South Africa How is the market doing?

City geography and economic policy. Council of Capital City Lord Mayors John Daley, CEO Parliament House, Canberra 14 September 2015

House price report. September quarter Dr Andrew Wilson Senior Economist for the Domain Group

Vesteda Market Watch Q

Cederman Properties Alternate 19, Suite B-15 Palm Harbor, FL

GOVERNMENT PROPERTY AUCTIONS E-BOOK

New Hampshire Report. Prepared for: New Hampshire Association of REALTORS. Prepared by: NATIONAL ASSOCIATION OF REALTORS.

Charlotte Report. Prepared for: Greater Regional Charlotte Association of REALTORS. Prepared by: NATIONAL ASSOCIATION OF REALTORS.

NINE FACTS NEW YORKERS SHOULD KNOW ABOUT RENT REGULATION

101 Ways Your Intern Can Triple Your Real Estate Investing Business This Year

Domain House Price Report

Re: Your Investment properties- brand new houses - Coomera Central

The Texas 2005 Profile of Home Buyers and Sellers. Prepared by: NATIONAL ASSOCIATION OF REALTORS Research Division

NEW ZEALAND PROPERTY SURVEY SEPTEMBER 2015

Filling the Gaps: Active, Accessible, Diverse. Affordable and other housing markets in Johannesburg: September, 2012 DRAFT FOR REVIEW

RENTAL AFFORDABILITY INDEX KEY FINDINGS

Ontario Rental Market Study:

Transcription:

Special Property Hotspot Report Australia s Cheapest Suburbs with the Greatest Potential for Capital Growth for 2015 Market: Australia Created by: hotspotcentral.com.au Contact: t: 1300 200 340 For more reports head to www.hotspotcentral.com.au

The Demand Supply Ratio Market Report Report Basis Prices move in response to the changes of demand and supply. For prices to rise, demand must exceed supply. The greater the degree by which demand exceeds supply, the greater the pressure on prices to rise. There can be a large number of factors influencing the tug-o -war between demand and supply. Some changes that are likely to increase demand include: New roads Extensions to railway lines New bridges New hospitals or extensions to existing ones Universities Private enterprises setting up in an area Government departments relocating New schools Changes in what people find appealing For more information about fundamental research techniques, visit www.dsrscore.com.au Some changes that might lead to increases in supply include: Releases of new land or house and land estates Developers replacing low density properties with higher density ones The degree to which these fundamental forces influence demand and supply can be measured using a set of key statistics. This report gathers and examines those key statistics. It measures the degree of balance between the forces of demand and supply across all suburbs in Australia. Note that this report only researches the statistics of supply and demand. The report does not detail circumstances concerning the drivers influencing these statistics. The research of those circumstances falls under the banner of fundamental research, not statistical research that is this report's focus.

Demand to Supply Ratio (DSR) There are eight recognised property statistics available from many different Internet sources. Individually, they are either an indication of the demand from tenants and owner-occupier buyers for property in the area or the available stock on market to meet this demand. When viewed together, as a whole, these eight statistics are highly predictive of future price movements in the area as a result of the gap in supply and demand or the Demand to Supply Ratio (DSR). The DSR is a score that indicates if demand is exceeding supply and by how much. It combines a number of key statistics to give an overview of the ratio between demand and supply. By using a consistent algorithm, an objective, unbiased and quantitative comparison of the capital growth potential between suburbs is possible. For more information, visit www.dsrscore.com.au. A single number called the DSR Score represents this gap in supply and demand. The DSR ranks a suburb between 0 and 48 based on how it measures against each of the eight statistics (so 8 statistics x a maximum score of 6 for each statistic = 48, which is the maximum overall score). The DSR score is useful for ranking suburbs for easier selection. 48 suggests a suburb with a high probability of imminent capital growth. 24 is a suburb or market in theoretical balance. 0 is a suburb with a high chance of price decline due to over supply relative to demand. Users of boomapp.com.au can obtain a DSR Score for units or houses in each suburb (and there are over 15,000 suburbs in Australia).

The Demand Supply Ratio Market Report The 8 Stats Behind the DSR Score DAYS ON MARKET >> This is the number of days a property has been listed for sale. The lower this figure, the more quickly property is snapped up by buyers, showing high demand. DISCOUNT >> This is the percentage difference between the original asking price requested by the seller and the eventual sale price agreed by the buyer. The lower this figure, the more demand there is since sellers don t need to be as open to negotiation in order to get their property sold. AUCTION CLEARANCE RATE >> The percentage of auctioned properties that actually sell. The higher this figure, the more demand there is from buyers since fewer properties are passed in. RENTAL YIELD >> The percentage of rental income to property value. The higher this figure, the more demand there is from renters to live in the location. VACANCY RATE >> This is the percentage of properties that are vacant. The lower this figure, the lower the supply of rentable accommodation or the higher the demand for it, or both. STOCK ON MARKET >> This is the number of properties for sale as a percentage of properties in the area. The lower this figure, the lower the supply of property or the more demand for it, or both. RENTERS VS. OWNER-OCCUPIERS >> This is the proportion of renters to owner-occupiers that live in a suburb. The lower this figure, the less supply of rentable accommodation there is. Owner-occupiers tend to take better care of their properties than tenants and are usually of a higher income demographic. ONLINE SEARCH INTEREST >> This is the ratio of people searching for property online to the number of properties for sale. The higher this figure, the more demand for property compared to supply for would-be buyers searching online.

Typical Value The typical value is the value of a typical house or unit in a suburb. The typical value is neither the average nor the median, but a calculation similar to medians and averages aimed at providing a more accurate and less volatile figure for the typical value of a specific market. Statistical Reliability (SR) A suburb s data is tested for depth, breadth and quality, and then scored. This statistical reliability is a good measure of how much you can rely on the data behind the score. The more sources of data, the more accurate the conclusions that can be drawn. Data that has historically shown itself of a higher quality should be given more credit or weight in calculations. Unrealistic figures should be either weeded out completely or at least given lower credibility. Statistics that have volatile changes from month to month should not be relied upon as much as those showing consistency. The Cheapest Suburbs report is based on a search for suburbs with the highest DSR Score (or capital growth potential) within certain price brackets, i.e. typical values of $400,000, $300,000 and $200,000. LOCATION WITH PROPERTIES UNDER $400k State Post(Code Location Type Typical(Value DSR(Score NSW 2262 HALEKULANI House $338,250 43 NSW 2766 ROOTY3HILL Unit $366,500 43 NSW 2565 INGLEBURN Unit $356,500 42 NSW 2747 CAMBRIDGE3PARK Unit $360,000 41 NSW 2763 ACACIA3GARDENS Unit $364,000 41 NSW 2147 KINGS3LANGLEY Unit $364,000 41 NSW 2749 CRANEBROOK Unit $389,500 41 NSW 2747 KINGSWOOD Unit $298,000 40 NSW 2745 MULGOA Unit $310,000 40 NSW 2750 EMU3HEIGHTS Unit $310,000 40

The Demand Supply Ratio Market Report LOCATION WITH PROPERTIES UNDER $300k State Post(Code Location Type Typical(Value DSR(Score NSW 2747 KINGSWOOD Unit $298,000 40 NSW 2770 MOUNT7DRUITT Unit $296,500 39 QLD 4211 HIGHLAND7PARK Unit $254,500 38 VIC 3678 WANGARATTA7SOUTH House $259,000 38 QLD 4227 REEDY7CREEK Unit $295,000 38 NSW 2488 BOGANGAR Unit $299,750 38 NSW 2747 WERRINGTON Unit $300,000 37 QLD 4870 WHITFIELD Unit $254,000 36 NSW 2322 TARRO House $277,125 36 VIC 3401 QUANTONG House $235,000 35 LOCATION WITH PROPERTIES UNDER $200k State Post(Code Location Type Typical(Value DSR(Score NSW 2541 BOMADERRY Unit $195,000 33 TAS 7010 GOODWOOD House $196,500 33 VIC 3400 HORSHAM Unit $184,775 32 VIC 3690 WESTFWODONGA Unit $191,000 32 VIC 3350 BALLARATFCENTRAL Unit $197,500 31 NSW 2794 COWRA Unit $125,000 30 SA 5108 SALISBURYFDOWNS Unit $157,000 30 VIC 3505 MERBEIN Unit $165,000 30 VIC 3498 IRYMPLE Unit $165,000 30 QLD 4870 EDGEFHILL Unit $173,250 30

Data sourced in December 2015 and subject to change. Visit boomapp.com.au to verify. Once you ve chosen a good location, how do you further increase your chances of investment success? The answer is to buy wholesale and not retail. Watch this free webinar at hotspotcentral.com.au/webinar You can save $126,000 on a brand new $420 000 townhouse and own a new property every year on a single deposit. The Benefits of Buying Wholesale BUYING WHOLESALE CREATES AN INSTANT CAPITAL GAIN OF APPROX. 20% >> no relying on the market for growth. THIS CREATES A CASH BUFFER OF 20% FROM DAY 1 >> peace of mind if interest rates go up again, as they will. LVR (LOAN TO VALUE RATIO) DROPS SIGNIFICANTLY THAN IF PURCHASED RETAIL >> property goes from negative to positively geared from day one. INVESTORS CAN TAKE OUT THEIR ORIGINAL DEPOSIT ON SETTLEMENT >> and hold the property on 80% Loan to Value Ratio (LVR) or less in most cases. NO LMI >> instant equity reduces the LVR below Lender s Mortgage Insurance threshold Copyright and disclaimer notices for research reports In compiling this publication, hotspotcentral.com.au has relied upon information supplied by a number of external sources. The publication is supplied on the basis that, while hotspotcentral.com.au believes all the information in it is deemed reliable at the time of publication, it does not warrant its accuracy or completeness. In addition, to the full extent allowed by law, hotspotcentral.com.au is excluded from liability in contract, tort or otherwise, for any loss or damage sustained by subscribers, or by any other person or body corporate, arising from or in connection with the supply or use of the whole or any part of the information in this publication

The Benefits of Buying Wholesale TAKE OUT ORIGINAL DEPOSIT TO INVEST IN ANOTHER PROPERTY >> repeat after each project and add one new property each year to your portfolio without saving for the next deposit. SAVE MORTGAGE INTEREST COMPARED TO PAYING RETAIL PRICE >> interest saving of $8,800 plus per annum (see case study). SECURITY OF TITLE THROUGHOUT >> development site is owned by you through each phase, including construction (you even choose the finishes if desired). OPTION TO OWN IN SMSF (SELF-MANAGED SUPER FUND) >> this is an industry first, effectively enabling development in SMSF with access to profit on completion. This is achieved through ownership of a special class of share that represents the townhouse itself. Finding a wholesale opportunity, and realising upfront savings, in a location now that s a DOUBLE WHAMMY!