When I first got into property investing, people said I was crazy.
“Why would you leave your safe secure job for something so risky?” they would say.
Or, “Did you hear Joe Bloggs down the road went bankrupt on his development last month?
My favourite is, “I read in the paper last week that the housing market is flooded with units and new dwellings. I wouldn’t be getting into property these days”
After awhile I gave up telling people that I was even interested in property investing so I didn’t have to listen to a bunch of naysayers.
Getting Serious About Getting Your Facts Right With Accurate Property Data
Let’s face it, If you’re source of research is the newspaper (or any type of commercial media these days) you’re not really serious about getting the facts.
Successful property investors (as opposed to part time speculators making small talk at the weekend BBQ) use statistical information, research raw property data and base their decisions on fact, not opinion.
In fact, whenever I hear someone say, “the housing market is doing X” I tend to switch off because I know that statement is far too broad to have any substance to it.
The truth is there are thousands of markets operating all at once and although keeping an eye on some general statistics is helpful, you need to know your own area intimately.
My investing area is often focussed on just 2 or 3 suburbs!
No-one has a crystal ball so no-one can really claim to know what will happen tomorrow, next week, next month or next year.
It comes down to forming your own opinion based on fact and then backing that viewpoint and taking action.
So Where Should You Be Getting Your Property Data From?
Well this topic came up recently by one of our members on the Property Resource Shop Facebook forum (thanks, Adam Henry!)
It seems there is often a vast disparity between different data sources and their reporting of some of the more commonly used property data such as:
- Median price
- Median rental
- Rental yield
- Number of sales
To help bring some clarity to this debate, I dug up an old article written by Kieran Clair, editor of Australian Property Investor magazine.
Kieran interviewed representatives from four of the big players in property data distribution:
- John Edwards, founder of Residex http://www.residex.com.au
- Louis Christopher of SQM Research http://www.sqmresearch.com.au
- Cameron Kusher, senior researcher at Core Logic RPData http://www.corelogic.com.au
- Yvonne Chan, head of research Australian Property Monitors https://www.apm.com.au
Through his questions to the above contributors, Kieran presents a balanced view of just why there can be such discrepancy in this important distribution of property data.
Check out Keiran’s article here:
Whatever your source of information, bear in mind, it’s useless unless you do something with it.
Successful investors actually use this information by forming an opinion about their chosen market and implementing a strategy based on that data.
Speculators and naysayers tend to use property data differently. It’s either:
- To conjure up discussion at a social event or
- To justify their decision around doing nothing
Ultimately, if you want to succeed in something, property investing included, at some point you’ll need to stand out from the crowd and do things a little differently.
If you struggle with that, it might be time to revisit your reason for investing in the first place.
Check out my ‘Discover you Why’ blogpost which has a great exercise to help bring clarity around your reason for investing:
By completing the 10 minute exercise, you’ll discover and harness a new found drive and motivation to succeed no matter what challenges lay ahead.