Property Hotspotting Is Not A Fool Proof Method
Hotspotting is often used to trend the growth and demand for property in a certain area. Most buyers would opt to invest in areas where there is known demand, although this is not often the most important, according to Michael Matusik, a property analyst.
Several things have to be taken into consideration, and hotspotting being one of them – is not the most important. Long term potential is one of them, as there are no properties immune to fluctuating values. It is interesting to note that on one research Michael’s team did, properties in Queensland that were said to be “hot”, or immune to these changes did experience a capital loss.
Knowing the dynamics and trends are often the way to go, as no one can really tell the actual property value in the future. Forecasting and contingency plans will not only minimize losses but also aid in getting the most out of your property.
Read more about this on the Property Observer website.