Are you supposed to believe the new property hotspots advertised in the market, or is there a need for you to investigate and tread carefully?
Property hotspots are indeed areas where properties do well, but it often benefits the people selling the property more than the actual buyer. Property values are at their peak price, but this doesn’t mean that rents will follow suit. Relying on hotspots can increase the risk of being unable to recover the premium through rental income.
Rather than relying on hotspots, it is best to investigate areas with solid properties – even in lesser desired areas. They have the potential of bringing in more people as they are more affordable and will increase in value as people move in. Also consider looking at planned projects – such as new amenities as this is a key factor in driving up demand.
Read more about this on the Your Investment Property website.