How to research the property market?

Researching the property market involves strategic planning and long-term information gathering. Here are key steps and insights based on what Brad Barrett discussed:

1. Long-term Research:

   • Engage in extensive research over time to understand market conditions and identify good deals. This involves frequent visits to open houses and scrutinizing many properties.
   • Accumulate market knowledge to gain an "information asymmetry" advantage, where you know more than the average buyer, enabling better decision-making and quick action when the right property appears 1.

2. Setting Clear Goals:

   • Clarify your long-term objectives for the property. This can influence your decision criteria, whether it’s for an investment or a long-term family home. Knowing your goals helps in recognizing the right opportunities when they arise 1.

3. Active Learning:

   • Use periods when you are not financially ready to buy to educate yourself about the market. This keeps you engaged with your goal and accelerates your readiness when the opportunity comes by limiting unnecessary spending and focusing on learning 1.

4. Utilize Investment Principles:

   • Apply specific rules like the 1% rule for rental properties: the potential rent should be at least 1% of the property’s purchase price. This is crucial for evaluating if an investment property will generate sufficient cash flow.
   • Consider market appreciation potential and the overall trend of the neighborhood to gauge long-term value growth. This helps in choosing properties that not only meet immediate investment criteria but also promise future gains 2.

By combining intensive research, clear goal-setting, continuous learning, and specific investment rules, one can strategically navigate and capitalize on the property market.