How to find the best investment location | SPI Investor Series
Do you get confused about all the different hotspot locations that are written about in the media? If you are looking for the key areas that Momentum Wealth look at when choosing a hotspot area to purchase your next investment property in Perth make sure you watch this video.
Our Managing Director, Damian Collins, was invited to speak on this topic on Smart Property Investment magazine’s ‘Expert Insights’ video series.
Hear what he had to say in the video above and transcript below.
“The things I look at for a hotspot are things that are going to improve the value of an area, not only short term but in the longer term. So I’d be looking at, is there any major infrastructure that is going to come to that area that’s going to improve the accessibility or amenity, that’s going to drive people to that particular location.
I’d also be looking at population growth. Is there anything like industries in that town or city that is going to drive a lot of people to come and work at that particular location or city.
And certainly some other things to be thinking about include, is there going to be a lot of supply? If there is a lot of supply coming to that area then I wouldn’t necessarily rank it a hotspot.
But one thing I always caution investors about is don’t necessarily just chasing the hotspot that’s hot tomorrow. We’ve seen that in mining towns, a lot of people chased what was the hotspot, and everyone wanted to get into Port Hedland, Karratha, Gladstone, some of these Queensland regional towns, and a lot of them really burnt themselves and are finding that their properties have dropped anywhere from 20-30% in some cases, and rents are down a long way. So when I look for a hotspot, it’s not just what’s hot today, it’s what’s going to be hot for the next 20 years, because that’s how you make money long term in property.”