LOCATION Masterclass Online Featuring: The Suburb Selector Software 2016 I Your Success Australia PTY LTD www.yourpropertysuccess.com.au
Disclaimer: The information in these courses are based on the personal opinions and own personal experience of property investing by Jane Slack-Smith. Jane is not a real estate agent, financial planner, lawyer or accountant. All information provided by Your Success Australia Pty Ltd is not intended to be specific to your circumstances rather one of many tools to assist you with your quest for information so that you can work with your own professionals to build your own investing strategy. After you have finished your research the decision is yours how you want to invest and if indeed you do want to. Any information provided is not meant as investment advice. Jane Slack-Smith and her associated companies including Your Success Australia Pty Ltd are now way liable for any loss, damage or misunderstanding caused by mis-management of any information provided or inferred. During the education process Jane Slack-Smith will introduce other companies and website and information to you which she is not associated with, these companies are providers of services and information. You need to do your own research and investigation of the information and services they provide Jane Slack-Smith and her associated companies including Your Success Australia Pty Ltd are no way liable for any loss, damage or misunderstanding caused by mis-management of any information provided or inferred by those companies affiliated or referred to in the course material or associated website. Disclosure: I purchase with my own money many courses and reports and I give my personal thoughts and opinions on these products and only recommend those I feel of benefit to property investors. In some cases, I am invited to be an affiliate of some of these reports, courses and related products and if you buy through my links I am paid a commission. I believe I am not influenced by this, but you need to decide for yourself, I do believe transparency is vital and hence this disclosure. 2016 Your Success Australia Pty Ltd 2 www.yourpropertysuccess.com.au 2016 Your Success Australia PTY LTD
SECTION 1: YOUR INITIAL SUBURB LIST Create an initial list of suburbs that are suited to your goals and property investment strategy. Through a structured process of analysis and elimination, you will find the suburbs that have the greatest potential for capital growth, pricing disparity (spread of values) and other individual characteristics that match your specific criteria. Your Tools: The Dot Map The Dotmap is designed to uncover the Ripple Effect. This effect is evident when certain suburbs or areas have experienced highly sustained growth over a 10 year period of time and may have created a squeeze effect onto their neighboring suburbs. By looking at these neighbouring suburbs (which you can afford) you are in effect researching the next great area that will grow in value. Suburb Selector Software Suburb Selector Softwares are prepopulated for each capital city of Australia. They provide you with the critical data that you need to make an informed and intelligent decision about where to buy. All you have to do is plug in your criteria and hey presto you are hot on the heels of finding the right suburb specific to your budget and strategy. Reports & Software Residex Predictions Reports Residex Renovators Top 100 Report Residex Renovators Suburb Report Ripehouse Pinpoint Predictions Report Terry Ryder Top 5 Hotspots Report Ripehouse Property Software Core Logic RP Data Professional Software Residex Reports: As a student of Your Property Success you are eligible for a 10% discount. Simply go to http://www.residex.com.au/ and apply the coupon code: NZLTHMKC 2016 Your Success Australia PTY LTD www.yourpropertysuccess.com.au 3
Dot Map Exercise This Ripple effect is evident when the surrounding areas have a high growth and may have created a squeeze effect. The dot map exercise is designed to uncover capital growth, or more specifically suburbs that are predicted to experience capital growth because surrounding pressures such as the ripple effect. This Ripple effect is evident when the surrounding areas have a high growth and may have created a squeeze effect ie people no longer can afford to buy in these demand suburbs so they start looking at the next suburb. Hence the ripple effect. By looking at these neighbouring suburbs that you can afford, you are, in effect researching the next great area that will grow in value. So to complete this exercise, you will need: 1 A large map of the city or state you are researching. This map shown in the course video is called the Melbourne Municipal and Postcode Map and was ordered online from retailer Mapworks. Other map suppliers are also available around Australia. Melbourne Municipal and Postcode map shown (www.mapworks.com.au) 4 www.yourpropertysuccess.com.au 2016 Your Success Australia PTY LTD
Dot Map Exercise 2 Semi-transparent coloured stickers or highlighters to indicate past growth figures. Mark it brand dots shown (www.mapworks.com.au) 3 A source of the past 10 year average growth data This may be from: Suburb Selector Software Australian Property Investor Magazine Smart Investor Magazine Your Investment Property Magazine www.myrp.com.au (go to Key Statistics > Market Statistics Graph) 2016 Your Success Australia PTY LTD www.yourpropertysuccess.com.au 5
Dot Map Exercise 4 Establish the percentage growth data ranges that you will use to plot the past capital growth. Be sure to have a quick look at what the suburb ranges are first for a guide. Choose a colour that represents each growth range, for example: Blue: 0-4.9% Purple: 5-5.9% Green: 6-6.9% Yellow: 7-7.9% Pink: 8-8.9% Orange: 9-9.9% Red: greater than 10% 5 Mark circles on the map at 5km, 10km and 15km radiating outwards from the CBD and other major activity centres (ie, Parramatta in Sydney) 6 Record each suburb s past ten year capital growth figure by placing a corresponding coloured dot onto each suburb. 6 www.yourpropertysuccess.com.au 2016 Your Success Australia PTY LTD
Dot Map Exercise 7 Look for suburbs that have neighbouring suburbs with higher past capital growth by two increments or greater. Create a short summary of your findings by recording the following: There are approximately suburbs that have neighbouring suburbs with higher 10 year growth by two increments or above. 8 Look for suburbs that have neighbouring suburbs with higher past capital growth by one increment or greater. Create a short summary of your findings by recording the following: There are approximately suburbs that have neighbouring suburbs with higher 10 year growth by one increment or above. 2016 Your Success Australia PTY LTD www.yourpropertysuccess.com.au 7
Residex Reports Buying Criteria Median Price $ + % = $ Rental Yield % p.a. #Sales pm pqtr The following Residex reports are recommended in helping you research for your next property. Highly recommended are the following reports by Residex for your metropolitan area: Residex Predictions Report Residex ResiSpread Report Residex Renovators Top 100 Report Residex Renovators Suburb Report Residex Predictions Reports Residex Predictions Reports forecast suburbs that are like to experience capital growth. Residex lists the predicted growth and rental returns of each suburb by assigning a comparative risk score to each suburb. Make a list of the suburbs recommended in the Residex Predictions Report. Consider selecting suburbs with median prices up to 20% above what you can afford. Suburbs Median Predicted Growth Ranking 5 yrs 8 yrs 8 www.yourpropertysuccess.com.au 2016 Your Success Australia PTY LTD
Residex Reports Residex ResiSpread Report Residex ResiSpread Reports contains valuable suburb data that is not available in other Residex reports or from other information providers. Make a list of the suburbs found as a result of the Residex ResiSpread Report. Consider selecting suburbs with median prices up to 20% above what you can t afford. Suburbs Median Predicted Growth # Streets Ranking 5 yrs 8 yrs 2016 Your Success Australia PTY LTD www.yourpropertysuccess.com.au 9
Ripehouse Report Highly recommended is the following report by Ripehouse: Ripehouse Pinpoint Predictions Report Make a list of the suburbs listed in the Ripehouse Pinpoint Predictions Report. Consider selecting suburbs with median prices up to 20% above what you can afford. Suburbs 10 www.yourpropertysuccess.com.au 2016 Your Success Australia PTY LTD
Terry Ryder Report Highly recommended is the following report by Terry Rider: Terry Ryder Top 5 Hotspots Report Make a list of the suburbs listed in the Terry Ryder Top 5 Hotspots Report. Consider selecting suburbs with median prices up to 20% of what you can afford. Suburbs 2016 Your Success Australia PTY LTD www.yourpropertysuccess.com.au 11
SECTION 2: REFINING YOUR LIST Suburb Selector Software The Suburb Selector Software exercise takes you through a structured process of analysis and elimination to arrive at our final shortlist of suburbs. 12 www.yourpropertysuccess.com.au 2016 Your Success Australia PTY LTD
Suburb Selector Software Sheet 1 displays all of the suburbs that meet the parameters set in the previous tab. 2016 Your Success Australia PTY LTD www.yourpropertysuccess.com.au 13
Suburb Selector Software Sheet 2 provides a valuable comparison between your suburb you re interested in and it s immediate neighbours. 14 www.yourpropertysuccess.com.au 2016 Your Success Australia PTY LTD
SECTION 3: YOUR INDIVIDUAL SHORTLISTED SUBURBS From this point forward record the following observations for each of your individual shortlisted suburbs one at a time. Suburb Name: Date: Compare your selected suburb to it s neighbouring suburbs Median prices: How does the target suburb you re looking at compare in median price to the neighbouring suburbs? For instance, are the suburbs closer to the CBD more expensive? Write down some of your observations regarding the median prices in the space provided below. Capital growth: Where is the capital growth coming from in the neighbouring suburbs? Is it recent growth, or has it been building over time? Write down some of your observations regarding the movement of capital growth in the space provided below. 2016 Your Success Australia PTY LTD www.yourpropertysuccess.com.au 15
Paid Reports Tally Return to your Dotmap and paid reports to record the rankings of your shortlisted suburbs. Dot Map 2% 1% Predictions Report Ranking Renovation Report Ranking Ripehouse Pinpoint Report Rider Top 5 Report Notes: 16 www.yourpropertysuccess.com.au 2016 Your Success Australia PTY LTD
Suburb Data Here we record some of the core data of your target suburb. Now if you re in a capital city, you already have most of this data collected in your Suburb Selector Software. If you are not in a capital city, then you can find the majority of this information in the back of the property magazines. Record the following information: Capital growth: 1year 3 years 5 years 10 years % % % % Rental yield: % Median rent: $ Percentage of renters: % Vacancy rate: % Stock turnover: % Sales volume: p.a. Days on market: Crime Rating: Vendor discount/premium: % Average hold period: pa Typical Land Size m 2 Notes: 2016 Your Success Australia PTY LTD www.yourpropertysuccess.com.au 17
Notes Notes: 18 www.yourpropertysuccess.com.au 2016 Your Success Australia PTY LTD
Suburb Data What type of properties are in this suburb and what kind of opportunities are available?! Resources: www.suburbview.com Go to: Property Reports tab Type in: Suburb Go to: Reports Go to: Rent Yields 3 Months Add the following information: Bedrooms: Price: Rent: Yield: Listings: 1 Bedroom: 2 Bedrooms: 3 Bedrooms: 4 Bedrooms: 5 Bedrooms: Notes: 2016 Your Success Australia PTY LTD www.yourpropertysuccess.com.au 19
Suburb Data What type of properties are for sale and rent within this suburb?! Resources: www.suburbview.com Go to: Properties for Sale tab Type in: Suburb Core Logic RP Data Professional Go to: On the Market tab. Place a tick for: #Bedrooms #Properties #Bedrooms #Properties Comparable properties for sale: (by bedroom) Comparable properties for rent: (by bedroom) Notes: 20 www.yourpropertysuccess.com.au 2016 Your Success Australia PTY LTD
Demographics Now it s time to gain an insight into the lives of the people who live in the suburbs you have selected. You can use this information to make an informed decision about your target demographic (or target buyer/renter) for the area. This section will assist you to identify what type of individuals are buying or renting in an area.! Resources: Go to www.abs.gov.au/census QuickStatsSearch Enter the following demographic information for your suburb along with the greater region information for comparison: Suburb State Age statistics: Family statistics: 2016 Your Success Australia PTY LTD www.yourpropertysuccess.com.au 21
Demographics! Resources: Go to www.abs.gov.au/census QuickStatsSearch Suburb State Occupation (top 5): Education (top 5): Not attending (working) University or other tertiary institution Infants/Primary Transport to work (top 5): Car (driver) Bus only Walked Car (passenger) Train 22 www.yourpropertysuccess.com.au 2016 Your Success Australia PTY LTD
Demographics! Resources: Go to www.abs.gov.au/census QuickStatsSearch Suburb State Type of dwelling (top 3): Detached house Semi/terace Flat Nature of occupancy (top 3): Rented Fully owned Purchasing Notes: 2016 Your Success Australia PTY LTD www.yourpropertysuccess.com.au 23
Ripehouse Property Software Ripehouse is an excellent way to get to know a suburb fast. This exercise will reinforce what you have already discovered in the previous steps and highlight the specific areas that you should target. Take a close look at the Ripehouse map using the following criteria and record your observations. Ripehouse Toggles: 1. Occupancy Type 5. Yield 2. Property Type 6. Investment Hotspots 3. Rent 7. Amenities 4. Income 24 www.yourpropertysuccess.com.au 2016 Your Success Australia PTY LTD
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MicroBurbs Website www.microburbs.com.au an excellent website for gathering suburb information relevant to up and coming suburbs. This data will provide you with valuable food for thought when comparing this suburb to the other suburbs on your shortlist. Record the following information from the microburbs website: Planning Applications Notes: 26 www.yourpropertysuccess.com.au 2016 Your Success Australia PTY LTD
MicroBurbs Website MicroBurbs Suburb Rangkings Family Score Out of 10 Affluence Score Out of 10 Lifestyle Score Out of 10 Convenience Score Out of 10 Communications Score Out of 10 Community Score Out of 10 Notes: 2016 Your Success Australia PTY LTD www.yourpropertysuccess.com.au 27
SECTION 4: THE POCKETS OF POTENTIAL The purpose of this section is to identify the best pockets within your chosen suburbs to buy. Because of the time and effort involved, this level of suburb due dilligence is typically performed on a shortlist of three to five suburbs. Residex Renovators Suburb Report: This report is a great tool to identify which are best streets with a spread of values present between renovated and unrenovated properties. Identify the street in the suburb with renovation potential Take the streets ranked by renovation potential and highlight them on a suburb map. Notes: 28 www.yourpropertysuccess.com.au 2016 Your Success Australia PTY LTD
Price Pin Map Exercise By following these six steps, you will be able to create your initial list of suburb candidates. 1 2 3 4 Obtain a map of your target audience Our example in the course is a council zoning overlay map. This map shows all of the heritage zones, building zones and any other zones for this suburb, but you could use a regular street map or even better, a demographics map from the census data. Highlight the top streets for renovation potential on your map Information sources: Residex Suburb Renovation Report Research several years worth of sales data You can ask a friendly real estate agent to provide you with this, or buy a report from someone such as, Residex, APM, RP Data. It is useful to have your list of past sales sorted into street order as opposed to alphabetical order. This means that you can complete entire streets, one at a time. Choose a colour for each price bracket If you are in the lower end of the market, choose a different colour for each $50,000 increment. If you higher in the market, such as above $700,000 median, then perhaps choose $100,000 increments. These are some examples of colours you could use: $700,000 $1,000,000 $800,000 $1,100,000 $900,000 $1,200,000 Now enjoy your own little treasure map! You can now clearly see where the pockets of potential exist within this suburb. 2016 Your Success Australia PTY LTD www.yourpropertysuccess.com.au 29
Ripehouse Strategy Analysis & Appraisal Take advantage of the powerful Ripehouse analysis tools to identify the best pockets within your chosen suburb and appraise the properties you re interested in. 30 www.yourpropertysuccess.com.au 2016 Your Success Australia PTY LTD
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Core Logic RP Data Professional Explore RP Data Professional s powerful search tools so you can easily find relevant properties based on your personalised criteria and requirements. Drill down into an individual property s data (Australia wide) including sales history, comparable sales and rental properties. Automatic Valuations Take advantage of the same property valuation tool the banks use This is fantastic for conducting a quick analysis and project feasibility. Radius Search - Find all of the properties that match your buying criteria within a specific area. Property Alerts - Set alerts for properties, so that when they get listed for sale, for rent, or get sold, you automatically receive email notification. 32 www.yourpropertysuccess.com.au 2016 Your Success Australia PTY LTD
Suburb Drivers Now let s take a look a some of the other drivers which may affect a suburb s price movement. As a result of the above exercise, you now have a spreadsheet of suburbs along with all of their core data for comparison. You also have a Dot Map to help identify the geographical distribution of growth trends across your search area. Now let s take a look at some of the other drivers that may potentially affect the price movement of a suburb. 1 2 3 4 5 6 7 Positive population growth www.ausstats.abs.gov.au www.sqmresearch.com.au State and local government publications School information and rankings www.bettereducation.com.au www.myschool.edu.au School zones and enrolment policies Individual school websites Infrastructure, transport, shopping centres Council websites Local business associations Building approvals www.profile.id.com.au Council websites Crime statistics www.myboot.com.au Plans and developments Local and State government websites 2016 Your Success Australia PTY LTD www.yourpropertysuccess.com.au 33
Make Your Shortlist! You now have all the information you need to compare you shortlisted suburb against each other to arrive at the best suburb suited to your strategy It s now time to hit the pavement! Notes: Suburb Median Price Predicted Growth 5 Year 8 Year 34 www.yourpropertysuccess.com.au 2016 Your Success Australia PTY LTD