How do you find a property in an area that grows faster than others?

There are many factors that determine what property to buy !!

One is location location location 

Make sure that your area  has consistent buyer demand!

But what research has shown is that some properties in the same location increases more than others!!

So, How do you find a property in  an area that grows faster than others? 

Easy says Robbie Baskin! -  find a property where the LVPP is a 5 Quintile 

Hmmmm 🤔🤔🤔🤔🤔🤔🤔🤔🤔

What is the LVPP? 

And 

What is a 5 Quintile ?

LVPP

The LVPP identifies  how much of the purchase price is derived from land vs. the building. 

The formula is pretty simple - find the land value of a house or unit and divide it by the purchase price!!

Land Value / Purchase Price. 

Quintiles

A 5  quintile represents the top 20% of properties with the highest Land Value Contribution for that area, and 1 represents the bottom 20%.

Robbie Baskin of Frontya’s research shows that the LVPP formula is a strong indication of how your property will increase in an area compared to others! 

So here’s the trick 

Buy a house or an apartment  where it's Land Value Contribution is in the top 20% for its area then chances are you'll achieve an annual property growth rate of 1.5x to the market.