Whether you are just starting out in property investment, or are a seasoned expert, the language and terminology used can be confusing.
Here we break down some of the most regularly used terms to help you on your search.
This is calculated by compiling all the property sale prices in one suburb for the past 12 months and then taking the middle figure.
This is a useful tool to detect changes in the market and can help you gauge potential capital growth in a particular suburb.
Download a free pack of suburb reports here which gives you suburbs with the the highest growth rates and yields.
The percentage change in median price over the last three months. This is a good short-term indicator of what property prices in a particular suburb are currently doing.
The percentage change in the median price over the last 12 months and how the market has moved over the medium term.
Anything over 10% - 15% would generally represent a very strong performance in a particular suburb.
The percentage change in the median price over the last 10 years usually expressed as a per-annum figure.
This helps identify the short-term peaks and troughs in the market, giving a good measure of long term market performance.
Anything over 7.5% would indicate a very strong growth.
The total percentage change in the median price in the past three years. Anything over 20 - 25% indicates an exceptionally strong growth.
The total percentage in the median price for the past 5 years. 40% and above represents very strong growth.
The median weekly asking rent for listed properties over the last 12 months.
This is expressed as a dollar figure and it is the best way to compare rental income in different suburbs.
Estimated rental income, by multiplying the rental income by 52 weeks then dividing by the median price.
Note: Rental yield will rise when median price falls, increasing rental yields are not always good.
The average difference between the initial asking price and final selling price. A negative figure denotes a discount and a positive figure shows a premium (expect to pay more).
Learn some tips to help you secure your next property at a discount here.
The time period (years) of which home owners hold on to their properties before selling.
Over 10 years indicate a tightly held suburb, indicating a low stock market.
Below 5 years indicates a rapid turnover.
The total number of houses/units sold in the suburb over the last 12 months - this number can also be influenced by the number of dwellings in the suburb.
This information should be used in conjunction with other statistics to get a better picture of how active the suburb's market is.
The average amount of days a property stays on the market before it is sold.
A lower number indicates properties are highly sought after and quickly purcahsed by buyers.
Properties buyers will typically look for homes that have been on the market for less than 3 months, as over this period of time properties could be unsuitably priced or have undesirable offerings.