Stellax update: Is your rental property investment safe or risky?
Previously we talked a lot about proxies for risk, since a prudent investor wouldn’t only focus on return. 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).
When searching for Dutch investment properties with Stellax.org/search, one can now specify SRS, which aims to assess overall riskiness of a rental property investment.
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).
P.S. Energy label has also been added to the search criteria with more to come.