How to find your first deal? - 01
How to Find Your First Deal – The session focuses on narrowing down from macroeconomic trends to specific suburbs to identify the best real estate deals.
Economic Factors Affecting Property Prices – Discussion on property economics, the property clock, employment rates, capital growth, inflation, and how macroeconomic indicators impact real estate investments.
Understanding Market Signals – How to listen for key indicators such as rising property prices, population growth, interest rates, government policies, and urban renewal projects to assess property value trends.
Suburb Selection & Analysis – Steps to analyze different suburbs based on statistical data, housing demand, development approvals, and supply/demand balance.
Factors of Production in Property Development – The four factors—land, labor, capital, and entrepreneurship—are crucial for successful development projects.
The Property Clock & Market Cycles – How property prices fluctuate in cycles, why timing matters, and how developers can use this knowledge for profitable investments.
Real Estate Financing Strategies – LVR (Loan-to-Value Ratio), financing from banks, equity contributions, and how to determine the maximum project size you can undertake.- Using Real Estate Data & Online Tools – Analyzing government reports, bank data, real estate websites, and urban renewal projects to spot profitable investment locations.
- Practical Strategy for Deal Sourcing – Identifying undervalued properties, setting up financial feasibility, and using investor networks to fund development projects.
Impact of Government Policies on Property Prices – Analysis of economic reports, taxation policies, foreign investment restrictions, and their influence on real estate investments.
Insights Based on Numbers
- Unemployment Rate Trends – Historically, Australia’s unemployment rate has fluctuated between 5.5% - 6.2% in recent years, affecting household spending and property demand.
- House Price Index – Market movements have shown a consistent increase in property values despite macroeconomic shifts.
Building Permits Indicator – A strong leading indicator showing the construction workload and future property supply levels.- Property Market Growth & Inflation – The real estate market has continued to expand despite lower inflation rates, meaning holding property in low-inflation environments remains profitable.