SEARCH INVESTMENTS​

STELLAX SEARCH ENGINE​

Stellax Search Engine aims to make identification of profitable investments easier. Stellax constantly monitors the real estate market and calculates the potential return of each of the properties that are currently on sale. The users are then allowed to adjust their search criteria to find the investments that suit them best. Read the description of the variables below carefully before using the tool.

It is vital for an investor to understand that a higher return usually implies a higher risk. Therefore there are other factors (apart from the potential return) that should also be taken into consideration when making a prudent investment decision. Currently the factors included in the search criteria are:

Basic factors: PRICE, SQUARE METERS, PRICE PER SQUARE METER and CONSTRUCTION YEAR
The size and the price of a property are the basic factors that are taken into account, when looking for a property. All the prices are denominated in EUR. Also note that the prices shown are asking prices. Due to the fact that many Dutch properties are sold at a premium to the asking price, the final sum paid may turn out to be higher in reality. The construction year of a property plays an important role as well. The newer buildings are often better insulated and have lower maintenance costs among other things.
ppsqm
 Return: GROSS YIELD

Gross rental yield is a measure of investment return. It is calculated as the estimated annual rent divided by the asking price. Note that the actual return received is lower than the gross yield, because the latter does not account for expenses incurred by investors. The average gross yields for relatively large apartments hover around 4-5% in Amsterdam (check here). One can also get an estimate of a net rental yield on the report page.

yield
LOCATION, POPULATION DENSITY and POPULATION GROWTH
Location plays a crucial role in the property price mechanics. Stellax search engine allows you to filter the properties by location (to do so, mention the street name/postal code or city name in the location field). How can one predict if a certain location will have/has a strong investment potential? One way is to look at the population developments. A positive population growth (measured in %) could be a sign of a sustainable return. At the same time, a high population density (measured in the number of people per square kilometer ) could be a sign of advanced development of the area. The population growth and population density are estimated on the municipaluty and neighbourhood levels respectively.
density
Source: https://www.clo.nl/node/25232
 DAYS

Days variable is an estimate of the number of days it will take to rent out a property. Stellax employs a separate model to compute it and considers such factors as location, rent amount and size in its estimation. The lower value of the variable implies that the investment will start to earn return and pay off sooner. Often times the algorithm finds the properties that have an estimated gross yield of >10%. Pay a special attention to the days variable in that case, since it may take months to rent out such property.

days
 DESCRIPTION
Stellax Search Engine also allows you to filter the properties by the key words in their description (to do so, mention the key word in the Description field). When a key word is specified, the search will be bounded to the properties that have that word in their description. An example of a use case for this feature is searching for the word ‘klus’. This could help to identify the properties that are most likely in a bad state and need to be renovated, which could mean a possiblity to derive an additional value.
klus
 Stellax Risk Score (SRS)

There are many parameters to consider when evaluating risk and therefore a risk scoring model was developed to combine those parameters into just one metric – Stellax Risk Score (SRS).

Different risk proxies matter more to one investor than another , but Stellax aims to calibrate the metric as a consensus forecast based on opinions of professional investors (which would be of great help to ocassional investors). More parametrs and more professional opinions are expected to be included and inquired in the future.

Currently SRS is a composite of:
– Population change
– Population density
– Days to find a tenant
– Construction year
– Property size
– Neighbourhood (local crime and income)
– Area amenities (shops, cafes, restaurants, etc.)

The score ranges from 1 (highest risk) to 99 (lowest risk).

Disclaimer: The information provided by Stellax is not intended to replace any legal, real estate, tax, or other professional service. Stellax does not guarantee any investment return to the service user. The presented figures are an estimation of the algorithm based on the limited information. Please read the limitations section carefully.  Do not make an investment without understanding the corresponding risks.
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