Using data to make better decisions about property
It’s hard to argue that data-driven decision making can greatly improve your chances of success.
Of course, it’s not a perfect science. You’ll need to consider things like the data you have selected to look at, how you interpret it, how to analyse it, and the weight you place on certain data points.
But the benefits of making data-driven decisions are great. Harvard Business School says some of the benefits include “you’ll make more confident decisions, you’ll become more proactive, and you can realise cost savings”.
When it comes to property in Australia, a lot of people are sitting on the fence when it comes to property decisions whether it be on the buy side or the sell side.
We are asked almost every day if now is the right time (to buy or sell).
According to Westpac (Westpac Dwelling Price Forecasts), property in Sydney is expected to rise by 10% this year and 6% next year. Across Australia it’s expected to rise by 7% next year and 4% next year.
Some of the reasons for this include a rise in migration numbers, with 400,000 people last financial year and a further 315,000 this financial year who need housing, and housing supply that can’t keep up with the demand.
If you are a first home buyer and sitting on the fence, these pieces of data indicate that it’s only likely to get harder to get into the property market if you continue to sit on the fence.
If you are a property investor, you would know that rents are through the roof, with an annual change to August in Sydney of 11.8% and 9% across Australia.
Generating higher rents from your investment properties can improve your borrowing capacity.
Have you reviewed your current rental income to the market recently?
Further, the big four banks are expecting interest rates to come down next year, with CBA saying it will be early 2024, NAB and Westpac saying second half of 2024 and ANZ saying late 2024.
When was the last time you reviewed your borrowing capacity and equity positions?
Whether you are a first home buyer, looking to upgrade your home, or want to build or expand your property portfolio, using data like the data above will help you to make smarter decisions and improve your chances of success.
Have a fantastic week!
The team at Build & Protect Financial Services
