If you are like me you probably subscribe to property investment magazines. I get two every month and find them helpful and interesting.
A regular feature seems to focus on the latest “Hot Spots” around Australia. By this they mean the next suburbs or towns where the computer is telling them will be the best place to buy for quick capital growth.
The problem I have with this kind of stuff is that whilst the computer analyses are amazing, the computer doesn’t really have local knowledge.
For instance a tiny Adelaide beachside suburb called Ethelton was touted as the next best to buy in Adelaide a couple of years back. The problem is that Ethelton is a very small suburb and the turnover of sales is so small as to make opportunities very slim indeed!
There is nothing wrong with chasing capital growth, but I suggest doing a lot more research than simply reading some of these reports before jumping in!
Talk to local real estate people and get some experienced knowledge.
