When investing in property you want to try and find the next property hot spot to help you achieve maximum profit and hit your capital growth or cash flow goals faster.
This can sometimes be hard to work out, you need to do a lot of research and have you hit the market at the top when everyone else is buying there.
Where do you find these hot spots? Well there a few key things I would look for such as infrastructure projects and government spending such as train lines, new roads and schools. Also you should look at the property clock for the area you are purchasing in. The property clock for Sydney is different to Brisbane and also suburbs are different to other suburbs.
One of the biggest factors is what is going to be the demand for the property in the future? Will land be scarce, or is there an over saturation of available property – how much employment there will be? Is the location desirable for the proposed tenant or end buyer of the property? Always keep the end goal in mind.
As you will have seen in the market in the last two years Sydney has been off the scale with capital growth. Sydney as a whole was a massive hot spot, but some areas performed better than others and I imagine that it was the blue chip areas that saw the biggest capital growth. However if you are now buying into the Sydney market we are seeing prices come off a little and even be reduced by 2-5%, which is not much considering that the growth was about 30% in the market over those two years.
Right now as I write this I look at Brisbane, Sunshine Coast and Gold Coast as the next trending hot spots – but that is fairly wide spread and there are areas that are going to perform much better than other areas.
What we want to look at is also what type of property to buy in that hot spot? As some of the big developers have been in Brisbane buying up their development blocks for some time as they knew where the market was moving too. This could actually create an oversupply of a particular type of property such as units in the New Stead and West End markets with the supply out stripping the demand. So if your buying off the plan make sure you know the market well. However houses in that market will be very strong as the demand will be high with less supply.
My top five things to look out for a hot spot;
- Employment and job prospects
- Large infrastructure projects and government spending
- Scarcity of land
- Life style, Location, Schools, hospitals and Shopping centres
- Suburbs next door or close to other suburbs that have already seen growth.
Always remember to try and work out the property clock for that, state, city and suburb and try and buy at 6pm on the property clock for the best capital growth.
I have just put together a report on Brisbane’s newest hot spots, download
it by clicking HERE or email me your postal address at email@example.com and I will send you out a hard copy of the report.
Lets find you your next investment – cheers Chris