Previously known as “The Property Planner, Buyer and Professor”
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Show Notes – Suburb Property Data
In today’s episode, the Property Trio tackles two common investor traps: over-reliance on suburb-level data and chasing “bargains” in the bottom quartile of property prices.
The Lure of Cheap Properties
We explore why low-priced properties in suburb reports can be risky, especially when they’re in low socio-economic areas with limited growth potential. While high rental yields may seem tempting, they often lack strong owner-occupier appeal, which is the real driver of long-term capital growth.
The Pitfalls of Suburb Medians
Suburb median prices are easy to find but can be dangerously misleading without context. We share smarter ways to analyse data, such as filtering by dwelling type, checking sales dispersion, days on market, vendor discounting, and the percentage of stock on the market.
Why Suburbs Aren’t All the Same
Every street, pocket, and dwelling can differ greatly within a suburb. We highlight why true due diligence goes beyond numbers, covering lifestyle appeal, property orientation, and neighbourhood quality. A “good” postcode doesn’t always mean a good investment.
The Four Pillars of Lifestyle Appeal
Discover how a balanced lifestyle scorecard, measuring proximity to the beach, nature, urban amenities, and family infrastructure, can reveal areas with enduring growth potential. Locations scoring highly across all four pillars, such as parts of Warringah, Townsville, and Perth, often show strong long-term resilience.
Red Flags to Watch For
Ultra-tight days on market compared with neighbouring suburbs can signal investor FOMO driving prices up unsustainably. We also explain why understanding supply constraints, like zoning and heritage overlays, is key to spotting properties with strong capital growth foundations.
The Big Takeaway
Don’t be fooled by a cheap price tag or a single stat. Use data as a conversation starter, not the final verdict. Focus on properties that will appeal to a broad base of owner-occupiers and prioritise lifestyle drivers, long-term fundamentals, and thorough due diligence to build a portfolio that lasts.
Gold Nuggets
Cate Bakos’s gold nugget: Delve further if you are engaging a Buyers Agent who is reliant on this suburb data. Cate shares some good questions for consumers to ask.
David Johnston’s gold nugget: Dave delves into the psychology of property. What is it that makes people gravitate to particular suburbs and specific properties? “Whatever points someone might be making to you with a sea of data, the underlying principle is this: How many people in Australia would like to live in that property, in that street, in that location? That’s going to drive up your rent and your value over the next ten, twenty, thirty years.”
Mike Mortlock’s gold nugget: Mike talks about the necessity of understanding the growth drivers, (and specifically the owner-occupier appeal) of the investment purchase.
Resources:
- Ep. 7 How to assess and select property like an A-grade Buyer’s Agent
- Ep. 8 Interpreting data to uncover an outstanding property and location– and how to sort the gold from the lies, damn lies and statistics!
- Ep. 14 How to choose a location for investment – what to look for and what to avoid
- Ep. 102 How to determine property market values by using comparable sales
- Ep. 216 Valuing Uniqueness – Appraising Properties with Special Features or Drawbacks
An overreliance on suburb data can undermine a property investment – API Magazine
