Our Research
Property investment under the microscope
Science Behind the Results
“I’m not a specialist in stock markets however I do have a healthy appreciation for those who are…” An overwhelming majority of property investors tell us that their attraction to property as an asset class is its tangibility – they can see and touch it, unlike shares. While we can relate to this comment it also scares us every time we hear it.
Look at the big picture
In order to maximise investment returns, property investors need to treat property as a financial instrument (not the bricks and mortar which it is made of).
The best stock broker in the land doesn’t spend his day evaluating the aesthetics of company logos in order to make money on the share market. Similarly, he doesn’t limit his opportunities by only looking at a small range of stocks because the head office might be in his home town.
So, why is it that most property investors end up investing in a property which is located within a 5 kilometre radius of where they live, they could imagine themselves living in it, or it appears to be cheap?
Simon Pressley
Managing Director
The science of property markets lies in understanding economics
(And the specific factors which influence both the demand and supply of accommodation.)
PROPERTYOLOGY live and breathe this stuff – It’s our core business! Our research extends far behind reading the newspaper, Google, RP Data, and realestate.com. We study markets all over Australia to identify (sustainable) growth drivers. We are not about to publish our “secret herbs and spices” for all to see however we are happy to generalise. Property markets are all about people:
- Affordability the more people who can afford to live there the greater the pressure on future prices.
- Industry diversity a good thing today won’t necessarily be a good thing tomorrow. The outlook of different industries will directly affect future jobs.
- Economic development wherever there is demand for more jobs in the future there will be demand for more shelter.
- Supply too much supply acts as a growth suppressant. Yesterday’s actions of construction industry stakeholders directly affects tomorrow’s rates of housing supply.
PROPERTYOLOGY studies the movement of people. Things such as population trends, demographics, economic drivers, dwelling supply chains, employment opportunities, major projects, policies of all levels of government, and the difference between ‘desirability’ and ‘demand’. Across eight states and territories, there are approximately 550 individual local government jurisdictions; each one of these is akin to a company on the stock exchange.
When the difference between 6% and 8% average capital growth on a $450,000 property over 10 years equates to a significant $165,000 it pays to invest wisely.
And that’s why PROPERTYOLOGY takes very seriously the responsibility which our clients entrust in us to make their hard-earned dollar work for them”.
The Science of Property Markets
