How we find unicorn investment opportunities?

Step 1. Identity the Growth Area, Region or Market

These are the big picture macro drivers for a market

• Population Base: that is sound and showing signs of growth. Do people want to live here?
• Infrastructure Spend: both with private and public sector money. Is the area being supported by government and backed by investors to expand?
• Employment or Jobs: is there money in the area and will more money be coming into it to drive prices higher?

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Step 2. Identify the unicorn Suburb or Local Area

This is how to zoom in on the best performing sub-markets within the macro market.

• Vacancy Rate Analysis – is the area over supplied?
• Yield Variation – can we create cash flow positive properties?
• Median Price – can we get in below this level and get a lift from this?
• Demographics – who is living here and what housing do they want?
• Household Incomes – can local incomes support the prices?
• Days on Market – how desirable is the market right now?
• Rental Appraisals – what is our expected cash flow?
• Market Appraisals – what is our expected end valuation?
• Comparable Sales – what’s happening right now?
• Mortgage Valuations – what will the banks lend against?
• Infrastructure – is the area desirable? Are there...
- Schools
- Transport options
- Medical facilities
- Shopping options
- Outdoor lifestyle opportunities
• Best Suited Type of Real Estate – Does the market want low, medium or high density?

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Step 3. Review all Property Options in Area

This is how to identify the best kind of property to build for a certain market.

Analyse the available options from developers, agents, builders and vendors

• Compare offerings against each other to see who is most suitable to deal with or do business with? (i.e. publicly listed, full time developer, mum & dad etc.)
• Review what is physically on offer? (i.e. available for purchase now or in future)
• What is the vision of future development? (i.e. schools, shops, bus stops, parks etc.)
• Owner occupier levels vs investor participation to avoid rental ghettos
• Brand Name Developers, are the big money players here?
• Community Appeal, is this an attractive place to live?
• Quality of Development (ie street appeal, underground power lines)
• Ripple Effect, what is driving people into this area?
• Price, are there realistic expectations in the market?
• Check the flood zones
• Identify if dual occupancy would work in the area

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We at Heaps Good Homes are passionate about crunching numbers and identifying unicorn deals for our clients, staff and company founders.