Lack of focus is one of the major issues everyday property investors are afflicted with when it comes to buying a property. There are just too many locations to choose from and too much data to deal with. Sometimes the amount of information one tends to gather can be overwhelming (and frustrating!) that the investor sometimes give up in the middle of the process.
That is why it is important to narrow down your list of target location before investing your time and energy analysing further the numbers in the area. And this was what we did with our current case study. Before you read further, catch up on our posts documenting Luke’s Brisbane property purchase:
Part 1 — Meeting the client
Part 2 — Setting Buying Criteria
Part 3 — Narrowing Down Locations
So we’ve done location funnelling and Luke came up with his narrowed choices for target areas: Fitzgibbon, North Lakes, and Rothwell. The next step is focusing on these three locations to further determine which amongst these areas meet Luke’s investing requirements.
Like we mentioned in the intro, data gathering could be overwhelming especially when you have a wide range of locations to choose from. And that is just half the battle since once you have chosen specific locations, you would want to be an “expert” on that area and know how the market (which is constantly changing, by the way) moves in that specific location.
Going back to our Brisbane purchase case study, after providing Luke with a location analysis of both Brisbane and regional Queensland areas and him deciding to focus on Fitzgibbon, North Lakes, and Rothwell; we then conducted further study and drove the streets to assess the potential of these three areas—the traffic, the people, the good and bad locations, the deals available.
From our more in-depth analysis of these three areas, we provided Luke with a detailed ‘Target Locations’ report and from this, Luke decided to go for Rothwell and North Lakes to further narrow down his target location.
What’s next is scouting for properties, which we will share with you in the next part of this series. Watch for it!