Where big data starts driving meaningful investment decisions

 Where big data starts driving meaningful investment decisions

So far in our series, we’ve stressed the importance of two broad areas when it comes to targeting high-growth investment prospects: widening your catchment area, and making intelligent use of real-time market data.

Though both are excellent strategies, they pose an inherent challenge in terms of your investment focus when pursued in tandem. 

With a sea of nationwide data in front of you that’s being updated on an hourly basis behind the scenes, how on earth do you start effectively narrowing your search down? 

That’s where the magic of LGAs come in.

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LGAs Hit the Sweet Spot for Market Selection

While we’re always keen to stress the fact that investments need to make sense across all levels of our investment funnel, there’s one view in particular that delivers outsize value on its own terms.

LGAs provide an almost ideal sample size for identifying groups of suburbs which are doing similar things at a similar time. They allow you to both quickly spot opportunity and meaningfully compare it across different areas of the country.

This is an important point to highlight early, as it enables you to dodge a series of classic investment slip-ups that can catch out even experienced investors. At one end of the scale, if you place too much emphasis on national or state-level trends, you willingly blind yourself to what’s actually happening on the ground. 

On the other hand, if you zero in too much on a particular suburb or street, you run the risk of entirely overlooking wider factors that could ultimately determine whether an individual property sinks or swims.

LGAs are the sweet spot that give you the best of all possible worlds, and they’re very much where you want to be focusing a large amount of your initial attention when narrowing the field.

Ripehouse Puts LGAs to Work

The good news for investors is that the unique combination of detailed historical insight and real-time data which we offer has enabled us to make a huge breakthrough when it comes to analysing LGAs across Australia.

The first level of our analysis helps you effortlessly find areas which are primed for growth. Our system starts by automatically sifting through a basket of overall LGA utility factors such as the level of infrastructure and services, presence of big brands, and wider cultural considerations such as gentrification trends.

With potential growth targets identified, we’re then able to analyse precisely which stage of the LGA growth cycle an individual area is at. By looking at literally thousands of these across many years and markets, we’ve managed to nail down a distinct set of five growth stages that virtually every LGA moves through, and we can use that information to help you perfectly time your next investment.

The upshot of all this for you as an investor is huge. You’ll be aware of potential growth hotspots well in advance of the market at large, and then actively monitoring leading buyer behaviour indicators in real time in order to strike when the iron is truly hot. 

Rather than haphazardly chasing growth, you’ll have the pleasure of spotting its potential early and watching the market come around to your point of view.

Much of that potential LGA growth is, naturally, going to be concentrated in specific suburbs, and you need to pick the right ones in order to maximise your potential long-term upside. 

That’s precisely the topic we’ll be turning our attention to in the next installment, so be sure to keep checking in with the series!

 

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