If we had the ability to predict the real estate market, that would be a skill that would make all our dreams come true. Unfortunately, that is just what it is; a property investor’s dream. Instead of making a calculated guess as to where the best spots would be to purchase an investment property, you can actually choose areas classified as hot spots. Hot spots are areas where the value of the investment will increase significantly in the future. There are certain factors which point to areas deemed to be property hot spots.
The population mass lives in the city or within close proximity to the city. This means that transport needs to be easily accessible. Suburbs that have regular transport services such as trains and buses should be looked at. If there is a modern motorway, tunnel or link to the city, that is a great bonus for commuters.
Any property near water always attracts buyers. People love the lifestyle factor of beaches, canals and lakes, so these properties are always a good investment. Golf courses and modern shopping facilities will also attract buyers in the future.
Watch out for disused former industrial areas, especially on the waterfront. Governments have converted these run down warehouses into upmarket exclusive living spaces consisting of secure waterfront apartments with landscaped walking paths. This style of accommodation is popular with people earning good incomes.
Certain suburbs have gained bad reputations and have been shunned by buyers for years. However, these suburbs are now being looked at because they are affordable. If they are well positioned with adequate infrastructure, there is the potential for that suburb to change and become a trendy hub. Near city suburbs in capital cities have undergone enormous transformation due to market trends and not government renewal programs.
The ripple effect
Prime suburbs always seem to hold their price, even if the market is sliding elsewhere. However, this also puts them out of the price range of many property investors, as these prime suburbs will often become too expensive. So the smart thing to do is look at the bordering suburbs and surrounding areas. This is known as the ripple effect.
A wise investment can set you up for a secure financial future. As well as selecting a hot property in an area that has the potential to boom, it is equally important to select the correct mortgage for your needs. Saving money on your mortgage will mean you can pay off your loan sooner. There are many straightforward loans available to property investors. AClear Path Home Loan from BOQ has a low interest rate and it is worth having a look at this loan when doing your loan comparisons. Investment properties are a way to securing financial freedom. Always have a goal and a plan in place before proceeding with any large purchase.