Buying property the InvestorKit way
Ahh the research process. This section will help you understand and talk to the step-by-step research process InvestorKit uses to identify and validate property markets with strong growth potential and long-term resilience. When we think about the hundreds of thousands of potential properties that are available to purchase, there needs to be a systemised way we filter and find the top percent of properties for our clients. You will gain insights into the key metrics, tools, and strategies that form the foundation of our data-driven approach going from the macro of area research, drilling down to the micro of due diligence and property selection.
Table of Contents
Our Research Process
At InvestorKit, research isn’t just something we do—it’s how we win. We invest over $500,000 a year into it, with a team of full-time analysts using advanced tools like AI and machine learning to stay ahead of market trends.
Here is a video of Junge walking us through how we weave our research magic to pick the right markets that outperform the national average year on year:
Resource link:
So in short, the research division is constantly reviewing and analysing the current markets we have approved, as well as looking for signs of up and coming markets that we should consider. Their process and approach can be broken down simply into the following for four categories.
- Market Categorisation - Analysing markets and where they are in their cycle
- Forecasting - Using AI, data and statistical analysis on the variables that create price growth
- Pressure analysis based on static data - Macro Research Reports
- Trend analysis - Manual interpretation of the data trends
- Data due diligence - Reviewing trends at a suburb level so only the best suburbs are selected
But how does that help us stay ahead? Well, let’s break it down further to explain. Click into each step to learn more
1. Spotting Emerging Markets
We’re always watching markets, tracking data and using forecasting tools to uncover markets with growth potential before anyone else.
2. Analysing the Numbers That Matter
We focus on key metrics that show a market’s strength, like:
- Price Pressure: Are prices stabilising in a cooler market or are they rapidly increasing?
- Demand: Are properties selling faster? Are there more interested parties looking to purchase?
- Established and future supply: Is supply currently tight and will it remain?
- Rental Yields: Does cash flow make sense for investors?
3. Looking at the Bigger Picture
Short-term trends don’t cut it alone, we need to understand what is happening economically within a market for long-term sustainable growth.
We evaluate:
- Infrastructure projects
- Job growth
- Migration patterns
- Economic reports
4. Continuous Validation
Markets are monitored for months, not weeks. If the data holds up, we move forward. If it doesn’t, we hold back and reassess.
5. Local Expertise and Hidden Gems
Once a market checks out, we dive deeper—examining industry diversity, demographics, and employment growth. Research collaborates with the acquisitions team to get an understanding of the suburbs locals like, the things to watch out for, how local agents + campaigns operate, set up area due diligence and even field trips. Taking our insights beyond the spreadsheets. We often find off-market opportunities through local relationships that others miss.
6. Confidence in Every Recommendation
By the time we present a property, it’s been through months of scrutiny. Every decision is backed by data, ensuring your investment is in the right market at the right time.
This process isn’t about guessing—it’s about making decisions grounded in research and results. That’s how we stay ahead and help you do the same.
Research Material
As you can imagine, the research team have a lot of spreadsheets and complicated models that help them determine the best possible investment markets at any point in time. This can be quite overwhelming, which is why they have simplified it to two main documents that we provide for clients.
Market Categorisation
The first is the market categorisation and buying areas document. This firstly explains the different types of markets that we purchase in, as well as overlays our current buying areas with where they are in their cycle.
Here is a video of Junge explaining the categories of markets we invest in for clients
Resource link:
Document -InvestorKit Market Categorisation & Buying Regions | InvestorKit
Region Reports
The second is a region report. We have these for all states where we are purchasing in, split into a capital city report and a regional report which can contain multiple regional areas. These go into the details for an area, with all the data and research on why we believe it’s a great area to invest.
And here is a video of Junge breaking down a Toowoomba research report from 2024, this will give you a clear understanding of how to read and interpret one of our reports.
Resource link:
Document -
Summary
InvestorKit’s research process combines advanced technology, extensive data analysis, and economic insight to identify and validate investment opportunities. By focusing on both short-term indicators and long-term fundamentals, we ensure that each recommendation aligns with our clients’ goals for sustainable property investment.
Our research is constantly developing so it’s important to stay across our content so you’re up to date. Clients are more informed than ever, and we are the face of research for them when they have questions. For them to have confidence in our advice, we need to ensure we know our investment philosophies back to front.
To gain further knowledge on research, please visit the below link which stores all the research:
Additionally: Section 13: How do I become the best strategist I can be? Section 14: Resources. We also have our IKIT: Research Team WhatsApp chat if you have any further questions!
Right market, but how do you pick the right house?
One of, if not the greatest strength of InvestorKit lies in our proprietary 21 point due diligence process. Arjun himself created this process during his CommonWealth Bank days. It’s based on the criteria that banks use to value and pass a property for finance, and has evolved to capture the key features that tenants and the market find desirable.
Due diligence is the process of thoroughly investigating and evaluating a property before making a financial transaction or commitment, to ensure all relevant facts and potential risks are known and considered.
Due Diligence for all properties is completed through our Due Diligence Bot https://bot.investorkit.app/#/. The bot asks you to enter information about the property, street, surrounding areas and provide evidence with screenshots for each relevant part of our 21 point DD checklist.
You will learn how to use the DD bot in module 6 link
How does a house fail our due diligence process?
Passing as InvestorKit-level stock isn’t easy—around 95% of properties don’t make it through our strict due diligence process due to one or more hard passes. You’ll come across these often during your time here, but don’t let it discourage you. It’s this rigorous process that delivers amazing results for our clients—and helps you earn those glowing 5-star Google reviews!
In this video, AJ explains our Due Diligence process and details the hard rules to follow in passing or failing a property
And here are the hard pass rules in detail and in order to check, click to learn more about them:
Land
- All land sizes to be above 375 sqm
- Properties directly backing parks pass checks
- No triangular blocks under 600sqm
🛠️ Tool Required - REA Website or CoreLogic (this will be a link to module 4)
Bedrooms
- Must be minimum 3 bedrooms or more
- No 2 bed + study
- No 2 bed + sleep out
🛠️ Tool Required - REA Website or CoreLogic (this will be a link to module 4)
Highway / Motorway distance
- Must be 200m away in distance from highway/motorway.
- If garage is NOT facing main road etc it doesn’t fail DD.
🛠️ Tool Required - Google Maps (this will be a link to module 4)
Road / Street checks
- Bus stops to be minimum 5 houses away from property
- Long streets are only acceptable if the street has points where vehicles need to slow down / give way before proceeding
- Street should not have multiple speed bumps or roundabouts
- All round about not on busy roads, should be 5 houses away
- Same street as the property should not also have entry to a any car park parking lot
- Speed sign: to be under 60 km
- 2-way streets preferred.
- 3-lane or 4-lane roads too busy / fail checks
- Property cannot be on the same street as a school
🛠️ Tool Required - Google Maps (this will be a link to module 4)
Backyard of property
- Cannot be backing: cemetery / schools / parking lots / creeks / daycare
- Cemetery must be not be visible from street view, and at least 250 m in distance
- No in-ground swimming pools
- Above ground pool or spa is fine, but agreement must be made in writing for the sellers to remove the product prior to settlement, must be part of the contract, only proceed if negotiations include removal as part of contract. If inground and not being removed, decline.
🛠️ Tool Required - REA Website, Google Maps, Video Walkthrough (this will be a link to module 4)
Train tracks / Train station
- Property must be minimum 200m away from train tracks
🛠️ Tool Required - Google Maps (this will be a link to module 4)
Electrical hazards
- Major power lines must not be visible from street view or visible from the backyard
- Major power lines must be minimum 200m away
- Electrical substations must be 300m away from the property
🛠️ Tool Required - Google Maps (this will be a link to module 4)
External Property factors
- Garage conversions are fine as long as it's not a bedroom. Easily converted back to a garage if needed. (Sliding doors and flooring change, fine with that).
- Extension & rumpus: If SA. title insurance to be considered. In any other state: sale agent must provide approvals
- No back of a battle axe properties
🛠️ Tool Required - Google Maps, REA website, Floorplan (this will be a link to module 4)
Bedroom sizing
- Example: 3 Bed property (2.8 x 3) (3x3) (3x3.5) PASS
- Example: 3 Bed property (2.6 x 2.9) (3x3) (3x3.5) FAIL
🛠️ Tool Required - REA Website or Floorplan (this will be a link to module 4)
Bushfire Risk
- Observe from Google Maps to see if there is a clear risk with surrounding parks, trees or reserves.
- If the property backs onto any of the above it would be a high risk and a fail.
- Check the overlay on council websites for the different Bushfire Risk ratings (Low, medium and high)
- If Medium or low risk affected it is ok to proceed as long as you have 2 insurance quotes within the normal premium range and bushfire is covered in the policy.
- If the property falls within a high bushfire risk but you can see it looks like a newer property and isnt backing on a reserve, park or trees you can disclose this to the client in your Due Diligence report, note the current Bushfire risk and why you are happy to proceed with relevant insurance quotes.
Flood
- Flood rules still apply for all regions, however for Townsville in particular - any Dark blue is okay. Let’s still stay away from light blue / light green & reds when it comes to flood mapping.
- No overland flow to be touching the property (back, front, directly front of street)
- House, backyard or directly In front of property must not be Impacted by flood
What is heavy flood risk?
Heavy flood risk is larger amounts of water gathered within a certain distance of subject property i.e a river, ocean or large lake within 200m.
- Heavy flood risk to be minimum 200m away from the subject property
- Heavy flood risk rules apply for Larger Lakes, Rivers, Oceans
IMPORTANT: Heavy flood risk rules do NOT apply for all properties, for example the property can be within 200m of creeks and smaller lakes, however insurance checks do apply and must be within the approved price range.
🛠️ Tool Required - Council Website (this will be a link to module 4)
Government housing
- Suburb to be under 20% housing hard rule (via microburbs),
- Suburb must not be surrounding by areas in microburbs that are high housing (eg 30%-40% ranges).
- Property can’t be located on the same street as a housing commission complex.
🛠️ Tool Required - Microburbs (this will be a link to module 4)
Another one down, what a legend! Now you understand meaningful it is when you get a win for your clients, you are literally buying the top 2 - 5% of quality properties in the best markets! Next up we will take you through the keys to being the most successful PAA you can be.
Learning Competency Checklist for this module below:
1. Understanding the Overall Research Process
- Competency: Demonstrate a clear understanding of how InvestorKit conducts research—including its investment, team structure, and use of advanced tools.
- Pass Criteria:
- Explains the overall purpose and structure of the research process.
- Recognizes the role of technology and dedicated analysts in staying ahead of market trends.
- Fail Criteria:
- Is unable to describe the overall research process.
- Shows confusion regarding the investment in research, team roles, or the use of advanced tools.
2. Knowledge of the Key Steps in the Research Process
- Competency: Understand and articulate the main steps involved in the research process.
- Pass Criteria:
- Identifies the distinct steps such as spotting emerging markets, analysing key numbers, looking at the bigger picture, continuous validation, and leveraging local expertise.
- Explains the purpose of each step in the research process.
- Fail Criteria:
- Fails to identify or differentiate between the key steps.
- Cannot explain the role or significance of the individual steps.
3. Familiarity with Research Materials and Resources
- Competency: Demonstrate an understanding of the key research documents and tools provided (such as Market Categorisation and Region Reports).
- Pass Criteria:
- Identifies the primary research materials and their purposes.
- Explains how these resources support the research process.
- Fail Criteria:
- Is unable to identify the essential research materials.
- Lacks clarity on the significance or usage of these resources.
4. Understanding the Due Diligence Process and Criteria
- Competency: Understand the due diligence process used for property selection, including the 21-point checklist and hard pass rules.
- Pass Criteria:
- Describes the overall due diligence process and its importance.
- Recognizes the key criteria and rules that determine whether a property passes or fails.
- Fail Criteria:
- Cannot explain the purpose or steps of the due diligence process.
- Fails to identify or understand the significance of the hard pass criteria.
5. Integration of Research and Data Analysis into Investment Recommendations
- Competency: Demonstrate how research findings and data analysis inform property investment recommendations.
- Pass Criteria:
- Explains the connection between the research process and making informed investment decisions.
- Shows understanding of how data analysis supports market and property selection.
- Fail Criteria:
- Is unable to link research data with the decision-making process.
- Fails to explain how research impacts property recommendations.
6. Commitment to Ongoing Research and Continuous Learning
- Competency: Recognize the importance of keeping research up to date and engaging in continuous learning.
- Pass Criteria:
- Demonstrates an understanding of the need to regularly review and update research materials.
- Shows awareness of available research resources and continuous learning opportunities.
- Fail Criteria:
- Lacks awareness of the ongoing nature of research updates.
- Fails to acknowledge the importance of continuous learning in the research process.