We are now on the second part of our Brisbane purchase case study featuring Peta. If you missed our initial post, head on to the link below to get an idea of Peta’s background and a glimpse of her buying criteria:
We’ve mentioned in the first part of this series that Peta was keen on buying in Brisbane market, therefore our location analysis was zeroed in on Brisbane suburbs. After identifying, documenting, and finally agreeing upon Peta’s buying criteria—one of which is location must be within 10km radius of Brisbane CBD—we analysed all suburbs that suit Peta’s criteria.
Peta is from Sydney so she needed to know and understand the Brisbane market and the meanings behind the numbers so that she could make informed decisions. This is an important aspect for an investor who is not local to the market he/she plans to invest in so that he/she can assess the recommendations a buyer’s agent would present.
The Pockets and their Numbers
The first location report we presented to Peta was consist of six subsets of areas or ‘pockets’. We enumerated the ‘numbers’ associated with each of the pockets. These include: projected growth, historical growth for 3 months, 12 months, 3-5-10 years, vacancy rates, rental yield, numbers sold, time on market, among other things.
We also provided maps of Brisbane and plotted on the map the location of major facilities like establishments, universities, train stations, and hospitals.
This process of presenting the numbers help narrow down the target location. Often investors go back to their buying criteria and make some changes upon presentation of a location analysis. In the case of Peta, she decided to focus on houses within the North and the South, with further focus on the Northside.
In-depth Location Analysis
We then presented Peta with another location report, this time with the narrowed down areas. We provided other pertinent data about the suburb including location, demographics, style of housing, and heatmaps.
We also provided an even more detailed suburb analysis, which was the product of literally driving around the suburb to map out where everything is, what style of housing exists where, the upside of the suburb, the downside, and all those data that we gathered first-hand.
After the suburb mapping exercise, we decided to focus on Northside and started looking for properties in the area—Gordon Park, Kedron, and Chermside. Because we were looking for houses factoring in our budget, we decided to expand our focus a little to adjacent suburbs that still present projected growth. These suburbs are Wavell Heights, Geebung, and Stafford.
And now we’re off to finding actual properties in those suburbs. We will share all about it on our next post so be in the loop!