Written by TUDI
15 October, 2019
1. Buyer Demand
Supply and demand is the most fundamental concept of economics, and the property market is no exception. The higher the demand compared to supply, the more likely property prices are to rise.
TUDI’s Buyer Demand indicator will only shortlist suburbs where demand is about to or is exceeding supply, and will also assess how quickly demand has been increasing compared to supply.
2. Rental Occupancy
Similar to Buyer Demand, Rental Occupancy measures the rental demand against the supply available. The bigger the ratio, the more likely rents will rise. This in turn provides high rental yield, which attracts investors and pushes up property prices.
TUDI’s Rental Occupancy indicator will only shortlist suburbs with healthy or strong rental markets (i.e. rental occupancy ≥ 93%), and will also assess how quickly the rental demand has been increasing compared to supply.
3. Positive Gearing
TUDI’s Positive Gearing indicator is based on suburbs’ gross rental yield. The higher the gross rental yield, the more likely a property investment will be cash-flow positive, or ‘positively geared’.
The higher the Positive Gearing score, the higher the rental yield.
4. Past Price Performance
Timing is essential to reap the biggest rewards. A mistake commonly made in property investment is to invest in suburbs that have already risen in price, which usually means investors end up stuck with an asset that returns little growth – if any at all.
TUDI’s Past Price Performance indicator is in place to avoid that by ensuring you are not investing in a suburb that has already achieved significant price growth.
5. Seller Confidence
Seller Confidence assesses how much sellers are asking for their property compared to market value. The more they are asking compared to market value, the more confident they are about the local property market. And vice versa, the less they are asking for their property compared to market value, the less confident they are about the local property market.
The stronger the Seller Confidence, the more likely property prices will go up. TUDI’s Seller Confidence indicator only returns suburbs where sellers are asking for at least the same price as the market-estimated value of their properties.
Who is TUDI?
TUDI is a cutting-edge AI real estate prediction platform, powered by big data and years of property analysis, previously only available to professional investors.
Artificial Intelligence is changing the world – want to learn how to profit from it? Come and hear TUDI talk about their platform and property analysis at the Property Buyer & Investor Expo in Sydney.
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