Hotspot reports a trap for rookies
Editor in Chief for Property Portfolio Magazine, Debra Beck-Mewing said the problem will be even more evident now that the Australian property market is emerging from the restrictive influences in operation prior to the Federal election on 18 May 2019.
Hotspot reports are issued by a number of organisations aiming to profit from being able to name the next 'hot suburb'. However, the reports are often based on outdated statistics and point to areas that have already peaked, so the purchaser is being influenced by history, not a sales predictor.
"The use of outdated information is just one of the hotspotting features that mislead buyers," Ms. Beck-Mewing said.
"Each suburb has numerous markets such as three bedroom houses versus town houses or low priced property versus higher priced property. So while a suburb might be highlighted as having potential, it's important to know whether this will be the case for your property type and budget," Ms. Beck-Mewing said.
Buyers should also be mindful that most hotspot reports will be significantly out of alignment as the property market has experienced rapid changes since the Federal election in mid-May.
"We're operating within an extremely different market than the one in operation prior to the Federal election. The market has two distinct speeds with some property types attracting crowds at auction while different property in the same suburb needs significant discounts to achieve a sale," said Beck-Mewing.
For more information on how to successfully build a property portfolio without getting caught in the traps, pick up a copy of Property Portfolio magazine, available here.
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Disclaimer – This information is of a general nature only and does not constitute professional advice.  We strongly recommend you seek your own professional advice in relation to your particular circumstances.
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