As a regular on their expert panel, in December 2013, I was invited, along with other property experts, to submit my 2014 top suburb picks to Smart Property Investment (SPI) Magazine for its ‘2014 Fast 50’ annual market forecast.
At the same time, my little girl, Olivia - then 6 years old - used our capital growth calculator, Boomscore, to pick her own shortlist of investment hotspots in 2014, that two years later had grown in value on average 40.97% for houses and 32.82% for units. The Australian market on average had only grown 12.33% in the same two-year period (Jan 2014 - Jan 2016).
She beat the property market experts!
Boomscore rank-orders all 15,000 Australian suburbs by their capital growth potential, based on the 8 Demand or Supply indicators we’ve covered in this ‘Essential Guide to Property Market Research’.
As Olivia proved, anyone can do it and it took her about 90 seconds using the Boomscore ‘Hotspot Finder’ feature.
So, did Olivia manage to beat the property market experts?
We asked an independent data analytics company to audit both the average capital growth for little Olivia’s top 50 and the SPI experts’ top 50 from January 2014 to January 2016.
Keep in mind, a lot of work went into the 'experts’ list’.
Each expert would have done their own research, looked at the data and the fundamentals and finally submitted them to SPI magazine. SPI magazine would have compiled the final list from the many options submitted by all the experts and finally created its ‘2014 Fast 50’ Report.
This would have taken hundreds of hours and a huge amount of collective experience by the renowned panel of experts and the magazine’s staff.
But now let’s consider the results.
From January 2014 – January 2016, the national (Australian) average capital growth was a very solid 12.33%.
Here’s how Olivia's predictions with Boomscore faired ...
Remember, we had this independently verified - it’s not our analysis proving our own data.
But we weren’t surprised by this result as our property market research tool regularly beats the property market.
In 2014, we analysed the performance of all 15,000 Australian suburbs between 2010 and 2013 when the market was in negative growth territory. That’s when the property market average capital growth for three years was -1.7%. Pretty dire, right?
We then looked at our top 100 suburbs predictions at that time and analysed the subsequent capital growth of these 100 suburbs during the same three year period – they all averaged 11.85% (way above -1.7%) … and in a negative market.
This result was also better than the experts then too. The annual top 100 suburbs picked by experts for Australian Property Investor (API) magazine at the time, while much better than the market average, only grew by 7.3%.
The data does not lie … and Boomscore predictions (based on the stats) continue to outperform the experts. And we scanned the entire market to produce these predictions in just 90 seconds.
Like Olivia - always trust the facts and the data.
This guide is now complete, but your property market research journey has just begun. With this knowledge and the Boomscore tool, you too can beat the property market experts and build wealth from pure organic capital growth.
Congratulations on making it this far. You are now an expert in the supply and demand forces that drive the property market. You know how important it is to determine the ratio of demand to supply for all locations so you can pick the very best for investment.
Here at Boomscore, we’re all rooting for your success and want you to remember that whenever a question comes up about investing in real estate, we are here to help.
We know that research is the cornerstone of getting it right in property investing and property development. It is hard work — but done right — it can be very rewarding.
Hopefully this online Guide will be a lasting asset empowering you to achieve your investing goals. And if you would like to digest more interesting property market research information from us, pop along to our blog and have a browse.
Thanks for reading and best of luck from all of us here at Boomscore, including Olivia (our now big teenager)!
Article by Michael Fuller