{"id":12963,"date":"2017-07-30T16:51:00","date_gmt":"2017-07-30T06:51:00","guid":{"rendered":"http:\/\/realestatetalk.com.au\/?p=12963"},"modified":"2017-07-30T16:51:00","modified_gmt":"2017-07-30T06:51:00","slug":"property-investors-need-to-think-differently","status":"publish","type":"post","link":"https:\/\/channels.realty.com.au\/realtytalk\/property-investors-need-to-think-differently\/","title":{"rendered":"Property Investors Need To Think Differently"},"content":{"rendered":"

More than any other person in the world, I would have loved to have spent a few hours one-on-one with Apple founder, the late Steve Jobs. I\u2019ve read his book, I\u2019ve seen You Tube clips of him presenting, and I\u2019m forever grateful for the extra conveniences in my world because of Apple\u2019s technology. I\u2019m fascinated by how Jobs\u2019 mind worked. Jobs refused to follow conventional wisdom; it was his nature to constantly challenge the status quo.
\n\"Property<\/a>
\nWithout people like Jobs who constantly think differently the world would never evolve. We\u2019d all keep doing the same things – because that\u2019s what everyone else does – and never question why. That\u2019s what property investors do, too. From the creature-of-habit investor whose imagination can\u2019t extend beyond their home town to the person who is genuinely trying to broaden their horizon but still ends up bowing to whatever the \u2018consensus of the masses\u2019 is at the time, there\u2019s not a lot of creative thinking involved.
\nI\u2019ve spent a reasonable chunk of my working life studying property market history and it has taught me there\u2019s a lot of value in challenging the status quo. Most of the commonly accepted property theories aren\u2019t supported by historical evidence. Probably the best example is assuming that highest population growth equals highest price growth – wrong! The best performed property markets over the course of time were in locations that most investors wouldn\u2019t ever consider – fact!
\nThis graphic summarises the main factors which influence property markets.
\nThe most valuable research project that I\u2019ve ever been part of involved calculating the historical performance of the property markets of every single one of the 550 local government authorities (LGA) in Australia over the last fifteen years (effectively, two full property cycles). This massive project took Propertyology\u2019s research team several weeks. After then ranking each of the 550 LGA\u2019s from best to worst performed, I was amazed by the order. For example, Narrabri was ranked 50th<\/sup> out of 550 LGA\u2019s while desirable (but expensive) Bondi was 362nd<\/sup>. And, Ararat (population growth of zero) was streets ahead of Wyndham (population growth 3 x the national average).
\nStage 2 of our project involved identifying some common characteristics amongst the better performed markets and the not-so-well-performed markets since the turn of the century. Our findings from this project has shaped the way in which Propertyology selects locations for future investment; we are constantly scouring Australia looking for towns and cities which have these three (3) characteristics<\/i><\/b>:<\/p>\n