Street-level success: the final piece of the property puzzle

Street-level success: the final piece of the property puzzle

We’ve covered a lot of ground in this series so far, and come all the way from looking at top-level state views down to individual suburbs which are taxiing on the growth runway.

 

A worrying number of investors tend to pull the trigger right about there when it comes to selecting a property, but that’s not the Ripehouse way.

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We know that a final piece of in-depth research on the street level is the key that unlocks truly outstanding returns.

 

Our reasons for digging deeper are very similar to those that drove us from LGAs down to an individual suburb in the first place. Just as not every suburb will really come good in a rising market, so individual streets can radically underperform their neighbours over time.

 

We’ve got the data to back this up across the board in individual case studies, but even a quick trip around your own neighbourhood should be enough to make the point clear – some streets are simply never going to sell in their current states.

 

Finding the Ripehouse Sweet Spot on a Street-by-Street Level

Street selection is such a key part of our overall methodology that we actually refer to it as the Ripehouse Sweet Spot. Find that sweet spot, and you’re amplifying the impact of every good decision you’ve made to get this far. Get it wrong, and you’re putting your overall investment strategy at risk.

 

Based on the huge amount of street-level research we’ve carried out to date, we’ve identified a select set of key factors which (when combined) deliver 21.9% more capital growth in relative terms compared to the rest of a suburb. We’ve also found that there’s typically only 10–15% of a suburb where these factors are all in effect. Let’s look at what defines them:

 

1.    Low public housing: We typically look for under 15%.

2.   Availability of in-demand property type: For example, if four beds are hot in the local market, we need to be sure there’s enough on-street availability to match demand.

3.   Strong tenant demand: We’re looking for a combination of high rents and yields with above 33% tenant demand.

 

As you might imagine, the odds are against you if you’re hoping to stumble into those sweet spots by chance!

 

Our ability to track and analyse on-the-ground data in real time means that you won’t be relying on luck, however.

 

You’ll be presented with a range of streets within your chosen suburb that match the criteria and are primed to start delivering returns straight out of the gate. While others are hemming and hawing their way around individual streets based on little more than gut feeling, you’ll be confidently making data-driven decisions that provide an immediate return.

 

We hope that our series of articles has helped shine some light on just how important access to real-time data is at every stage of our selection process, and how we go about serving up high-growth opportunities across the country to our users.

 

If you’d like more detail on any of the areas we covered, or have specific questions to throw at us, please feel free to follow up directly.

 

We’re always happy to help!

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