Everyone always wants to know where the next big property hotspot will be. A property hotspot is generally an area that is under performing, usually within close proximity to more popular suburbs. When these suburbs becomes too expensive, buyers usually move to these neighbouring areas that are more affordable, causing eventual price changes in property prices.
Unfortunately, no one can predict with 100% accuracy the next ‘big’ hotspot. However, if you can identify an area with the potential to rise in value, you are going to make money. So, how do you do this? Well, here are some tips to help you spot the hotspot:
Look for areas whose population is growing faster than the national average rate. The Australian Bureau of Statistics website is a great source. Just make sure this growth will be sustained. There is a good article I put on the Face Book page follow the link https://www.facebook.com/BlueWavePropertyStrategies
Again, ABS statistics will tell you if an area’s medium household income is on the rise. Generally, this means the people that live in a suburb are becoming more affluent. When this happens, they look to move on to bigger, better housing in other areas meaning housing turns over putting pressure on prices.
Look for areas that have employment growth. Are new businesses or industry opening or closing? Are supermarkets, services, even McDonalds, opening in the area? Coles or Woolworths don’t move into an area where they are not going to make a profit! Large companies and diverse industries moving in means an area is growing now and probably in the future.
Speak to the council
Speak to the local council and devour their website and publications for information on local development in the area. Generally, councils don’t invest in development and/or infrastructure if there is not a growing population that warrants it
Hopefully, this will give you a few ideas on how you can identify your property hotspot! Good luck!