{"id":2003,"date":"2016-08-15T06:43:51","date_gmt":"2016-08-15T06:43:51","guid":{"rendered":"http:\/\/www.trc-gorod.ru\/?p=2003"},"modified":"2018-06-26T11:47:15","modified_gmt":"2018-06-26T01:47:15","slug":"is-it-a-hotspot-how-to-be-sure","status":"publish","type":"post","link":"https:\/\/trc-gorod.ru\/is-it-a-hotspot-how-to-be-sure\/","title":{"rendered":"Is It a Hotspot? How to Be Sure"},"content":{"rendered":"
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It\u2019s not necessary for your property to be in a so-called \u201chotspot\u201d to achieve capital growth, but it can be helpful when you\u2019re trying to build up your portfolio because you can potentially recycle your deposit faster than in a slower moving marketplace.<\/p>\n
A hotspot has the same drivers pushing it towards growth as does a so-called \u201cnormal growth\u201d marketplace… it\u2019s just taking place in a shorter timeframe.<\/p>\n
Although all market drivers are important, one particular influencer –\u00a0infrastructure investment – stands out because it reveals where money is being spent, jobs are getting created and of course property values are set to increase.<\/p>\n
So for example, when you see a company like Woolworths buying and building in an area you know they\u2019ve done the research that shows growth will happen – enough to support their expansion into that location.<\/p>\n
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New roads being built, new or expanded airports, hospitals, etc., are also good indicators of growth as these projects are a direct result of an increase (or projected increase) in demand.<\/p>\n
Ask the following questions to determine if a particular suburb could be a future hotspot:<\/p>\n
What does the market look like? How long is it taking for properties to sell? Are local investors buying in the area?<\/p>\n
Look for areas where the suburb has experienced growth of a solid 2.5% growth per quarter, totalling 10% a year. This indicates the market should begin moving in the next one to three years.<\/p>\n
You can determine this by looking for the percentage of individuals who are in high paying growth industries such as medical or tech.<\/p>\n
Take a look at property prices. Can their salaries support the rents as they are now? Could they afford them after any increases?<\/p>\n
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Are nearby suburbs undergoing change that is influencing – or soon will be influencing – the suburb you\u2019re looking at? If market drivers, amenities, etc. are similar then it\u2019s possible your suburb will grow as well.<\/p>\n
Age, profession, marital status…all of these demographic factors play a part in what type of properties will do well in a certain location.<\/p>\n
Find out what the majority of the demographic want; close to every conceivable amenity, near quality schools…whatever the majority of your population desires will likely be the better performer.<\/p>\n
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Look for suburbs where growth was stagnant for some time, but is now growing to the point where the yields are at least 1% to 2% over the past 5 year average.<\/p>\n
These are just some of the questions you\u2019ll need to ask when researching possible growth markets. At TRC-Gorod<\/a>, we have helped thousands of Australians learn proven tips and strategies to build their portfolios safely and effectively.<\/p>\n
\n<\/strong>This could indicate the market is headed upwards.<\/p>\n