Research & Predictive Analytics to Shortlist

Research shows that 65% of first time property buyers purchase their homes driven by emotion, rather than logical analysis. That metric improves only slightly for second time buyers, leading to sub-optimal returns on hard earned money. This is our effort to counter that, and help property investors make sound, calculated decisions. We have used a combination of research, local experts and predictive analysis to shortlist investment options that score high on “Capital Appreciation”, “Rental Returns”, and “Lowered Risk”. A strong hypothesis of our model is that the current rental yield (measured using similar units in the absence of actual rental yield), is a strong indicator of whether an investment option is over valued or under valued. It is similar to the P/E ratio of a publicly traded stock. The reason for this is that unlike the rental yield, the value of a property is often notional, and transactions do not occur in less favorable dynamics.  A simple snapshot of our model can is below. The purpose of the simple model is to provide an overview of the decision process. The final variables used in our predictive analytics model have been excluded from the diagram, for the sake of simplicity. These features and their optimal weightage in the final model have been chosen based on an analysis of extensive data of the past several years, that have had the highest correlation with capital returns.

Exhibit 1

 

 

 

 

 

 

 

 

 

 

 

 

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