It is very important to understand what
has driven the data you’re using to make your decisions because not all data is
reliable or meaningful.
Data might suggest that a particular
suburb or geographical location is primed for future growth, but if the data is
wrong or unreliable; or more likely if you have misinterpreted the data, you
could make a very costly investment mistake.
Similarly, individual property growth
data might suggest that a property is a good or bad investment, but the reality might differ.
It’s important to understand the data
before drawing any conclusions.
For example, just because the data
shows a suburb has generated price growth of 9% per year over the past 5 or 10
years, it doesn’t necessarily suggest its future growth will be in line with
this.
Similarly for property-specific data -
it is important to ascertain whether past sales were representative of the true market value of the subject
property.
So when it comes to getting hold of
data, information, facts, and figures to support your investment decision, make
sure you question whether you’re being sold something that is right for you and
your needs.
Are you listening to the right person
or company for advice, or do they have a vested interest?
You'll find many marketing companies
and those representing vendors and developers will skew the data to look more
attractive than it is.
Most importantly of all, you should
never make important property decisions on data alone.
Because the data only gets you part of
the way - you must complement that data with local area knowledge and
expertise.
Having many years of experience in a
geographical market allows you to understand a market better and appreciate any
changes in value drivers.
This is where the "art of property”
plays an important role.
It gives context to the data and allows
you to decide on its relevance.
RealRenta has all the
tools that a property manager has but for less than ¼ the cost of a
property manager.
Join now and the cost
is less than a cup of coffee a week to manage your rental property
RealRenta also has a
free vision, so why not check it out
Jason Gwerder
Tuesday, 31 May 2022
