It's time to get sourcy!

Microlearning: learning in tiny chunks and short bursts of time.

YASSS! This year, my blogs will focus on tiny chunks of information that you can easily consume in a short space of time, all strategically stacked to build your property investing skills, week on week. Cool hey? All you need to do is read my blog once a week and before you know it, you’ll understand the in’s and out’s, the do’s and don’ts, the hows and whys, the up’s and downs of property investing. You're welcome.

This week, we discuss the second of FIVE key skills required to be a property investor:

Sourcing

2. Understand how to SOURCE properties that match your primary strategy: but not just any old property, find the perfect opportunity that most other people will miss.

Here’s where you start to look at the world through the eyes of an investor. Grow these skills and before you know it, you won’t be able to drive through a suburb without looking for indicators as to how well the area is doing and whether it would be worth investing in.

But how!?

Monitor the demand for properties by watching key property market indicators such as:

• Demographics: (Demographics are statistical data that researchers use to study groups of humans. A demographic refers to distinct characteristics of a population. Some examples of demographics are age, sex, education, nationality, ethnicity, or religion, to name a few.)

Who is moving into the area? Couples with children or is it an older group of professional people? Perhaps students have made this area their favorite stomping ground. What is the average income of people in the area?

• Pricing:

Are property prices rising or falling in your chosen area? If rising, chances are you are too late the party. If they are falling, find out why. Is the area in a state of decline? Was it overpriced and is now just stabilising?

• Developments and improvements:

Are new coffee shops springing up? Are homes being renovated in the area? More restaurants, shopping malls? All these subtle signs of life will tell you people are moving into the area and investing in it, believing it is the new place to be!

• Infrastructure: (the basic physical and organizational structures and facilities (e.g. buildings, roads, power supplies) needed for the operation of a society or enterprise.

What kind of public transport, if any, is available? Accessibility drives demand so the easier it is to get around, the better. Any new recreational projects such as new parks or playgrounds? Are the roads maintained? (silly question since we do live in SA, but I live in hope 😊)

• Check out the neighbours:

No really. Let’s imagine you just missed out on buying into an up and coming suburb. Once you are over the shock, take a look at the neighboring suburbs because demand is likely to spill over into suburbs nearby. Detective skills are key to this part of the journey. Embrace your inner Sherlock Holmes and learn to read the markets like a pro. Tune in next week to learn the third of the five skills required. It's going to be all about the Money, Honey! Cha ching...