SSI - Buy and hold

What is the SSI - Buy and hold?

SSI stands for Strategy Suitability Index. The SSI is a set of indexes used to gauge a market's suitability to a specific property investment strategy, for example:

  • Renovate and sell (aka reno flip)
  • Buy and hold
  • High cash flow
  • Buy off the plan
  • Buy at discount
  • Low risk
  • Development
  • Each strategy has its own unique requirements in terms of the nature of the market for success. The SSI scores each market based on the statistics that are most important to the type of strategy.

    For example, the SSI - High cash flow is highly dependent on low vacancy rates and high yields. The SSI - Reno flip on the other hand is dependent on a quick sale, so the days on market becomes more important.

    Each statistic is given a different level of importance for each strategy.

    The SSI - Buy and hold is a score out of 100 for the suitability for a market to the strategy of Buy and Hold. The higher the score, the more suitable the market is to this strategy.

    The buy and hold strategy is the simplest concept - buy a property and wait for capital growth to do its thing. However, this strategy is one that most property investors find very difficult to deliver immediate capital growth.

    How does the SSI - Buy and hold work?

    All SSI scores are derived using a number of statistics.

    A buy and hold strategy is dependent on capital growth. The DSR+ is the all-encompassing statistic for scoring capital growth. So the SSI - Buy and hold is really just another name for the DSR+.

    Why is the SSI - Buy and hold important?

    If your investment strategy for your next property is to simply buy and hold for capital growth, then an index to gauge suitability for a specific market for that strategy is an absolute must-have.

    You can examine the SSI statistics from the SSI tab in the Suburb Analyser if you have an appropriate membership. Not all members have access to the DSR+ or SSI tabs.

    A list of memberships and what privileges they come with can be seen on the Pricing page. To change your membership, use the Profile page.

    Is the SSI - Buy and hold reliable?

    Yes, the SSI - Buy and hold considers a number of statistics rather than just one. It is unlikely that all statistics or even half of them are subject to anomalies at the same time. One statistic can be out of whack, without affecting the overall score significantly.