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Subscribe On AndroidNote: This episode is a re-run of one of our older episodes. It originally aired on 12th November 2015 😊
In today’s episode, we dive deep into why the old adage of ‘location, location, location’ still rings true for property investment. We explore how 80% of your return is determined by where you buy, and only 20% by what you buy.
One of the three filters in our asset selection criteria is scarcity, and today we take a close look at that concept. What exactly do we mean when we refer to scarcity in property investing? Are there certain elements in particular to look out for that will increase your property’s value?
Throughout the episode, we’ll also underscore the importance of considering owner-occupier appeal in your investments, why developers favour high-density projects, and why smaller investors should hone in on scarcity in top-tier locations.
Get comfy because this bonus episode is all about helping you understand the crucial role of scarcity and how it can ensure your next investment decision is a savvy one!
Free Stuff Mentioned
- FREE PROPERTY REPORT: Learn how your suburb is performing in this comprehensive 39-page report. A treasure trove of data insights + 20 key stats covering long-term growth, market cycle timing, days on market, etc. Get it while it’s free!
- Previous episodes with Peter Koulizos – The Property Professor
- Ep 30 (Part I): Five Golden Rules of Property Investment
- Ep 30 (Part II): What is Gentrification and Signs to Look Out For
- Ep 204: What He’d Like to do About Negative Gearing
- Ep 241: 12 Steps to a Profitable Property Development
- Ep 288: How He Survived Multiple Recessions & Why He Still Believes in Property, Even During a Pandemic
- New to The Property Couch? Download our Binge Guide – 20 of the first episodes condensed into one easy-to-digest booklet!
- Download our first best-selling book for FREE: Make Money Simple Again
- Get our second best-selling book: The Armchair Guide to Property Investing
- Check out our brand-new app – Moorr. This free app automates money management and lets you create your lifestyle by design!
Timestamps
- 0:00 – Exploring “Scarcity” in Property Investment
- 04:16 – When searching for your next investment, try asking the agent this question…
- 06:33 – 3 important filters when it comes to asset selection
- 07:24 – The two different parts to scarcity
- 07:33 – 20% of your return comes from the property, while 80% comes from the…?
- 11:46 – Consider the property’s proximity to the CBD…
- 13:56 – …as well as whether the land is fully utilised
- 14:28 – Peter Koulizos on the 3 Ls of property value
- 21:51 – Choosing the correct property is important, even though it only represents 20% of the formula!
- 24:21 – Linking back to the Buyer’s Decision Quadrant
