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https://www.youtube.com/watch?v=rk0Kl026uTU&ab_channel=OnProperty We are often told that if we are going to invest in property we want to find a suburb or street with low government housing. But is this actually true and does the data support this idea? Or can you invest in an area with high public housing and still get great growth in that area? Public Housing in a Suburb is No Big Deal Select Residential Property 0:00 - Introduction1:20 - Why this idea might be false5:08 - What does the data say?10:00 - Yield is not factored in11:25 - Something where there is a clearer trend13:30 - How to use data to build an investment strategy and predict where is likely to be good15:25 - Change in Gov housing vs capital growth Recommended Videos: How To Find Public Housing Hotspots In An Area Why Population Growth Does NOT Predict Capital Growth (Data Dive) Transcription Ryan 0:00We're often told that if we're going to invest in property, we want to find a suburb, we want to find a street with low public housing or low government housing, the idea being that if people own the properties that they're going to invest in them and renovate them, and the suburbs going to go up at a faster rate than other suburbs where that public housing in them are a higher percentage of public housing. But isn't this actually true? When we look at the data? Is this the trend that we say, Oh, can you actually invest in an area with public housing and still get great performance out of your property? So today, I have with me, Jeremy Sheffield, from select residential property to talk about this, to actually dive into the data I'm gonna answer once and for all, as to whether or not this has a big effect on future capital growth or not. So hey, Jeremy, thanks for coming on today. Jeremy 0:50Thanks very much, Ron. And thanks for giving me the opportunity to talk about this topic. Ryan 0:56This is something that has been talked a lot about in the community, there's a lot of experts out there who say to avoid public housing, and honestly, I can understand the reasoning behind it, avoiding you know, issues that can come with that lower socio demographic area, as well as the idea behind, okay, people own the mall owner occupiers, they're going to spend money painting their house and renovating it. And that could live the suburb as a whole. So what does the data actually say? Jeremy 1:25Well, the data suggests that there, it depends, is it there isn't really much in it. So it comes down to how long the social housing has been there. Let's say let's say a suburb is to host the new cities, sewerage treatment works, you can imagine that capital growth in that area is going to be diminished over over the following years. But eventually, that lack of capital growth, while the rest of the city suburbs are growing, eventually be factored into prices. And this is the thing over a long period of time, just about any sort of amenity or eyesore or advantage gets factored into the price of property. And from then on, it's it's business as usual. Queensland University of Technology did an interesting study about Brisbane Airport in in 1980, there was an expansion of Brisbane Airport, there was going to be a new flight path that was going to affect suburbs under that flight path. And for about four years, those suburbs had reduced capital growth. But then after that, it was it was business as usual. So it took four years for that negative amenity, to have an impact on prices, bring them back in balance. And from then on, it was his business as usual. So if your public housing has been there for decades, it is well and truly already factored into the price of property and is having no impact on capital growth. Ryan 2:57So what you're saying here is let's say we have an area that has a very low percentage of public housing, the government decides, okay, we're going to move a lot of public housing into this area increase the percentage...