DSR score for property investment | YIP (2024)

What is The Demand to Supply RatioDSR score for property investment | YIP (1)?

The DSR provides a handy way to quickly identify the country's hottest suburbs without spending countless hours searching, sorting and analysing vast amounts of property information.

The DSR measures the gap in supply and demand for units and houses in an area. The higher the score the better the chances of imminent capital growth. The DSR compares 15,000 suburbs against 8 leading supply-demand indicators: Each suburb is given a summary score between 0 and 100 with 50 representing a market in theoretical balance i.e. where supply meets demand.

Investors are encouraged to search for suburbs with a score of 70+ for an optimum mix of growing demand and some restriction in supply. The DSR can provide a snapshot of a suburb’s statistical credentials or help investors cherry-pick a shortlist of potential suburb hotspots based on their personal requirements.

DSR between 91 and 100 is EXTRAORDINARY

Buyers are absolutely desperate in this market.
They frequently make offers above the asking price. Buyers line up at open inspections and auctions are a full house. This is not a market for the faint-hearted; buyers must be very aggressive and very fast. Sellers can't believe how much they're getting and real estate agents can't get enough stock to sell.

DSR between 82 and 90 is EXCELLENT

Some buyers are desperate and sellers are licking their lips.
Properties in this suburb are highly desired by buyers but there are very few available. They have to act fast and make strong offers to get their foot in the door. The few sellers are receiving many strong offers. The imbalance of demand and supply will drive prices in the suburb higher at a fast rate.

DSR between 73 and 81 is VERY GOOD

This is a sellers market. Buyers will need to move quickly.
There is strong demand from buyers yet not enough properties to give them time to be choosey. Sellers do not have long to wait before they receive a healthy offer. Prices are being driven upward. Expect good capital growth in the immediate future.

DSR between 64 and 72 is GOOD

Sellers are in no panic and buyers are making decent offers.
This is a healthy market for investors. Demand is ahead of supply but not alarmingly. Buyers are rarely able to get away with low-ball offers. Sellers are usually getting the prices they ask for. Expect growth to exceed the national average.

DSR between 55 and 63 is ABOVE AVERAGE

Demand just outweighs supply in this market.
This is a healthy market for investors wanting to apply some value adding strategy. Buyers are sometimes able to get away with low-ball offers. Sellers are getting the prices they ask for more often than not. Expect growth to marginally exceed the national average.

DSR between 46 and 54 is BALANCED

This market is balance with respect to supply and demand.
There is a healthy count of properties for sale compared to the number of interested buyers. There is a closely fought tug-o-war between buyers and sellers. Sellers may get away with a good price if they find a poorly researched buyer. Buyers may get a good price if they find a seller who wants a quick sale. Prices should grow in line with the national average.

DSR between 37 and 45 is BELOW AVERAGE

Supply just outweighs demand in this market.
Sellers need to be realistic. It is a little better to be a buyer than a seller in this market. Buyers can afford to ignore sellers who are not negotiable. Sellers will have to wait to get the price they want. There is little driving capital growth so expect prices to remain flat or increase a little slower than the national average.

DSR between 28 and 36 is POOR

Buyers are few and hesitant while sellers are keen to offer them incentives.
There is some interest from buyers but there are few of them and they can afford to be choosey. Sellers are happy if they get an ordinary offer and are often prepared to accept inconvenient terms just to get a sale. Prices will probably remain flat if they do not actually drop.

DSR between 19 and 27 is VERY POOR

'For Sale' signs are gathering dust.
Buyers are treated like royalty in this over-supplied market. Some sellers panic, desperate to offload. Buyers can negotiate.

DSR between 10 and 18 is APPALLING

Buyers are nowhere to be seen.
There is virtually no one willing to buy. Some sellers resort to extreme tactics, desperate to offload, but few do. Buyers can negotiate ruthlessly and still get what they want. Bargains are everywhere. Expect strong negative capital growth.

DSR between 0 and 9 is DISASTROUS

A property investor's disaster area.
Sellers are absolutely desperate to sell at almost any price. Something has gone horribly wrong with this location and there are many owners caught holding a lemon. Expect prices to fall fast.

Powered by: www.dsrdata.com.au
Using supply and demand to score property investment potential

DSR score for property investment | YIP (2024)

FAQs

Is DSR data reliable? ›

It may be a very high DSR or a low DSR, but whatever it is, you cannot rely on it. Further research would be needed of a manual nature to confirm the demand relative to supply. Note however, that the benchmark that members should compare against for a reliable DSR is still around the 50 mark.

What is the 2 rule for investment properties? ›

What Is the 2% Rule in Real Estate? The 2% rule is a rule of thumb that determines how much rental income a property should theoretically be able to generate. Following the 2% rule, an investor can expect to realize a positive cash flow from a rental property if the monthly rent is at least 2% of the purchase price.

How do you calculate if a property is a good investment? ›

It's called the 2% rule. This applies to any investment, and says that an investor will risk no more than 2% of their available capital on any single investment. In real estate, this means that a property is only a good investment if it will generate at least 2% of the property's purchase price each month in cash flow.

How do you determine the fair value of an investment property? ›

Fair value is the price at which the property could be exchanged between knowledgeable, willing parties in an arm's length transaction, without deducting transaction costs (see IFRS 13). Under the cost model, investment property is measured at cost less accumulated depreciation and any accumulated impairment losses.

What is a good DSR? ›

It is advisable to maintain your DSR between 30 to 40% range at all times. This indicates that you have more disposable income than debt obligations on a monthly basis.

Is DSR worth using? ›

DSR is quite literally a game-changer. At 4K, detail is clearer, effects and shadows better, and overall image quality far superior. Simply click our GeForce Experience Optimize button and you'll instantly take your games to previously unseen levels of detail, immersing you in the experience like never before.

What is the 80 20 rule in property investment? ›

In the realm of real estate investment, the 80/20 rule, or Pareto Principle, is a potent tool for maximizing returns. It posits that a small fraction of actions—typically around 20%—drives a disproportionately large portion of results, often around 80%.

What is the 50% rule in real estate? ›

The 50% rule or 50 rule in real estate says that half of the gross income generated by a rental property should be allocated to operating expenses when determining profitability. The rule is designed to help investors avoid the mistake of underestimating expenses and overestimating profits.

What is the 4 3 2 1 rule in real estate? ›

Analyzing the 4-3-2-1 Rule in Real Estate

This rule outlines the ideal financial outcomes for a rental property. It suggests that for every rental property, investors should aim for a minimum of 4 properties to achieve financial stability, 3 of those properties should be debt-free, generating consistent income.

What is a good ROI for an investment property? ›

While what constitutes a 'good' rate can vary depending on an individual's investment strategy, location, and market conditions, generally, a return between 6% and 8% is considered decent, while a return of 10% or more is viewed as excellent.

What is the 1 rule for property investment? ›

The 1% rule of real estate investing measures the price of an investment property against the gross income it can generate. For a potential investment to pass the 1% rule, its monthly rent must equal at least 1% of the purchase price.

What is the average return on real estate investment? ›

Average Returns on Real Estate Investments

As you can see, there's a lot that goes into real estate investment returns. But if you want to know the average annualized returns of long-term real estate investments, it's 10.3%. That's about the same as what the stock market returns over the long run.

Should investment property be revalued every year? ›

Accounting treatment

FRS 102 requires revaluation each year to fair value (equivalent to open market value) of investment properties with value changes taken to profit or loss.

How to determine fair market value of rental property for taxes? ›

Also known as GRM, the gross rent multiplier approach is one of the simplest ways to determine the fair market value of a property. To calculate GRM, simply divide the current property market value or purchase price by the gross annual rental income: Gross Rent Multiplier = Property Price or Value / Gross Rental Income.

Who determines the fair market value of a property? ›

The appraiser or assessor analyzes real estate transactions that occur within a community and determine the factors that lead to the final sale prices.

What are the disadvantages of DSR? ›

DISADVANTAGES OF DSR

a. Packet header size grows with route length due to source routing. b. Flood of route requests may potentially reach all nodes in the network.

What is accurate DSR used for? ›

Accurate DSR 30mg/40mg Tablet is a prescription medicine used to treat gastroesophageal reflux disease (Acid reflux), dyspepsia (indigestion), and gastritis. It helps treat the conditions by reducing the amount of acid in the stomach thereby relieving symptoms of acidity such as heartburn, stomach pain, or irritation.

What is DSR data? ›

DSR stands for Demand to Supply Ratio, a predictor of capital growth potential. The DSR Works!

Is DSR better than anti aliasing? ›

It removes much more of the jaggedness / aliasing than the in game 8x / FXAA options. It also performs much better than the in game anti aliasing at the 4x/8x (MSAA) setting. To enable it, just find the DSR / Factor option in the NV control panel, and enable the '2.00x (native resolution)' option.

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