How Reliable are Residex Property Predictions?

Residential property price predictions are worthless without proven results.

At Residex, we believe in measuring the accuracy of our predictions to ensure our customers get value for money from our property reports. Following are the results of our top 100 predicted total return areas in Australia as forecast in the March 2007 Best Rent Report. This is compared with the average performance of Australian housing and unit markets.

The Best Rent Report predicts the top 100 residential property locations and investment classes (houses or units) based on total return over five years. This represents less than one per cent of the suburb/housing configurations in Australia.

Investment Returns on Australian Houses.

All Australia Houses total return	Best Rent Houses total return	Residex predictions outperformed the market by
8.7%pa	11.14%pa	28.05%

Investment Returns on Australian Units.

All Australia Units total return	Best Rent Units total return	Residex predictions outperformed the market by
9.5%	11.95%	25.79%

An investor purchasing an average performing house at market value from the March 2007 Best Rent Report for $500,000 would have made over $89,000 more after five years (before taxes etc) than an investor purchasing an equivalent house from the average performing suburb in Australia. For a unit of the same value, Best Rent investors would be over $92,000 better off than the average investor.

In 2007, the March Best Rent Report sold for $275 – so an investment return of $70,000 plus over five years shows just what a fantastic buy that was. In contrast to the increase in property prices, the price of the Best Rent Report has only increased seven per cent over that time – making it even more outstanding value today. The June 2012 Best Rent Report range is now available.

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