An Insight Into the Blue Wealth Research Process

Posted by Daniel Joseph

A man on a bench once said; ‘Life is like a box of chocolates, you never know what you’re gonna get.’ He clearly wasn’t familiar with Blue Wealth’s proven and audited research process and model or the countless clients who benefit from our philosophy of market timing.

Now, we don’t by any means profess to have a crystal ball; we do, however, possess the tools required to mitigate your investment risk to the greatest extent possible. As for the chocolates, had our friend Forrest flipped that box around he may well have found a description of what lay inside: Unfortunately, the research process for property markets isn’t as simple, and that description comes in the form of a multi faceted due diligence report.

I’m often asked what our research methodology involves, so thought it best to address the recurring question with a blog post. Without boring you with all of the detail, what you see below is a snapshot of the research process:

1. Trend analysis: look for statistical patterns in price movements to isolate cities and regions in the correction or opportunity phase of the price growth cycle.

2. Economic analysis: do markets in the correction or opportunity phase possess the factors required to stimulate their movement into the growth and boom phase of the cycle?

3. Micro analysis: isolating ‘point of difference’ property in approved markets.

4. Blue Wealth index: growth and cash flow ratings that provide investors a simple way of ensuring they acquire the property most suited to their portfolio.

Steps one and two have led to approval of the Brisbane and Melbourne markets. Steps three and four have led to a rejection rate of property in excess of 80 per cent, meaning four out of five properties aren’t worth your investment!

By following this process we can ensure that property investment risks are reduced to the barest minimum.

So, what ever happened to that man on the bench? The bus to wealth creation took him to the Blue Wealth office and now he knows what he’s going to get!

Posted by Daniel Joseph, on 21st Jul 2015