The Ultimate Guide To Renovation Course - Module 3: Your Target Market

So welcome back. So now we're going to dive into the lives of the people who live in our suburb Coburg in this example. So as investors, why is it important to know about the people in the suburb? For instance, is it important to know that most of the people catch public transportation? Well, yes, because you want to have a property close to public transport. But what if most of the people drive to work? Well, you're probably going to want a garage and be close to freeway access. So this really determines where you might buy a property within a suburb. So it's really important that we get to know the people in the suburb. So let's get into the census information and find that out. So I go to the abs.govau website and I click on Census. Now in this example I'm going to put in Coburg. So I can See here There's 25,000 people in Coburg, 6,000 families, 10,000 dwellings, average of 2.6 people per dwelling. So a little bit of information about the area. I've got a nice map here and I'm going to start looking at the information that I want to record in my workbook. So the first information that I want is I want to find out about the ages of the people and not just the ages in isolation of these people in the suburb, but how they compare to the state. Because I want to get an indication if there's more than a certain amount of children, for instance. So I have to highlight my property to be next to schools, for instance. So let's have a look at that. So I'm going to go under people and I'm looking at the age groups here. Now in the workbook you can actually determine what age groups that you want to write down and which ones you want have relevance. You might add some age groups together, for instance. So I'm just looking here and I can see that Coburg versus Victoria, 7% of kids between 0 and 4, 6.4 on Victoria, 5.9, 5 to 9 year olds, 5.6 which is a little down on Victoria 10 to 14 year olds, 4.3, little bit down on Victoria, 15 to 19 year olds, 4.7. So not a lot of school age kids. So in some real family areas you get to see that there's a really a large percentage of children within those age groups. Now if I Look here at 20 to 24 year olds it's 8.3% compared to 7% for Victoria. So I'm starting to get an indication that that younger age group is between the 20 and 24s got an in demand in this area between 25 and 29 I've got 9.7 compared to the rest of Victoria at 7 point. So 30 to 34 year olds, 9.1 compared to 7, 35 to 39 year olds, 8.9% compared to 7.2. 40 to 41 I've got, sorry 40 to 44 year olds, 8.1% compared to 7.3 and then it starts dropping down again 45 to 49 we're below the Victorian 50 to 54, below 50 to 59, below 60 to 64 we're below and we drop down. So we can see here that in actual fact the key demographic that I'm looking here I would say would be between the 20 and 44 years. So I'm going to write some of those down. 10 to 14 year olds is the age statistic here and in the suburb we've got 4.3% and in the state 66.1. So this indicates to me for later use and I can put this in my notes that potentially, you know, that school age group is not that important that I have to concentrate on. If I go up here and I have a look at the 20 to 24 year olds for the states so suburb we've got 8.3 and 7% for the state. If I go for the 25 to 29 year olds I've got 9.7 compared to 7.3 and if I got the 30 to 34 year olds so it indicates to me that that kind of age group is an anomaly when looking at Coburg with respect to the rest of the state and it just gives me some indication that potentially we're looking at that two to three bedroom house. So it's just substantiating what I've found out in the past information that I've done. So let's have a look at the family statistics now. So we can see here for Coburg, 44% of the population so we've got married compared to the state of 49.1 we've got never married. So I'm just going to pick up on the things that really have I think stand out. So 42% have never married compared to 34.6 for the rest of the state. So this might indicate to me that we're looking at shared accommodation. We might have people renting together and friends renting together which definitely is substantiated by that younger demographic of the 20 to 44 year olds that we saw there and the higher number in Coburg I might put down. We've got some divorced people, we've got some widow people. Nothing that really stands out. So I'm not going to write it in there. So let's now look at the typical occupations of the people in the area. So we've got here 30.8% are professionals compared to 22.3%. So professionals. Then we have clerical. So these are the top five clerical at 15.1 compared to 14.4. So you'll see here that the professionals, there's a whole lot more professionals compared to the state. But, but when we have a look at the other occupations here, they're pretty much comparable or less than what the state typical number is. So professionals by far are those that are living in this area. So far I've got the information that indicates to me that we're looking at a younger demographic of adults, so 20 to 44. We're looking at people who have potentially not married and they're professionals. So young professionals living the high life in Coburg. That's the information I've got so far. So let's just go through and have a look at the, the next information on my list which is the education. So what I'm trying to get a feel for here is the demand for being next to a school or potentially it might indicate to me that there's a university in the area if there's a very large proportion of tertiary education numbers here. So let's just have a look as we scroll down here we've got preschool, 5.5% compared to 5.6 for Victoria Primary Government School 11% compared to 16, Catholic schools, 7% compared to 5.8. So you know, compared if we're looking at this is 18% of kids, 18, 20% of kids in primary schools compared to the rest of the state where we've got 23%. So you know, not. So it's kind of low. We've got secondary schools, we've got 7.5 in government schools, 4.6 in Catholic schools and non government schools 2%. So, so once again we're looking at here about 14% in secondary schools compared to over 20% here. When we look at the rest of Victoria. So being close to a school, I'm not really getting a feel for the fact that being near schools or the fact that there's a large population of school age children in this area, that's important. Now if I did have say for instance the preschools, there was a large percentage of preschools Then in future years, obviously I'm going to have my property for a long period of time. I'd anticipate that they're going to go to school in the area. So being close to a school could be something that I'd consider in this case. I'm not that convinced that catering for mum dad with the kids in my property that I purchase is that necessary. If I look down here in tertiary or further education, 8.2 compared to 7.3. Once again, not that significant. At university though we've got 23.5% compared to 15%. So that's quite significant. And I'm actually going to write down here. So with these blank spots here, you can fill in any of the information that you feel relevant. In this case, all I felt was relevant was noting down the fact that from a schooling point of view, not that important compared to the rest of the state, but it does indicate to me that there are people at university. So interesting information. Now let's get onto that transport to work. So, so let's have a look here. We've got car as a driver, 47%. So 47% compared to 61 for the state. Now remember the state has a lot of country in it, so a lot of people drive cars but, you know, 47% indicates to me that, you know, almost half the population here drives a car. So I'm thinking that having a garage or a carport at least would be important. So bus doesn't come up here for Coburg but tram does. So I might just knock out bus and write down tram there because it's more relevant for where we are. So 9.4% compared to 1.7 in the state. The train we've got at 9%. The importance of this here is not actually comparing it to the state because obviously public transport or how people get to work differs whether they're actually in capital city or not. What's important is how it compares to each other. So I see that 47% of the population here is actually drive to work and around about 10% get the tram. So I've got a real clever, I guess a real bit of information here. Around 10% of people get the tram, but 10% also get the train. So it gives me an indication that tram and train as public transport is important, but not as important for those that live in this suburb as having a car being able to drive to work. So it gives me a little bit more information about what's happening in this suburb. So let's continue with this and have a look at the type of dwelling. So here I go to the next section. I'm just going to jump down to the dwelling section here and you can see here it allows me to pull up where people live. Now we have our suspicions on this, so let's substantiate it. So we have here a detached house. So 72.6% of the population, a semi or a terrace is 13.9 compared to 9.6. A flat unit or apartment, 13.1 compared to 12.9. And if you want to put down something other, if something comes up on the information here that you want to note down, once again it's important to look at them in context to each other rather than to the state information here. So 72% of people in Coburg want to live in a house, so obviously only 13% want to live in a unit. So. So the unit is not the in demand property for this suburb. So you know, I wouldn't be looking at buying a unit in this suburb. Obviously you could do all this analysis for units as well. We're doing this for houses, but I know that a house is definitely what I want. So let's see how many bedrooms people want to live in. And it's the next section down. Just to substantiate my thoughts on the number of bedrooms. So I've got here two bedroom houses, 30% of the population, three bedroom houses, 4, 46% of the population and four bedroom or more 15%. So this now absolutely solidifies my suspicion that we had earlier that three bedroom houses in Coburg are the typical property and the in demand property that we want to really put into our filter of all the properties that we are looking for when we're coming up with a property that we want to buy and inspect. So I'm just going to note down that here that the three bedroom is the typical property in my notes. So actually I might even write down here two bedroom is 31%, three bedroom is 46% and four bedroom is 16%. So I know three bedroom is my typical property. Now the final piece of information is the nature of tenancy. Now remember, I want to have between 3:30 and 70% renters in my suburb. So it's important that I actually have that so that I have demand for my property if I'm going to rent it out. So let's have a look at the percentage of rented properties here. We've got 30.4% compared to 26.5% in the rest of the state. Fully owned, owned outright 34.3% compared to 34.2 for the rest of the state. Purchasing owned with a mortgage is 30, 31.5 compared to 35.9. So I'm always looking for between 30 to 70% renters in the suburb if I'm going to be able to buy and hold my property and obviously rent it out. But what do you think is the percentage of renters that I want in a suburb if I have a buy and sell strategy? Well, obviously I want the demand for people who want to buy and live in that area because my target as owner occupiers and as I can see here, those purchasing their own home is 31%. So it's very similar 30, 30, 31% of people who own their own home, those that are renting and those that are purchasing. So over 60% of owner occupiers in this suburb. So if that's your strategy, it's a good indicator. So in the next video, what we're going to do is get down to the pockets of potential within the suburb and we're going to go from the suburb level down to the street level. So let's do that in the next video.