Be prepared to be amazed!
Never before has it been possible to compare 15,000 suburbs for their capital growth potential using a scientific measure of supply and demand.
Supply and demand determines which way property prices will go. That's it.
Would you agree, everyone finds property investment research very time-consuming and it can get quite overwhelming too? We understand that, and have made research and wealth creation a breeze for all level of investor.
Step 1: Get free access to the tools below
We'll send you all the tools listed below in a series of emails. It's also very easy to unsubscribe and we will never ever share your information.
1: FREE REPORT
We've done all the hard work for you. We've selected the top DSR scoring unit and house markets from over 15,000 suburbs for properties in the $200,000, $300,000 and $400,000 price brackets ... with the greatest potential for capital growth based on their statistical profile.
Imagine being able to calculate the gap in supply and demand (and therefore the potential for imminent capital growth) for over 15,000 suburbs by comparing them against millions of data insights from most of the leading publicly available property stats?
Now you can..PLUS... with Boomtown you can also rank suburbs from best to worst so that you can pick the very best location ... for your budget ... all in about 90 seconds.
Have a suburb in mind now? Want to know if it stacks up on most of the statistical capital growth indicators? Check its DSR Score and compare it to over 15,000 suburbs competing for your attention.
Watch the Boomtown Video below and see it in action. It couldn't get easier than this.
3: RESEARCH GUIDE
Imagine buying 7 properties that subsequently double in value in less than 3 years providing sufficient equity to buy another 9 properties ... on the average wage ... and all bought site-unseen (using desktop research)?
Jeremy did! (He's our head of research and creator of the DSR Score) ... and this 9 part series he wrote for YIP magazine gives you the detail. Get ready to breath a sigh of relief, it's now possible to find the best investment locations before everyone else comes along and pushes the prices up.
With Boomtown to hand, this guide is your new best friend.
Yes, please send me the above tools and make sure it's easy for me to unsubscribe at any time.
Step 2: Discover the DSR Score
The DSR (Demand to Supply Ratio) Score calculates the gap in supply and demand for over 15,000 suburbs (both units and houses) in seconds ... amazing.
That means you can focus on those locations where there are more buyers and tenants than there are properties to meet this demand, i.e. where prices are likely to increase in the near term as a result.
The DSR is important as it indicates a suburb’s likelihood of achieving capital growth in the near term, i.e. whether it will be a good investment. The DSR Score is measured using the following statistics for over 15,000 suburbs:
How to use the Stats Wheel.The ‘stats wheel’ describes each of the 8 property statistics making up the overall DSR Score. NOTE: Position your mouse pointer on each statistic label on the wheel for a description of each statistic
Renters vs Owner-OccupiersThis is the proportion of renters to owner-occupiers that live in a suburb. The lower this figure, the less supply of rentable accommodation there is. Owner-occupiers tend to take better care of their properties than tenants and are usually of a higher income demographic.
Online Search InterestThis is the ratio of people searching for property online to the number of properties for sale. The higher this figure, the more demand for property compared to supply for would-be buyers searching online.
Days On MarketThis is the number of days a property has been listed for sale. The lower this figure, the more quickly property is snapped up by buyers, showing high demand.
DiscountThis is the percentage difference between the original asking price requested by the seller and the eventual sale price agreed by the buyer. The lower this figure, the more demand there is since sellers don’t need to be as open to negotiation in order to get their property sold.
Stock On MarketThis is the number of properties for sale as a percentage of properties in the area. The lower this figure, the lower the supply of property or the more demand for it, or both.
Vacancy RateThis is the percentage of properties that are vacant. The lower this figure, the lower the supply of rentable accommodation or the higher the demand for it, or both.
Rental YieldThe percentage of rental income to property value. The higher this figure, the more demand there is from renters to live in the location.
Auction Clearance RateThe percentage of auctioned properties that actually sell. The higher this figure, the more demand there is from buyers since fewer properties are passed in.
The DSR score measures the gap in supply and demand for units and houses in an area.
The higher the score the better the chances of imminent capital growth.
The DSR Score compares 15,000 suburbs against eight leading supply-demand indicators:
- Rental Vacancy
- Rental Vacancy
- Unrealistic figures are either removed completely or given lower SR weighting.
- Statistics that have volatile changes from month to month are relied upon less than those showing consistency.
- Days on Market
- Stock on Market
- Vendor Discount
- Rental Yields
- Auction Clearance Rate
- Proportion of Renters to Owners-Occupiers
- Online Search Interest
Each suburb is given a summary score between 0 and 48 with 24 representing a market in theoretical balance, i.e. where supply meets demand. Investors are encouraged to search for suburbs with a score of 30 to 40 for an optimum mix of growing demand and some restriction in supply.
The DSR Score can provide a snapshot of a suburb’s statistical credentials or help investors cherry-pick a shortlist of potential suburb hotspots based on their personal requirements.
DSR Suburb Score Summary
DSR score 0 - 8 is Very Poor
Buyers are disinterested. For sale signs are gathering dust.
There is very little interest from would-be buyers in this over-supplied suburb. Sellers are desperate to make a sale but few do. Buyers can negotiate ruthlessly and still get what they want. Bargains can be found but expect negative capital growth in the immediate future. DSR score 9 – 16 is Poor
Buyers are few and hesitant while sellers are keen to offer them incentives. There is some interest from buyers but there are few of them and they can afford to be choosey.
Sellers are happy if they get an ordinary offer and are often prepared to accept inconvenient terms just to get a sale. Prices will remain flat if they don't drop.
DSR score 17 – 24 is Below Average
It's better to be a buyer in this suburb. Sellers need to be realistic. Supply only just outweighs demand. Buyers can afford to ignore sellers who aren't negotiable. Sellers will have to wait to get the price they want.
There is little driving capital growth so expect prices to remain flat or increase a little slower than the national average.
DSR score 25 – 32 is Above Average
Sellers are in no panic and buyers are making decent offers. This is a healthy market. Demand is ahead of supply but not alarmingly. Buyers are unable to get away with low-ball offers.
Sellers are getting the prices they ask for more often than not. Expect growth to marginally exceed the national average.
DSR score 33 – 40 is GoodThis is a sellers market. Buyers will need to move quickly. There is strong demand from buyers yet not enough properties to give them time to be choosey. Sellers don't have long to wait before they receive a healthy offer. Prices are being driven upward. Expect good capital growth in the immediate future.
DSR score 41-48 is Very Good
Buyers are desperate and sellers are licking their lips. Properties in this suburb are highly desired by buyers but there are very few available.
They have to act fast and make strong offers to get their foot in the door.
The few sellers are receiving many strong offers. The imbalance of demand and supply will drive prices in the suburb higher at a fast rate.
The score is the single number we apply to this measurement of supply and demand imbalance. The score is also useful for sorting the thousands of suburbs you might want to consider from highest to lowest DSR. You should be looking mostly 'in-between' as too high a score means bargains won't be available but also a low score means you might pay less but not enjoy a good investment return.
Make sure you read our YIP magazine 9 part series on the DSR Score. Send us your email address on this page and we'll send you the electronic booklet
The more sources of data, the more accurate the conclusions that can be drawn.
Data that has historically shown itself of a higher quality should be given more credit or weight in calculations. Unrealistic figures should be either weeded out completely or at least given lower credibility.
The higher the score the higher the reliability. 8 is the highest. There are 15,000 suburbs in Australia (approx) but on any given month we update the DSR score for every suburb keeping only about 7,000 to 10,000 of the suburbs behind in Boomtown.
The reason being is we throw out those that are simply not worth looking at due to very poor statistical reliability (or poor data). So if the suburb does not appear in the Boomtown drop down list or Hotspot Finder results, then you probably want to avoid it (or sell).
Statistics that have volatile changes from month to month should not be relied upon as much as those showing consistency.
All forward-looking predictions are estimates and putting a percentage on a suburb’s potential growth is very rarely accurate.
The DSR Score simply says "Suburb A has better indications of capital growth relative to Suburb B". These indications are based on the time-tested principle of supply and demand.
The DSR Score is a single number indicating capital growth potential. We recently tested how our top 100 suburbs in 2010 compared with the market average. The result was phenomenal. Our suburbs averaged 11.7% when the market average was in negative growth. It's up to you then to drill down even further into the data behind the score and the unique suburb factors outside the score. The DSR Score is a great start.
We also suggest you read all our previous articles on the subject of research and how to apply the DSR Score in practice. If you are time poor, then Hotspotcentral can indirectly assist with no cost.
Step 3: Manufacture your own capital growth
This is where it gets really interesting. Our proprietary hotspotting technology has proven remarkably accurate at helping investors pinpoint the best locations for imminent capital growth ... the true source of wealth.
Now it's possible to create your own capital growth by acquiring brand new property at the same price a developer would pay, saving as much as 20% on bank valuation.
Paying developer's cost price means:
- NO commission - no selling agent involved
- Instant equity - you keep the developer's profit
- Positive cashflow - lower the cost base, inflate the rental yield
- No deposit - use your profit for the holding deposit on completion (and take out your original investment).
- No Stamp duty (potentially)- check webcast for details
Our experienced team do all the work while you take all the profit.
Here are three of our most recent projects:
- $102,500 - Savings / Instant Equity
- $312,500 - Estimated Cost Price
- $415,000 - Estimated Retail Price of brand new townhouse on completion
Sold out in 2 weeks
- $103,750 - Savings / Instant Equity
- $496,250 - Estimated Cost Price
- $600,000 - Estimated Retail Price of brand new townhouse on completion
- 5kms from Brisbane CBD
- Cash on cash return 52%
Sold out in 72 hours
Centenary Heights, Toowoomba
- $70,625 - Instant Equity
- $329,375 - Estimated Cost Price
- $400,000 - Estimated Retail Price of brand new townhouse on completion