Ultimate Coach – Buy & Hold – 7th May 2025

In this session, you will gain a comprehensive understanding of the buy and hold strategy, designed for investors with long-term financial goals, limited time, and stable income.

While buy and hold is not the fastest path to wealth, it remains a viable option when executed strategically. Michael May breaks down how to stack the odds in your favour by analysing market conditions, understanding demand drivers, and leveraging the right data.

Here’s what you’ll learn from this session:

When Buy & Hold Makes Sense:
Michael explains that buy and hold is best suited for investors with a 10+ year horizon, a solid income, and little time for hands-on projects. It’s not the fastest strategy, but when done right, it can build a strong foundational portfolio.

The Supply & Demand Equation:
Using a classic supply and demand graph, Michael illustrates how prices rise when demand outpaces supply. He outlines key demand drivers including population growth, job creation, infrastructure investment, lifestyle shifts, and affordability.

Boom Score and Suburb Selection:
A central tool in this strategy is the Boom Score—a metric that combines multiple indicators like vacancy rates, days on market, online interest, and stock levels to predict growth potential. Ideal suburbs show Boom Scores between 55 and 80. You’ll learn how to use resources like BoomScore.com.au and Hot Property Finder to identify high-potential suburbs.

Key Investment Metrics to Track:
You’ll be guided through essential indicators including:

Vacancy Rate: Preferably under 2%
Days on Market: Below 60 days, with stable historical trends
Stock on Market: Target 1–1.3%
Three-Year and Ten-Year Growth Rates: Below 50% and 7% respectively, to indicate future growth potential
Rental Growth and Vendor Discounting: Indicators of increasing demand and price sensitivity
Online Interest: High buyer-to-stock ratios suggest market heat

Affordability and Household Income:
Michael stresses the importance of targeting areas where rents and mortgages are under 30% of household income. This ensures affordability and signals future growth capacity.

GVA Score and Manufactured Growth Potential:
The Grid Variance Analysis (GVA) score helps assess whether you can apply renovation or subdivision strategies to increase property value. Higher GVA scores (>25%) support renovations, while lower ones (0–15%) may signal potential for subdivision or dual income setups.

Suburb Shortlisting Process:
You’ll learn how to filter and shortlist investment suburbs using data tools, starting with 15–20 candidates and narrowing down to a core focus of three. Michael emphasises the value of becoming an area expert and layering in future strategies like renovation or dual-income conversion.

Common Pitfalls and Final Advice:
While buy and hold can be powerful, it’s also easy to get stuck. Michael shares from personal experience how buying multiple properties without immediate manufactured growth can stall your investing journey. The key is to plan several steps ahead, combining buy and hold with value-add strategies to keep your momentum going.

Action Steps: