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:
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 flowis highly dependent on low vacancy rates and high yields. The SSI - Reno flip on the other hand is dependent on a quick sale for success. So a low "days on market" is very important for a reno flip.
Each statistic is given a different level of importance for each strategy.
An off-the-plan purchase is a purchase of a property yet to be built. The investor commits to the purchase without being able to see anything but the plans for the new property. The plans are all they have to go off.
The SSI - Off the plan is a score out of 100 for the suitability of a market to an investor looking to buy off the plan. The higher the score is,the better the chances of finding a suitable property.
All SSI scores are derived using a number of statistics. An Off the planinvestment strategy prioritises the following statistics:
If your investment strategy for your next property is to buy a property off the plan to have equity on settlement, 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.
Yes, the SSI - Off the plan 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.