Property Hot Spots: How To Predict the Best Places To Buy
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.
- 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.
- 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.
- 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?
Sign up for one of our free information and education events, where you’ll be equipped with the tools, resources and support to thrive, and not fall behind on your path to financial freedom – whatever that may look like for you.
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.
Recent Articles
House Vs Apartment Investment – Which Is Better?
These days property comes in all shapes and sizes, giving property investors more options than ever before. The question on everyone’s lips when it comes to the house vs apartment investment equation, is how do you truly know which is better?
The All Monies Mortgage Clause – What You Need To Know!
This article is about the all monies mortgage clause and how it can potentially affect your property investment. When you signed your bank loan agreement to secure funds for a mortgage, did your contract contain an all monies mortgage clause?
How You Can Be 3-7 Years Away From A Multi-Million Dollar Property Portfolio
Using real estate to become a successful property investor is underpinned by one very important philosophy – profits are better than wages. The goal of property investors in the market is to target optimistic returns. However, this does beg the question – if property investing is such a smart and lucrative profit making machine then why don’t more people do it?
Property Strategist Sam Saggers: ‘How You Can Benefit From My Wins And Losses’
Real estate is a game of winning or losing, and as a professional property strategist, in order to get to where I am today, I can honestly say I’ve experienced the full spectrum. But to understand how I’ve managed to turn any loss I’ve had into a gain and support others to do the same, it helps to know where it all began.
How To Create A Step By Step Property Plan
To succeed as a property investor, there is one fundamental component you need – a plan. You need a plan that leaves no bases uncovered that would potentially cause issues in the future. Don’t have a plan? Well, you can use my basic road map!
The Secret Behind Buying A Winning Property
When you analyse a deal, it is wise to take it through the following four steps to ensure you have a basic level understanding of the property itself and how it fits into its environment…
Is Buying Off The Plan Right For You?
Buying off the plan can be a great purchasing strategy for property investors because it allows us to create equity for a small amount of money upfront.
In this article we explore what buying off the plan is, and what factors you need to consider in order to go through the process smoothly.
The Ultimate Location Rulebook For Buying Property
Within any market – primary or secondary, there are indicators of the market’s ability to perform. When we understand what these market drivers are, we can organise our investment properties into locations that are primed for growth. The ‘Location, location, location’ is actually derived from more than just a post-code. These buying factors are split up into two groups – macro drivers and mirco drivers…
1 Deposit, Multiple Properties – Here’s How!
Buying an investment property and growing a portfolio that is going to generate long-term wealth is a discipline of business. In basic terms, this means you have to have a clear understanding of how you’re going to maximise your profits. Because of this, every investor needs to be able to develop a cash on cash strategy to help bank roll their property endeavours to ensure they have a functional and profitable business model.
How To Accelerate Wealth Creation Through Real Estate
Wealth is a habit; and rich people have the habit of living well. They pass that on, they teach, share, network and help each other. The fact remains, those you surround yourself with, do have a high impact on your ability to create and sustain wealth.