Freedom’s Property Analyst Predicts Top Growth Suburb Two Years in Advance
Who has not wished for a crystal ball to predict the market trend in order to know ahead of time where best to invest… Of course, we all have.
But, in the lack of having the magic device of prediction or future vision, what does one do?
Who has not wished for a crystal ball to predict the market trend in order to know ahead of time where best to invest… Of course, we all have. But, in the lack of having the magic device of prediction or future vision, what does one do?
If you are like most property investors vying for the perfect location and property to deliver positive cashflow and capital growth, you shuffle through online data, sales history and the plethora of opinion pieces out there. Then, bounce your findings off dozens of real estate agents (and family members) – and then hope for the best.
Lianna Pan, chief analyst for Freedom Property Investors however takes a very different approach, one that has led her not only to build a property portfolio of 30 properties in under 10 years, but to predict the growth curve of the meanwhile number one performing suburb in Melbourne – but did so two years ahead of time.
In 2017, Lianna Pan, a former actuary turned property data scientist and professional investor was advocating the unseeming suburb of Eynesbury in Melbourne’s West. After extensive, thorough research and applying her fine-toothed approach to due diligence, the Freedom Property Investors community co-founder suggested that this would be the next high-growth suburb to invest in.
This was presented publicly at seminars in June 2017 with 47 investors opting to invest in the ear-marked location into an off-the-plan house-and-land project with an entry price tag of between $449 500 and $599 800. While many property investing experts were seeing a cooling of the Melbourne growth curve, Lianna’s prediction (see the video here) held true bringing a capital gain of between $55 000 to $110 000 for the Eynesbury investors to date.
And, while other investing firms were still advocating Melbourne over Sydney locations in 2018, the Freedom Property Investors chief analyst already identified high-growth cash flow positive property projects in Brisbane, again picking locations and projects that out-performed surrounding locations.
If you had jumped onto the bandwagon too late, as is common with so-called ‘mums and dads’ investors, well you would have bought on the tail end of Pan’s prediction and bought in Melbourne in 2018, which meant you would have seen a 12% downward slide of property values, a hurtful dint that only time can heal.
“Timing is as important as sourcing reliable data and undertaking detailed due diligence,” says Lianna Pan.
“Most public domain property data is literally just the tip of the iceberg and unless you go a lot deeper into the many aspects required to identify the right investment location and properties, for many, investing is more of a hopeful gamble,” she says.
Some of the key indicators Lianna used to identify Eynesbury as an investment hot-spot were the high owner occupied ratio (around 90%), higher median house prices and the median price growth of neighbouring suburbs, strong population growth of the atrea (5.5% highest in Melbourne), the low wage-to-median price ratio (4.2 in Eynesbury) and then the relatively low entry price.
Nick and Tracey Barnett, a Sydney-couple with three young children were looking to buy their first investment property due to the fact that Sydney prices meant they couldn’t buy where they wanted to live. They sought out alternative locations, and not wanting to leave things to chance, went to join the Freedom Property Investors community.
“While it was a bit scary to jump in and invest into a market we were not familiar with, the support, detailed research and education certainly made up for it. And, we could not be happier,” says Nick Barnett.
“We bought a house-and-land package in Eynesbury off the plan and now, we have already made almost $100 000 before it has even been completed. We could not have asked for a better leap onto the property ladder,” says Nick.
Meanwhile, Pan and Freedom Property Investors co-founder Scott Kuru, who has added 16 properties to his own investment portfolio in just 6 years, has locked in on yet another prime growth location, this time in Brisbane’s South, again where all the key parameters for capital growth and rental yield are met.
“We don’t leave anything to chance. Apart from our thorough analysis and prediction tools, we go right down to minute details such as population genre, predominant cultural background and residential demand. We even look at catering to their preferred lifestyle needs which can increase rental yields. For us it is all part of selecting areas where we can be sure to see the upward shift imminent,” says Scott.
“Property investing should never be a gamble or hopeful step, but rather a data-backed well-informed strategic purchasing decision,” Kuru adds. While for many young families the ‘Great Australian Dream’ might be pushed out of reach by climbing median house prices, the pathway to getting into property on the rentvesting route can be the smarter way to build wealth through property. For Nick and Tracey Barnett, who are renting where they want to live and focus on investing in areas they can afford, it has already proven to be a winning entry point to property ownership and winning formula to wealth creation.
“We could never have done this without the right education, support and advise,” says Tracey.
“I cannot express how happy we are that we followed the recommendation given by Lianna and Scott. And, now, we are already looking at how we can buy into the next location they have identified,” she says.
The uniqueness of Freedom Property Investors is that Lianna and Scott never recommend any investment locations or projects they are not also actively investing in themselves. And, despite the high-level of education, thorough market research and due diligence offered, that joining the property investor community is free.
With over 350 members nationally, over $200 million in transactions over the past four years alone and repeatedly predicting the high performing investment locations ahead of time, it seems that Lianna Pan either has that elusive crystal ball or really does not need it.
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