The Ultimate Guide To Renovation Course - Module 3: Individual Suburb Analysis

So now we're going to dive into the individual suburb analysis and if you remember from our last video, we chose Coburg. So grab your workbook and let's get into the data. So I'm going to write down here Coburg. Now it's also really important that you put down the date of your analysis and the reason this is important is because you might want to come back and actually refer to this in the future. So put down the date of when you've actually done this information and this assessment. Now you can see here compare your selected suburb to its neighbouring suburbs. Now you remember we actually have that data from step three. So we jump back into the suburb selector software and we have a look at step three and we start looking at the neighbouring suburbs around Coburg. So let's do that and jump back into step three. So here we have Coburg. Now here are the surrounding suburbs. Now this is just where you write your notes. Anything that comes up that's of interest in the area. So Coburg's 8km from the CBD, 740 price. We have that quarterly growth the last year, 3 years, 5 years and 10 year growth and the rental yield. So this is really good information for us to compare. So Coburg north is a little bit further out. So 640,000. We've had a little bit more growth here in the last year, but over the last 10 years Coburg north has also had more growth. We have some really good rental yields here. Pasco Vale south, not so good. I think we knocked that out earlier in an assessment because of that. Pasco Vale, once again, not so good in Preston. So let's just have a look at those suburbs that are closer. Brunswick, as we can see it's a higher price point and it's had some really good growth over the last 10 years. And about the same yield. We have Brunswick west, which is also closer, another higher price point. And we have Brunswick east at 800-8000. So a higher price point and once again close to the city. And when you look at that comparison of those areas in the last 10 years, you can see here that they've all had about the same amount of growth over the last 10 years. So there's nothing here other than the fact that, you know, we've had in the last quarter quite a substantial growth in Brunswick east, which helps indicate that there might be that ripple effect that's happening. So we can see Brunswick east is actually 5K's in the CBD. We can see here that there hasn't been that much growth in the last quarter or year in Pasco Vale. So here, look, there's not much that I would note down here other than if I was going to write some notes, I'd say surrounding suburbs. Closer to the CBD support our assumption of higher price points and indicate long term growth in this area. So this is just your opportunity to write your own notes of the information that you feel that's relevant from your assessment. So you don't have to keep going back to the data. Now we've got here. Also the second section is around the capital growth. Now I've actually included in here because we actually went through and had a look at that. But what you might just note down here is that over the last 10 years, so the 10 year growth for Coburg has been 7.5% and that is typical of the surrounding suburbs. And we're also going to have a look just over here at where the last lot of growth's come through. So you can see here over the last quarter it's had 3.6 over the last year, 8% growth. Over the last three years, 8.5 growth. So this is really good growth. There's been some other areas that are closer in that have more growth. So we've got 12.2% and 10% over the last year and three years in Brunswick west and Brunswick east we've got the same. So a lot more growth. So I would also note down that the suburbs closer to the CBD and you can list them if you want. So Brunswick west and Brunswick and Brunswick east have all had had higher growth in the last one and three years. Now I don't typically look at short term growth, so the quarterly growth is interesting, gives me an idea what's been happening in, in the immediate past. But really I'm not going to do an entire assessment based on the last three months of what's been happening in suburb. And that's why we try to look at the total 10 year growth and then look at the last 8 years, 5 years, 3 years, 1 year growth. Any of the information you can get so you can actually get a feel for what's been happening in the area over a longer period of time because we don't want the little blips that happen in timelines to actually affect our judgment. So this is a really good kind of indication, give you a summary of why you've actually chosen Coburg as a suburb. Especially because if you come back to this in six months time, you're going to look at it and Go why did I choose that? Or you might come back and look at it and go oh, why did I go with the other suburb? This one actually was the one that stacked up and look what's happened to the prices. So this is really good information. So let's move on to getting some more information here. So I have a look at the paid report score. What I'm going to actually do is I'm actually going to look at where this suburb has actually appeared in all my reports because I don't want to have to go back to all the reports again if I want to go and do a quick analysis on this suburb. So you might remember if we go back to our dot map exercise, Coburg did not appear in the 2% area and it did not appear in the 1% area. So I'm going to put crosses under the 2% and 1%. It did not appear. So here it appears in the predictions report. You remember Coburg appears here at 44. So I'm going to go over here and write down 44 here next to predictions report. Then the next report we had was the renovators report. Now Coburg appeared here at number seven. So I'm just going to go over to the renovation report and go number seven. Now you might recall didn't appear on the Ripehouse report and it didn't appear on the terry Rider Top 5 Report for Melbourne. So I'm just going to put a cross in in both of those boxes. So I now know from the paid reports that it's appeared twice. So I actually might want to write some notes down here. So for instance, I might go back and say Residex has predicted growth of what we got here, 5% per annum in the next five years, 6% in the next eight years. So obviously those last three years are going to have a bit higher growth and it appears on the renovation report. So I want to see as 102 streets with Renault potential. So this is just where you can summarise all that information that we've collated earlier. So let's move on to the next section. This is where we get in and we really grab that suburb data. Now most of this is being pre populated over here in step three. So all we really need to do is pull it out of the suburb selector software and put it in here. So let's do that now. So we've got Coburg here. So we're looking at the last one year growth of 8%, the last three years growth of 8.5%, the last five year growth of 3.8% and 10 year growth of 7.5%. We've got a rental yield here of 3.5%. We've got the median rent 460 per week, the vacancy rate of 1.8%. We've got stock turnover information just here of 3.9%. So we have sales volume per year of 323. We have days on the market and the last thing I want to pull out of here in step three is percentage of renters and we've got 30.5% and we also have an average crime rating. So we have the vendor discounting information here. So it does appear for COBURG We've got 8.18%. Now we go on to average hold period. It gives you a bit of a feel for the suburb, whether the people in the suburb like staying in the suburb or whether there's a lot of turnover. So it's an interesting indicator that actually gets you a bit more information about what's happening in the suburb. So this average hold data you can get from a number of places. I'm grabbing it from the your investment property magazine and I'm going to go through here to Coburg. So it's in the data bank at the back. So I'm going to go through and find Coburg postcode 3058 and I'm going to run down here and look at average hold period. So average hold period for Coburg we're looking at here 15 years. So the average hold period is 15 years in Coburg. So this is where I grab this information from and then I can fill it into my book. So let's do that. And the final stat I have here is typical land size. Now this is important because I want to have a look at what's the typical size of the property that I might want to buy. Because if I'm comparing say a property on the market that only 400 square meters and I think I'm getting a bargain because it's only $400,000, whereas the typical comparable data is actually reporting sales of 600 square meters. I want to know what the typical size property is. Now this information once again you can go to a number of different areas to get that. I like going to sqmresearch.com and I'll show you where I find that information. So SQM research. And I enter in either the suburbs, COBURG or the postcode 3058. Now this is a price per square meter coefficient curve that SQM generates and it's really interesting. You know, it's supposed to be used for different reasons, but this is where I like to go really quickly to see what the typical size properties. Now obviously if you have access to RP Data Professional, you can do this comparison very easily as well. But for those who don't have that paid software, this is where you can have a look. So what's really cool here is it has a look at that whole postcode and then it compares it to North Melbourne itself. So you can see those lines. But these individual black dots actually represent individual properties. So what I'm looking at here is actually the individual properties that have sold recently and what in the last year and what their typical size is. So somewhere here between 300 square meters and 500 square meters I would say is where most of the sales occur. So you might decide 350 to 450 is the typical size property. So we might just put 400 square meters down here in our note in our notebook. But in our notes section we might just write down that the typical land size actually ranges. So we're not going to be too worried we find a property at 350 square meters or a property up to 400, even 500 square meters. So let's just note that down. Now for those people who are looking at a real twist strategy and actually possibly want to put a subdivision in, it's interesting here to have a look at the information. So if you're buying a 600 square square meter block, you want to see if there are actually sales of 300 square meter properties and that's where you can actually pull this information from. So those people looking at maybe a twist on their strategy and subdividing, it's very hard to get an idea of whether there is actually demand in the area. And this might help you. So some really good information. So let's actually write down some notes about what we've got here. The rental yield actually fits obviously our criteria. We know what the median rent is. The vacancy is good. The percentage of renters is just over our limit at 30.5. We've got an indication here that people hold the properties for a long period of time. So there's nothing here that completely stands out to me that I want to make note on. Other than the fact that you might recall when we had a look at step three and step four when we did this analysis in the suburb selector software that the days on the market had changed. So if we just go back here and have a look at that, we've got the days on the market in the last quarter have increased. So the days on the market in the last quarter is 69, but in the last year has been 58. So we indicate that these have actually increased. So it might actually indicate there's been a slowdown of sales in the area. So, as you can see, there's not a lot of information that really stands out here. But but this is where you've got the capacity to write some notes and things that you might want to come back to and look at in the future or something that's just kind of piqued your interest. So, for instance, around that typical land size and on the days in the market. So something you might just want to track. So in the next video, we're going to move on to another website where we're going to get a whole lot more information about this suburb as we delve deeper into it.