3. Research

Research is the final key influencing factor in connecting a client’s portfolio strategy with their property brief.

At InvestorKit, we are known and respected for the depth and quality of our research. Our clients come to us not only for execution, but also to be the voice of clarity. They want to know that the “why” behind the where has been deeply considered — and that it aligns with their broader goals. And with property investors more informed than ever before — often following market movements, podcasts, or content from other platforms — it’s not enough to quote statistics. We must be able to explain them, translate them, and most importantly, connect them to the client’s strategy.

But research doesn’t come first. Strategy must always inform location.

We don’t build a portfolio to suit a specific market — we choose markets that serve the client’s brief. This means that the strategy and brief parameters must come first, and research is used to filter and identify the best locations that deliver the right yield, growth potential, and affordability for the brief. This is a fundamental mindset shift that separates us as strategic advisors from transactional buyers agents.

As Portfolio Strategists, we are the face of research for the client. They won’t be speaking with our research team directly — so when a client asks, “What do you think about Perth?”, or “Why is Ipswich no longer on the table?”, it’s our job to confidently answer those questions.

This module will help you master how we approach research at InvestorKit: from understanding our frameworks and market categorisation model, to learning how to explain research to clients in a way that builds trust, clarity, and conviction.

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 five categories.

But how does that help us stay ahead? Well, let’s break it down further to explain. Click into each step to learn more

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.

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.

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.

Resource link:

At InvestorKit, Market Categorisation is one of our most powerful frameworks — a system that classifies locations based on their position in the property cycle and the type of opportunity they present. This isn’t about opinion — it’s about clarity and data-led timing.

But categorising a market is only half the battle. The more important question is:

That’s where portfolio alignment comes in.

Different markets serve different purposes. Some are built for early-stage growth acceleration, some are better for balance and diversification, and others are targeted plays on short-term capital uplift. As Portfolio Strategists, your role is to help clients understand how each type of market fits (or doesn’t fit) their journey.

Let’s explore each of the three categories we use — and how they connect to specific portfolio profiles and strategic decisions.

✅ Best For:

🚫 Not Ideal For:

💬 Strategist Talking Point:

✅ Best For:

🚫 Not Ideal For:

💬 Strategist Talking Point:

✅ Best For:

🚫 Not Ideal For:

💬 Strategist Talking Point:

Clients may focus only a market they’ve seen hyped online or by other buyers’ agents. Your job is to bring structure and timing to that enthusiasm. Just because a market is popular doesn’t mean it’s right for this portfolio right now, or the only market they should focus on. Use the categorisation model to ground your recommendations in timing and suitability.

When you understand the cycle, and how it connects to the client’s goals, you can present options with confidence and rationale — even when the client doesn’t fully understand the research themselves.

As you can see, there is no perfect market. Each client will have differing expectations and we need to be able to communicate the pros and cons to align with their portfolio strategy but equally, their expectations on the asset as well.

A core concept that helps support market upside is mean reversion. It refers to the tendency of property prices to return to their long-term average rate of return after periods of over- or underperformance.

In residential property, when we study SA3 regions nationally, we find that:

This means that:

📊 Strategist Tip: You can highlight this to clients in presentations and strategy sessions to explain that short-term lagging markets can offer the best long-term upside — especially when the fundamentals are strong.

Clients often worry when a market has had low 5- or 10-year growth. They assume that:

But here’s how we can reframe it:

“Past underperformance = future opportunity”

“Let’s separate price growth from fundamentals.”

When those are strong — even in a slow past-growth market — we can justify a strong forward outlook.

Here are a few scripts you can use when clients lack confidence in a market:

As Portfolio Strategists, one of our core responsibilities is to align location recommendations with a client’s unique risk profile — not just their budget and borrowing power.

While InvestorKit locations are selected based on strong data fundamentals and research methodology, clients come with different lived experiences, investment biases, and risk tolerances. Your job is to identify, calibrate, and communicate accordingly.

This doesn’t mean that you simply “agree with the client” — it’s to confidently guide them toward high-performance outcomes while also respecting their boundaries and comfort zones.

These clients prioritise minimising holding costs — either due to limited monthly savings, previous cashflow stress, or simply a conservative mindset.

What They Say:

How to Respond:

Some clients hesitate to invest in locations with less diversified local economies, e.g., mining, agriculture, defence towns, etc.

What They Say:

How to Respond:

Despite many strong regional performers in our portfolios and demonstrated through our research, some clients come in with capital city bias. Bigger doesn’t always mean better!

What They Say:

How to Respond:

Some clients only want to invest in areas they know — often their home state, where they grew up, or where friends/family live.

What They Say:

How to Respond:

Some clients have strong opinions based on a single negative experience — often either their own or someone they know.

What They Say:

How to Respond:

A common belief among property investors — and many of our clients — is that “you can’t have both yield and growth.” That is, if a property offers a high rental return, it must be in a low-growth location, and vice versa. But as strategists, we know this is a simplification of a much more dynamic and time-sensitive relationship.

The truth?

Let’s start with what’s not true.

There is no data-backed rule that says high-yield markets must perform poorly in capital growth terms over the long run. In fact, many of Australia’s best-performing growth markets started as higher yielding locations — especially in their early adoption phases before major booms.

Examples from recent years:

Many early adopter or regional markets offer both:

So if yield doesn’t equate to low growth, why does this belief persist?

While yield and growth can co-exist, there can be occurrences where markets have one aspect that is stronger at a given point in time. This creates the perception of a tradeoff, especially during hot market conditions.

Here’s how the dynamic typically plays out:

So it’s not that high yield = low growth — it’s that high-growth markets may temporarily offer lower yield because capital growth has outpaced rental growth. This is a short-term imbalance, not a permanent condition.

It’s important to note that when we use these terms such as higher or stronger, these are terms that can be relative to the specific market, not comparing to all markets. E.g. a 4% rental yield is considered high in Melbourne

💬 Client Education Talking Points

Clients often bring up this myth when discussing market options. Here’s how to reframe their thinking:

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.

Resource link:

One of our biggest strategic advantages at InvestorKit is the depth and quality of our research. The Macro Research Report is a key tool that helps bridge the gap between client strategy and market selection, offering the data, context, and narrative needed to justify why we’re recommending specific locations.

But it’s not just about reading out charts — your job is to tell a story using the data that aligns with the client’s strategy, while demonstrating the depth of our research.

Here’s how to use the report effectively in client conversations.

Each Macro Report includes a Performance Scorecard which synthesises the following:

Use it to:

The infrastructure section gives insights into:

Use it to:

Talking point:

“Here’s why we believe in this market long term — over $2B in infrastructure is already committed, including upgrades to the major highway and a new hospital, which will create jobs and support population growth.”

Price pressure is assessed using:

Use it to:

Talking point:

“This market has seen a 25% drop in inventory and sales are moving much faster as you can see by DoM decreasing — this indicates buyer competition is increasing, which usually leads to upward price pressure in the short term.”

We assess rental pressure through:

Use it to:

Talking point:

“With a vacancy rate below 1% and median rents rising 10% over the past year, this area shows excellent rental demand — which supports your portfolio cashflow and is usually a precursor for price growth”

Building approvals data tells us how much new supply is likely to enter the market.

Use it to:

Talking point:

“We’re seeing a very low building approvals over the last 18 months — this suggests new housing supply is drying up, which is a key factor in supporting future price and rent increases.”

The power of the Macro Report is in linking each section to the client’s brief:

Key principle:

Don’t just present data. Use the Macro Report to tell the story of a market — and why it makes strategic sense for that specific client.

Research is the final piece in the portfolio strategy puzzle — but it’s the lens that brings the entire plan into focus. When strategy, lending, and cashflow are clear, research ensures we land the right asset, in the right market, at the right time.

As Portfolio Strategists, you are not just interpreters of research — you are the bridge between the client’s financial goals and the market realities that can bring those goals to life. That’s why your ability to align research with briefs, tailor recommendations to risk profiles, and simplify complex data into strategic clarity is what sets us apart.

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.

Remember, you need to be a guide, not just an informant. Clients don’t need every research stat — they need the ones that connect their brief to the market opportunity. They want to feel confident that we’ve considered the risks, filtered the options, and made clear recommendations based on evidence.

Research is where conviction meets communication.

Use it to lead, to simplify, and to give clients the confidence to act.