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COMPLEX LOCATION DECISIONS NEED ACCURATE DATA.

Location expertise.

An aspiring investor should be commended for both their enthusiasm to invest time and funds in securing a better future, and for their willingness to learn how to be successful.

One of the primary factors in being successful is deciding on the location of a target property. With our guidance and recommendations a novice or experienced investor will not make the common mistakes of misjudging, not using the right criteria, and not assembling accurate data on each criteria.

Simply, without accurate data, an investor cannot make informed decisions.

Our team rates potential investment targets. Only when a target rates very highly across all criteria will it be recommended as an investment. This is an experience gained skill and, as part of our education activities, we will guide our investors through the process.

Location Criteria to be assessed.

The first location criteria is the potential Capital Growth of an investment property. To identify Capital Growth potential there are several assumptions to be considered including:

  • Baseline Value Analysis is a crucial step in assessing the economic worth of a real estate investment. It involves determining the fundamental value of a property, which serves as a reference point for further evaluation.
  • Market fundamentals are the primary characteristic and financial data that determine the value of an asset or a business.
  • Supply and Demand. Whilst generally self-explanatory, Supply refers to the availability of properties for sale or rent in a specific market whilst Demand represents the number of potential buyers or renters actively seeking properties.
  • Future Population Trends play a significant role in shaping the investment landscape, especially when it comes to property. It can significantly affect all of the above assumptions.

The second location criteria is both established and increasing high rental yield figures.

Rental figures are precisely calculated from historical and current data from real estate organisations. Rental figure risk is calculated by location profile for access to employment, socio-economic profile and council/state local funding for location infrastructure improvements. Rental yield ensures that renters are contributing an average of 50% of the costs of the investment.

A third location criteria is the ability to tightly control monthly maintenance costs. This is more prevalent in new dwellings in a new land estate as they are surveyed for their quality during both build and fit out, before handover.

A fourth location criteria is increasing improvement of socio-economic surroundings. This increasing trend of liveable appeal adds directly to an increasing property value.

Including location, we formalise the six success criteria as a Gibson Score.

Score G: For geography.
Score I: For infrastructure.
Score B: For business.
Score S: For socio-economic.
Score O: For opportunity.
Score N: For numbers.

In support of their independent research, we assist our investors in identifying reliable sources of data from both government and private entities. Additionally, we provide guidance on evaluating the six success criteria to enable informed decision making regarding investment opportunities in specific target locations. By following this guidance, investors can minimise their exposure to risk.

The GIBSON Advisory Australia®™ Proven Process

1.

Discovery

  • Meet with your Advisor and complete a Fact Finder online.
  • Review your Fact finder with your Advisor on your current position.
  • Understand what you want to achieve for the future.
  • Discuss your comfort level, budget and investment goals.
  • Explore property investment analysis numbers and investment outcomes.
  • Decide and agree on the engagement of your Advisor.

Over a period of approximately 7 days

2.

Engagement

  • Complete your finance application and confirm borrowing capacity.
  • Discuss, understand and review your strategy and potential outcomes.
  • Decide on your preferred strategy and property investment plan.

Over a period of approximately 7 days

3.

Shortlist

  • Review a shortlist of investments based on your goals and suitability.
  • Analysis of investment income, yield, expenses and potential after tax investment returns.
  • Understand stress test scenarios and analysis.
  • Confirm alignment to goals, risk and investment comfort levels.
  • Select final location opportunities for acquisition team to secure a property off the market.

Over a period of approximately 5 days

4.

Selection

  • Start the buying process to implement, pay an expression of interest and engage your solicitor.
  • Work together with your team of professionals to implement your investment purchase.

Over a period of approximately 2 days

5.

Implementation

  • Be ready for your first tenant and handover with the Concierge team and the Property Manager.
  • Manage your property investment business.
  • Monitor the performance each financial year with an annual review with your Advisor.

Ongoing Period

Ready to start your discovery process?

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Buy Right by the Numbers

Start the GIBSON Advisory Australia®™ Proven Process. Book your FREE 30-minute consultation to answer questions and kickstart your property investment journey.

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