An innovative algorithm, created by Riskwise Property Review, allows buyers a glimpse into the long-term risk-or-reward of a property. Vanessa Jones explains about the algorithm and the report.
Kevin:  Here’s some good news if you’re a buyer of a property and you want to know exactly how it’s going to stack up in the market. Buyers can now instantly receive a comprehensive analysis report that measures current and historical data and dozens of variables against a broad range of risk factors, ultimately, scoring the property’s risk potential from minimal to high.
This is in a program called RiskWise, and it uses some very advanced algorithms. Joining me to talk about this from RiskWise is Vanessa Jones.
Vanessa, firstly, tell me what is an algorithm?
Vanessa:  Hi, Kevin. Thanks for having me. An algorithm is a process that is based on a set of rules but is done in a mathematical way to solve a problem or question. In our case, the algorithm is based on dozens of data and information variables in order to assess the risk associated with residential properties.
Our algorithm is a method to calculate certain risk factors and to reach a certain conclusion. It takes on different variables – such as economy, direct housing, jobs, etc. – and we put them all into a mathematical equation, which promptly gives you a result at the end of the day that tells you whether the property is high risk, low risk, or medium risk.
Kevin:  Wow, that sounds very complicated, Vanessa. If I put an address into your website, what do I get back from you?
Vanessa:  You’re going to get a detailed report that first shows you on a very clear graph, the risk rating of your property, both as an equity risk and a cash flow risk. You also get a detailed description of the risks associated with the suburb and the specific property that you are buying. In other words, why it is a good thing to buy there or why it may be a high-risk investment.
Kevin:  Vanessa, I imagine you’d be asking for quite a bit of information because one of the problems is garbage in, garbage out. It’s dependent on how much information is there.
Vanessa:  Yes. One of the problems that a lot of these programs have is that the information is too generic. In many cases, they work at a suburb level not an individual property level. So, we’ve developed a simple approach that uses key property details. It takes only 45 to 60 seconds to enter the information and perhaps a further 10 seconds to submit it. Basically, within a minute or so, you can get a detailed report that delves into much more detail than most other reports.
Kevin:  That sounds like a fantastic tool for property investors or property buyers generally, Vanessa. How much does this cost?
Vanessa:  The cost depends on whether you are a property professional or an investor. As an investor, you might only want one report, which is $49, or you might be looking at a few properties, in which case, you could buy three reports for $99. But of course, as a property professional, you obviously have to look at a lot more properties, so we actually have packages available. You can get 100 reports for $799.
We just think it’s a great program, simply because of its detail and its depth of information that it looks into by the algorithm.
Kevin:  A lot of great advanced algorithms in behind this. It’s actually quite a complicated program. You can get more information and test it out for yourself by going to the website, RiskWiseProperty.com.au.
My guest has been Vanessa Jones from RiskWise. Vanessa, thanks for your time.
Vanessa:  Thank you.