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Investing Relativity

https://youtu.be/Rn0A-384FLE
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Transcript

When looking to invest in property relativity is something that’s missed out all the time. So if you’re thinking of Relativity what that actually means is supply and demand in the simplest form. So with Supply, how many buildings are coming up, how many buildings are available, How many buildings are in the process of being built or launch for applications?
There’s so many different ways to look at supply but then demand sometimes it’s actually easier to focus just on the mind you think of
”Oh wait how close is it to the city? Where’s a new train line?
Where’s the new Shopping Center?” all this stuff is happening
and I think that’s really exciting and great school zone.

So people think of them in isolation, but relativity sometimes very easily missed. Now how many times have we told our friends “oh well,
this is a great place to live with that’s a great area” and whilst that may be true. We haven’t understood what is happening in that area in terms of
how much building activities coming up. Now in terms of Relativity if you don’t think about that how that hurts your Investment Journey, is you could be buying in that right area, but then all of a sudden have months of delayed or little to no or years even of no price growth. Why? because if there’s so much Supply where do people compete? They have so many more options. So supply and demand it’s so important to have that relativity there, but that’s not the only thing. If you start thinking of whether maybe rent is well, “it’s very expensive to rent here and we’re going to get great rents here”. However, what if there are many properties available for rent,
are you going to get that place listed? Is it going to give you that yield or that expensive rent?

Maybe not because you’re still sitting there waiting for a tenant to find and pay that for that property. So this is where relativity gets missed far too often and as an investor, you need to start considering it. Incomes could be a good angle as well to look at if a suburb has a pocket where incomes are very high. But what if the rest of the suburb is full of Housing Commission,
so you might think “well, okay sure that’s patches good” but is this suburb going to change as quickly as I’d like it to so there’s so many things when considering investing relativity, but the main thing here is don’t consider stats or statistics in isolation. If you’re investing in isolation, you might be
looking for that one piece of data to make you think it’s a good choice or a good investment. But when you start adding all the different pieces of “what’s the confidence, what’s the supply? What’s the demand?
What are some of the heat happening, the signals?”

If they don’t all come together to create a nice picture
or sort of forecast or potential ahead well then one figure of tight vacancy rates. There are many places that say for example are not growing
but they have type vacancy rates so you can see that it’s not always about one data point. When investing consider Relativity.

And that’s it for us here at InvestorKit, the in wealth creation, helping you take action.

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