The Next Property Hotspot Prediction
Is investment magazine property hotspot prediction always right?
The term property hotspot prediction can best be described as to pin-point a specific location which shows the right combination of demand and supply, and market growth factors which increases a property’s value with future growth within area or suburb.
Property hotspot prediction is usually HOT for investors! Why?
Because its safe to say, Australia is made up of a host of different types of locations and environments which appeal to different people at different life stages. Hotspots are only hot if you’re motivated by the marketing, right?
What are the true indicators? Does population growth within the property area matter because each market has its own unique characteristics, right?
How do you decide what is the correct property hotspot prediction for your investment strategy:
- Inner city
- Sea change
- Tree change
- Celebrity neighbours
- Transport upgrades
Do you know what’s risky? This is why you need to understand the relationship between population growth and capital growth cycles.
Allow me to explain…
More relevant to the whole property hotspot prediction debate is understanding why a specific property fits into your property investment selection criteria in terms of timing and strategy.
Will this property hotspot prediction add more income, cash flow, equity or net worth to your portfolio? Will the property hotspot prediction get you closer to wealth or higher debt ratios?
How would the suburbs which made it onto the “hotspot” lists compared if they weren’t on the list?
Typically if you do your research you can see the suburbs only increase in value because of a self-fulfilling prophecy. Investors buying on their emotions get trapped into believing the media or guru’s marketing spin and what they’re told is based on fact.
Is it based on fact or prediction? If an investor believes house prices will go up in value, and because so many investors get into the market at the same time it creates a bubble for demand, and when demand does go up fast in the short term this can trigger a boom.
However, you’d be aware there maybe little if any real underlying strength in capital growth, whereby demand and supply drives house prices higher over a long period of time. Is the demand likely to continue moving forward or slow down fast?
The trouble with property hotspot predictions are the misconceptions many investors have about property hotspot predictions. Just because someone in the media says a place or area is “hot” doesn’t necessarily make it right.
Some property investors pick property hot spots reasonably well, others do it very poorly. Whether it’s hot or not starts with understanding your needs, wants and goals, and what fits with your risk profile, strategy and within your financial parameters.
Then you can consider what’s happening in different markets, and which market offers the best opportunities at the time to fulfil your needs, wants and goals.
So what’s “hot” within that market. What if you buy a one bedroom apartment in a high rise? What if families are driving into that “hot” suburb! What about the experts which recommend a hot spot? Are they also selling properties in those locations?
Are you absolutely certain they have no vested interest there?
Property hotspot prediction goes hand-in-hand with proactive promoters which understand people buy from emotions and a place of total incongruence:
- Do they intrinsically know the market they’re trying to sell
- Do they live, work, and invested in the area themselves
- Do they research and study the area’s demographics, trends, populace, commercial development, and market trends
- Do they base their recommendations on media hype which is old, out dated or unreliable data
- Do they market for their own financial gain and not yours…
Property hotspot prediction it’s not out of the question you might get offers to be flown into a specific hotspot area, given free accommodation in a lavish five star hotel, wined and dined to impress and make you feel comfortable as you’re shown the next property to buy. They’ll make money when you buy…but will you?
If you’re wanting to invest wisely in the property market and buy in a property hotspot prediction, there are a number of essential qualities to consider so get the best leverage from your investment…
Property Hotspot Prediction