Property Investment Hotspots

How pick the next property investment hotspot...

Knowing the stage of the property cycle is important. While all hotspots eventually cool down as capital growth kicks in, new hot spots are continue to emerge. The trick for the property investor is to be able to determine with maximum certainty which locations have the most potential for capital growth before they take off.

The majority of hot spots share certain key elements based on current pricing levels, transport accessibility, improvement in infrastructure services and employment nodes, proximity to major amenities and lifestyle factors.

In the current economic climate there will also be some affordable discounted opportunities, most often in areas on the cusp of an upturn.

The key elements to consider when locating property investment hotspots are:

Rental Property Shortage

Sometimes there is an obvious reason for an area to take off e.g. the mining resources boom in W.A. A boom like this will put pressure on housing accommodation and push up rental returns creating almost certain capital growth for the potential property investor.

Transport Infrastructure

Another factor to watch is transport infrastructure. In every state new rail and road links are being planned, in the process of being built or upgraded in both urban and regional areas, creating the potential for value growth and the emergence of new real estate hot spots.

Urban Sleepers

Downmarket suburbs on the fringes of recent hotspots are often ripe for transformation. Watch out for urban renewal plans, across the board retail refurbishments, and improvements in transport infrastructure.

Popular Lifestyle Changes

For a number of years the phenomenon called sea change made coastal regions and areas close to rivers and lakes a successful property investment option. As prices become less affordable in areas with water views, the tree changers emerged looking for peaceful rural properties within easy reach of large towns or cities.