Property Hot Spots: How To Predict the Best Places To Buy

by | Mar 20, 2021

Historically real estate has always been a good place to put your cash. It’s an asset you can feel and touch – unlike stocks or shares – which makes investors feel safe. And, in the right place and time, property can grow in value while you sleep, meaning as an investor you don’t have to do much to increase your personal wealth.

But as investors, how can we better predict the next hot spots for real estate investment so we can get in at the right price? How do we know the best places to buy that are guaranteed to grow in capital value, return regular rent increases and ensure future personal wealth?

 

BE AN ACTIVE, ENGAGED INVESTOR

ANZ bank recently adjusted its “pessimistic” forecast of a 10 per cent drop in capital house prices, to a more positive outlook, predicting a rise of 12 per cent in Perth, 9.5 in Brisbane and 9.4 for Hobart

That’s all good news. The only caveat is that smart investors got into the Brisbane and Hobart markets years ago when prices were low and started to rise. 

Property investors who are able to better predict how a market is going to rise or fall are paying close attention. They’re on the ground watching what properties are selling for, keeping track of reserves vs sale price and going to auctions. 

In simple terms, they know the market because they’re investing some time and energy looking at it. And if they’re new to investing and they’re smart enough to know what they don’t know, they’re asking experts, like the team at Positive Real Estate, to help them on their journey.

 

SEE THE POTENTIAL OPPORTUNITIES

Events such as COVID-19 understandably rattle our cages and scare people off spending or investing. People like stability. But the truth is, COVID-19 or not, real estate markets are ever-changing and property values go up, and down, then back up again, all the time. That’s the reality of property and why we say it’s a long game, not a quick fix.

Being able to see past the scary headlines and see future opportunity, where others just see risk, is a great skill to have as an investor.

Currently, Melbourne property prices might be feeling the pinch. The Australian Bureau of Statistics reported a mass exodus of Melburnians in the three months to the end of June 2020, with people fleeing the city and prolonged COVID-19 lockdown periods, for regional areas with fewer restrictions. Property prices in the metro area dropped, as did rents, and vacancy rates for rental properties increased.

With all that doom and gloom you could be forgiven for avoiding Melbourne like the plague.

But all projections show that the city will bounce back and long-term effects will be slim to none. Add into that the fact that the Victorian government has recently announced billions of dollars of investment into infrastructure, which will grow the state’s economy, create jobs and drive-up property prices. Suddenly investing in Melbourne looks like the smart thing to do.

 

REMEMBER THE GOLDEN RULES

It can be hard to make absolute predictions about where to buy property, but there are some golden rules that never fail us.

  1. Stay close to the action – You don’t want to buy a property that’s more than a 30-minute drive from the CBD or a place economy. Proximity to infrastructure, jobs, opportunity and desirable lifestyle is always going to drive property prices in the right direction.
  2. Do your numbers – Make sure you have enough money to make the purchase you want and stick to your own budget. Ensure you have a personal buffer should your own circumstances change, and a buffer for each investment property you own.
  3. Location trumps property type – Say you have $400,000 and that will get you a one-bedroom apartment in a place that attracts money, wealth and a highly liveable lifestyle. Or it will buy you a four-bedroom house out in the bush, hours away from a decent coffee. Location trumps property if you want low vacancy rates, high rent and steady capital growth over time. 

 

HOW TO PREDICT WISELY

Need help in predicting where to invest in property?

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Book your spot now and find out what you need to know about the current market landscape and how you can make it work for the ultimate wealth creation opportunities.  

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Turning $80k into $800k

Turning $80k into $800k

Welcome to the first episode of Property Investor Tales – Stories From The Front Yard!

Each week I get to speak to property investors from around Australia about their investing journeys. As the head of coaching at Positive Real Estate, I’ve been fortunate to connect with thousands of investors who have a story to tell. My hope is that from these incredible investors, your own investing journey is made that little bit easier. 

Abe Pasilidis is my guest today and he has an inspiring story to tell. I won’t give too much away but listen out for an $80k investment has turned into $800k, plus a hilarious story of property management gone wrong (when you DIY). 

Enjoy this conversation with Abe!

Once you’ve listened to this episode, I’d love it you hit the subscribe button  so you get notified every time a new episode drops. 

As you can guess I love hearing people’s property investor tales so if you’d like to share yours then please get in touch with me via email at  propertyinvestortales@positivementor.com.au You can watch all of these podcasts over on YouTube at Positive Mentor or at positivementor.com.au
Today, I am talking about some key lessons I learned from Dr. Andrew Wilson, a housing economist and a funny bloke. He is a member of the Chartered Surveyors Community, a wealth of knowledge, and a voice of reason when it comes to real estate investment. I’ve adapted his predictions into my strategies and share them with you today!

The Biggest Lie of Investing Revealed

The Biggest Lie of Investing Revealed

You have been lied to… by you! Today we are talking about the biggest lie you have been telling yourself about real estate investment and your wealth creation journey. Want to know what it is? I could just TELL you, but then you wouldn’t learn. It’s embedded in this podcast – feel free to DM me when you think you’ve found it!

Today, I am talking about some key lessons I learned from Dr. Andrew Wilson, a housing economist and a funny bloke. He is a member of the Chartered Surveyors Community, a wealth of knowledge, and a voice of reason when it comes to real estate investment. I’ve adapted his predictions into my strategies and share them with you today!

20 Investing Lessons from COVID-19

20 Investing Lessons from COVID-19

What do you need to know about corona economics? We have learned a lot of lessons through investing during the pandemic, and I want to highlight some of those today. I have a list of 20 however I don’t think I’ll get through them all! I want you to walk away from this episode understanding what happens when real estate markets transform and what will happen if we don’t take advantage of the lessons that are right in front of us.

A Property Investors Guide To Guaranteed Rental Increases

A Property Investors Guide To Guaranteed Rental Increases

Rent is your weekly or monthly incomes from your property. And it’s an income you don’t work for. It’s the absolute key to good cash flow and passive income, so it’s essential you are able to keep raising your rents at regular intervals. But, what makes it possible for property investors to do this?

My Real Estate Pet Hates

My Real Estate Pet Hates

This episode is about all of the things in the real estate community that piss me off. From investors consulting clickbait on social media to predatorial real estate agents giving themselves fake awards, we are going to talk about everything that is wrong with the real estate industry that you need to know about as a property investor. Hopefully, after listening to this you will be able to avoid some of the most common pitfalls that property investors fall into during their wealth-building journey.

Why Do You Want to be Financially Free?

Why Do You Want to be Financially Free?

Will you survive the emotional roller coaster that is property investing? It takes time, money and commitment to create a portfolio, but sadly most who start out don’t make it, why? Well, let’s Wealth Coffee Chat!

The Only Time You Should Sell An Investment Property

The Only Time You Should Sell An Investment Property

The golden rule of property investing is to buy well and NEVER SELL. However, there are always exceptions to the rule… Firstly, let’s look at why you would keep an investment property? If you buy a great piece of real estate, in the right location, it will always create a passive income for you, so there will be no reason to sell it.