Our Unique Approach

Plum Property has developed a unique scientific approach to identifying the best investment properties across Australia. There are an enormous number of properties available for purchase, so one of the problems for investors is “information overload” when they attempt to sift through all of the competing possibilities.

To address this problem we have implemented a systematic “top-down” approach, which involves thorough information gathering, careful analysis of markets, prices and trends, and progressive targeting at the state, region, suburb and individual property levels. This logical approach gives our clients the benefit of an objective view across all the possible opportunities, and protects them from being caught up in short term emotion-based fads, or opportunistic decision making based on limited information.

The key to successful property investment is research.

Step One - Where to Buy

We evaluate the investment “climate” at a macro level. This requires an analysis and assessment of each region and suburb against a number of criteria, including:

  • Economic: We examine the drivers of capital growth and rental yields in each state, including the current resources boom. We assess the sustainability of economic conditions, and we particularly look at the diversity of local economies.
  • Demographic: How is the population changing and moving? We study demographic shifts such as international and interstate migration, the aging of the Australian population and movements to coastal communities.
  • Infrastructure: We look at both private and public spending on infrastructure such as new rail and road links, mines, schools, hospitals, shopping centres and industry developments.
  • Housing Supply and Demand: We look for long term imbalances between home building and demand for homes, searching for forecasted housing shortages.
  • Rental Yields: We research vacancy rates and rental trends in all our target locations to locate areas of high demand.
Our Research:
  • Research Reports: We regularly review all major reports dealing with property markets and trends. These publications include the Macquarie Property Outlook, Herron Todd White national and state real estate reports, and the Midwood Investment Report.
  • Expert Opinion: We subscribe to all major property publications, magazines, newsletters and websites providing commentary by experts in the property investment field.
  • Databases and Forecasts: We subscribe to both RP Data and Residex Market Facts. These provide details of all properties on the market, sales, and analyses and forecasts of price trends. For example, Residex provide forecasts of capital growth for every postcode in Australia, based on statistical analysis of all available historical sales.

We utilise all of the above criteria to continually review our recommendations on the areas with the best prospects for growth and rent. None of them alone is sufficient - our scientific approach is based on weighing up all these criteria.

This is our job, it's what we do. So our question for you is this: if you agree that this is the most sensible approach to property investment, do you have the time and resources to do all this yourself?

Step 2 – What to Buy

Buying in the right area is only the first part. To buy successfully you need to buy the right property at the right price. To identify the best properties we look at:

  • Proximity: To schools, shops, transport, recreational, areas of employment.
  • Land Size: Larger land size drives up capital growth;
  • Type & Configuration: Is this the type of property tenants in that area are looking for? Does it have features attractive to tenants, such as 2 bathrooms, 4 bedrooms, under cover outdoor entertaining areas and 2 separate living areas?
  • Age of the Property: Newer properties will have a longer life, maximum depreciation benefits, appeal to tenants and minimum maintenance.

Step 3 – Inspection

An essential part of our process is to inspect the property, to assess it against our 30 point Inspection Criteria. We have found that many properties that look good on the internet are in fact lemons. We need to see the property before we will recommend it. We look for:

  • General condition and state of repair.
  • Streetscape: Is it surrounded by well looked after properties? Are the neighbours bikies?

The benefits to you the buyer are that you will have the best chance to optimise your investment.

Our final selection is also based on a thorough review of the history of sale prices for that property and similar ones in the surrounding area.

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