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February 22, 2022
Both nervous first-home buyers and accomplished investors have similar goals: a strong financial future via a property that will give back in spades.
One of the best ways to secure this future is by purchasing a property in a hotspot, otherwise known as inconspicuous places, often close to more popular, blue-chip locations which stand every chance of performing well.
Finding a hotspot takes plenty of savvy research and property perception but here are some easy tips for you.
Infrastructure and industry
A property's potential for capital growth relies in big part on its current and upcoming infrastructure and industry, including anticipated employment and population growth.
We recommend researching federal, state and local council projects to help you answer this point.
At the same time, however, too many cooks - or cranes, in this instance - can definitely spoil your property broth with abundant development cranes on the horizon often signalling possible property oversupply.
Also, beware of towns relying on just one or two industries, such as mining, for employment.
While such areas can initially offer great short-term capital growth, we don't recommend relying on these few industries for market success.
Location, location, location
This brings us to the most recognised script in real estate - and there's a good reason why it is!
A property close to plenty of amenities especially schools, shops and transport routes will invariably outperform those in the middle of nowhere.
Aim for a place no more than 30 minutes from the CBD with at least one popular shopping locale close by.
Population growth
Similar to the last two points, considering the population, including the demographic, of an area is crucial to property success.
If a locale's population is shuddering to a halt for whatever reason, it's unlikely to be a long-term, if any, hotspot.
On the other hand, a suburb soon to gentrify, or welcoming large numbers of intra, interstate or international migrants, will change an area's hotspot possibilities for the better, allowing you to enjoy higher demand and prices.
A good example of this situation is that of Australia's regional areas with our 25 largest non-capital city regions enjoying extraordinary growth during the past few years as COVID restrictions had people of all ages fleeing the cities.
Cheap as chips - or is it?
Cheap doesn't equal a hotspot.
Focus instead on how much comparable properties are selling for and attend auctions in person to see for yourself the depth and range of interest in the area.
Research days on the market and median prices over a solid length of time.
In short, do your due diligence and bury yourself in details, statistics and research of the market.
Last but definitely not least....
In amongst all your due diligence, we maintain that the best way to get in first on the property market and succeed from the get-go is by purchasing off-market.
And we're (not exactly!) biased when we say this with the current, extremely hot market attracting more and more buyers and sellers to this increasingly unhidden secret.
Listing Loop's off-market sales listings allow you to get in early to prime locations and snap up properties before anyone else has even arrived.
We like to think of it as VIP access to some of the best properties in the country - and this first dibs service is also all for free with new pre-market, off-market and 'secret' listings added to Listing Loop every hour.
Our home loan connections at Lending Loop can also give you a hand with your borrowing budget, refinancing, and much more.
So, whether you're planning to buy, sell or invest in property, sign up to become a Listing Loop member for free. Sign up via ListingLoop.com.au or download our app.
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