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Property Investment Wheel Cycle Data

Investing is a financial decision. The best decision structure begins with an objective analysis of 100% of the options.

With Australia’s eight capital cities included, there are 185 towns with a population of 10,000 or more. Any investor who focuses on their hometown is giving themselves a 1 in 185 chance of making the best decision.

Investment Cycle Chart

Is this smart decision-marking?

Years of experience has taught me that there are several factors that significantly influence property markets. Some are mathematical, other are qualitative.

While there isn’t a crystal ball mathematical model that can predict property prices… there IS certainly a system that can maximise your chances of selecting the right area and property, and minimise your
risk of picking the wrong area and property.

We want capital growth in the short term AND long term.

Any tom dick or harry can get growth in 15 years. But that doesn’t help with pulling out equity and growing a portfolio, fast!

We want equity extraction in the short term.

So suburb selection is king! And there are more than 30 factors in selection a suburb that will grow in the short term.

Yes it can be done. Don’t let anyone tell you otherwise.

My students know that there are many moving parts to suburb selection, but that it all boils down to five factors:
1) Local economy (not necessarily macro [read: Covid-19])
2) Confidence – yes this can be quantified and analysed
3) Buyer Activity – here lies the holy grail of data analysis
4) Property Prices – no, historical prices don’t predict future prices
5) Construction Activity – supply is as important as demand

Invest in your education. Don’t play roulette with the property wheel.

Be serious about generating passive income for your family.

PK Gupta
Published: 18 Jun 2021

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