All posts by propertyinvestments

How To Identify The Ultra-Important Project Approach

Wait! Audacious and Suicidal…Kinda Weird You Forgot or Did You Miss Something?

In today’s blog post, I break down the 10 steps you need to take to get clarity.

Remember, if you want maximum results from any of your property development projects, you’ll need to know the desired end results that’s associated with Project Approach.

If you want to keep risks and complaints down and performance up, it’s always best that you focus on the Project Approach. Why?

Because this allows you to strengthen and test performance of different phases before it becomes part of any process and sequence. After all, what’s the point if it isn’t working?

The big difference is you’re focusing on speed and implementation of end result.

So the following sections describes types of information required in Project Approach.

Project approach involves outsourcers, contractors or vendors
Project approach involves outsourcers, contractors or vendors

Ok, so are you starting to see the power and how it functions as a complete project.

Enough pie-in-the-sky mumbo-jumbo…so let’s talk about how you actually DO IT, keep reading and you’ll be glad you did.

Basically, there are four distinct and logical stages of projects:

Project and Strategic Planning – provides a business with direction on achieving its mission and vision statements within set period of time by setting milestones and specific goals.

Strategic planning differs from a typical plan because planning takes the external environment into consideration.

Depending on the business’s needs…

The strategic planning for a project includes details about necessary organizational design changes for the project.

This includes performance goals, needed resources and required outcomes.

Outcome – Clearly defined project…

Project Feasibility – studies aim to objectively and rationally define the strengths and weaknesses of proposed project, opportunities and threats as presented by environment.

Also resources required to carry through, ultimately the prospects for success.

In its simplest, two criterias are used to judge feasibility, which are costs required and the values and benefits to be attained.

A well-designed feasibility study should provide a historical background of project:

  • Description of project
  • Accounting statements
  • Details of developer’s functional
  • Requirements of project
  • Management and policies
  • Marketing research
  • Financial data
  • Legal requirements…

Outcome – Project substantiation with a clearly developed strategy to deliver client and stakeholder objectives.

Project Procurement – once the project has been progressed beyond the feasibility stage then next important stage of project is procurement stage.

This process involves developing design of project and delivering project to tender stage and award of contract.

Outcome – Project ready for tender to meet client’s requirements and subsequent transaction of contract, which involves delivering project to final handover.

During this phase of the project you want assurance of key risks are being managed and desired benefits are realised.

Project Delivery – once the project has been progressed beyond procurement stage then next important stage is project delivery.

This involves developing design of project and delivering project to tender stage and award of contract.

Outcome – Project ready for tender that meets the client’s requirements and subsequent transaction of contract.

The benefit of Project Approach allows Project Manager, Design Manager and project team to lay out a high-level vision for project execution and use this vision to help create detailed plans.

project management
Project management in various stages for effective development methodology

In the Project Approach section, I’ll tie everything together for your project management benefit:

1. Discuss whether any broader company initiatives or strategies impact the structure of this project.

2. Identify any constraints or time-boxes in terms of budget, effort, time or quality, and the impact to project.

3. Describe other options for overall approach and why you chose options you did over others.

Note why you think this approach has the best chance of success over the others.

4. Talk about how the deliverables will be supported and maintained after the project ends.

Also indicate whether the approach was influenced by support and maintenance implications.

5. Discuss any other related projects that are completed, in progress or pending that influenced the approach for this project and why.

6. Discuss, at a high level, how project progresses from start to end and interdependencies between high-level phases and stages.

7. Discuss any techniques that might be of interest

8. Note whether new technology or new processes are being utilized and why.

9. Identify any unusual staffing requirements, if using consultants or outside specialists and explain why you need them.

10. Describe use of outsourcers, contractors or vendors, especially if they are doing significant work.

Remember, the Project Approach is the linchpin that holds the entire process together.

If you can get this right, you’ll make more money, experience less stress and build tremendous good will amongst stakeholders.

Not only will this process get you specific goals provided by Project Approach, but also gives you the momentum you desperately need to achieve your desired end result.

The big takeaway is by asking these types of questions FIRST hand because this just flat out works…

P.S. There was so much I wanted to cover on this topic that it wouldn’t all fit in one post, so I’m breaking it up into three posts.

Don’t worry… you won’t have to wait a week or more for Part 2 and Part 3.

I’m putting the finishing touches on Part 2 now, and I’ll email you tomorrow and let you know when it’s published.

Project Approach

The Right Ripple Effect on Property Prices?

“What is The Ripple Effect and How To Predict Property Prices…” 

Investing without fear, will the right ripple effect on property prices your purchase?  What if you ride ripple effects to maximise your property profits?

Yes, ripple effect applies at any stage of the property cycle.

Researchers call it the ‘ripple out’ effectproperty booms usually start in the inner city or prime areas and radiate outwards…

Prices rises in suburbs close to CBD, then spread out to middle-ring suburbs and later to outlying areas.

property prices
Most property investors rely on hope and a prayer…

The ripple effect is when demand for property outstrips supply.

We see property prices rising in a given area (often sharply)…

Generally buyers set a budget and they’re restricted.

This budget restriction results in some buyers being forced out of their original target suburb as prices rise.

Usually buyers want to stay close to their original target suburb so they move to the next suburb they can afford as a compromise.

Trend continues, pushes up prices in adjacent suburb…

This forces buyers that originally targeted adjacent suburb as their primary suburb to move on again.

It means targeting the subsequent adjacent suburb which is based on affordability.

Some factors and stats point to ripple effect as the most powerful driver of all in determining why suburbs increase in value…

This ripple trend continues out to the regional cities as more buyers investigate or weigh-up price discrepancies across towns and cities.

And begins to make lifestyle choices…

Most people underestimate the significance of the ripple effect.

So many aspire to live in a suburb of their choice and they can’t be accommodated.

They end up having to go elsewhere and this usually means moving further out.’

As a savvy property investor it may be possible to take advantage of this demand and trend within the ripple effect.

Just be aware  the ripple effect also works in both ways.

When buyers, for example give up on ‘higher priced suburbs and switch to buying quality in the inner city.

The best way to identify outperforming suburbs and the next best suburbs that haven’t yet surged is to analyse price data.

And target suburbs likely to benefit in near future as a result of the right ripple effect.

For example…

What if you identified a suburb that hasn’t yet shown any significant price movement?

And yet the adjacent suburb has already shown strong growth?

Would it be worth checking out further?

It could be a pointer to increasing capital growth, right?

Property buyers target suburbs which in the past year have shown under-performance in context to five-year growth averages.

If these suburbs are located beside others with higher growth rates in the past year, they almost always experience a catch-up effect.

Always check council’s website for what’s happening in the zones.

For example…

Check planning permits applications submitted and if freeway is not about to slice through an area before you invest.

You should also check whether shopping centres and schools are earmarked for closure.

That could affect the supply and demand plus demographics of the area, which would skew all the price data.

What fuels the ripple effect is any low or medium-income household has to move, either to outer suburbs or switch to a different type of accommodation…

Are ripple effect suburbs an excellent opportunity for property investors?

Property Prices

Finding Hidden Profits In Houses vs Apartments

Are You Wanting Ridiculous Results From Your Assets In Context To Houses Or Apartments Which Is A Better Investment?

The short answer, it all depends on growth and performance with strategy for location and/or specific area.

Perhaps you don’t really know a lot about buying a home or investing in property. Are you always a little fearful of being tied to a mortgage?

Please note you must always do extensive research to ensure each property is either or a combination of the following elements:

  • Cash flow positive
  • High profit margins
  • High cash on cash ROI
  • High rental yield

And for this reason, houses and apartments are great investments…

houses vs apartments investment
Houses or apartments are golden investment opportunities…

There are specific streets, locations within cities and suburbs where houses outperforms.

It’s the same answer for apartments, it’s whether this type of asset outstrips performance of houses?


Because performance of any property type means it’s growth is determined by factors, location, growth rates and strongest demand.

What causes one to perform better than the other?

Is it the infrastructure in place which supports demographic mix and population growth rates?

Growth causes demand for specific style of property, right?

The demographics in every suburb or city identifies  whether there’s stronger demand for houses…

Or stronger demand for Apartments.

Step 1,  identify hidden opportunity in context to demand and how different property assets are performing.

median growth rates
Trend lines and data for median growth rates…

Data from Real Estate Institute of Australia shows the difference in price growth in houses and apartments from 1997 to 2009.

Can you see how the graph trends over a 13 year period with growth rates between houses and apartments are almost the same.

The median apartment price increased from $153,200 to $373,300
or 143.93%.

And over the same period houses grew from $183,100 to $458,100,
or 150.24%.

As you can see similar growth for both property types, how do you know what type of property you would invest in?

Property and suburb, one of the most influential drivers for demand
is demographics of specific area.

Demand causes one property type to grow faster than another.

See chart below from Australian Bureau of Statistics…

australian household size
Do trend lines, data, median growth rates support Australian household size…

See the number of people per dwelling in 1911 shows 4.5 people.

By 2011 on average the figure is less than 2.5 people per household.

2014 even more people are choosing to live in smaller sized dwellings
with fewer people per household.

An interesting growth expectation for 2026 (forecast by Australian Bureau of Statistics)….

The data suggests demand for new property by couples without children and single person dwellers.

Population growth requires almost double the number of dwellings today to accommodate the same amount of people.

In 2001, 1.8 million people lived on their own. According to ABS, this figure is expected to increase by between 57% and 105% by 2026.

*RPData, many new apartment developments are also being built in strategic locations, where a large proportion of market aspires to live.

The kicker for savvy property investors, can you see if marketplace can afford to buy a detached home?

Can you see good examples of these factors in your area?

Can you identify where apartment prices in the suburb are more affordable than a house?

Over a 12 months trend line have apartment values increased by 10% or more compared to growth of houses?

Check out migration stats from rpdata…

If you analyze the data from month to month basis, does the annual value growth for apartments outperform that of houses?

The key here is consistently…

If you do research you’ll see individual capital city markets perform differently.

The growth cycles and trends for apartments has most likely in your area outperformed houses over the last 12 months.

What’s the differential between median house prices and apartment prices?

If analysed, you’ll see deeper insights into performance of the market.

capital city median apartment prices
Capital city median apartment prices

Capital city differential between median apartment and house prices

median apartment and house prices
Check out the median apartment and house prices…

Understanding data in context to population growth statistics, demographic shifts and property value trends.

It is crucial for the type of strategy and what type of property
to purchase, right?

Houses or apartments?

Do you need to know what’s the demographic demand for houses or apartments in any specific area, suburb or region?

You make a decision based on sound research.

Looking only at demographics is an important, you also want to understand affordability factor and returns on investment (ROI).

Which type of property is best?

As well as population growth and infrastructure investment planned?

Do all these trends work with variables to influence your investment property performance and houses vs apartments investments?

houses vs apartments investment
Are You Wanting Ridiculous Results From Your Assets In Context To Houses Or Apartments Which Is A Better Investment?

Houses vs Apartments