Catherine and others discuss Australia's Property Hotspots in Fairfax
Property adviser and buyers advocate Catherine Cashmore says not all towns are equal when it comes to making money from real estate.
"Investors often work on a herd mentality, they see an opportunity and rush in,'' Cashmore says.... (read more below)
"Property adviser and buyers advocate Catherine Cashmore says not all towns are equal when it comes to making money from real estate.
"Investors often work on a herd mentality, they see an opportunity and rush in,'' Cashmore says.
"Then when things start to look a bit uncertain, they stop investing and pull out. Owner occupiers, however, are there for different reasons. They don't need to buy or sell just because the investment market might not be so great. So choose an area that is always underpinned by demand."
To keep homeowner demand, the area must have strong employment.
Industries that often support townships or regions include agriculture, resources, tourism and manufacturing.
Government policy and infrastructure changes can also alter the fortunes of a regional area, so keep up to date with local and statewide issues, ResiMortgage chief executive Lisa Montgomery says.
"You also need to know why people are moving to an area and base the type of property you buy on that demographic,'' she says.
"If there are families moving to the area, a freestanding home would be a good choice. If it's singles moving in, a unit or townhouse should get rental and homebuyer demand.
"Understanding the current infrastructure and future projects will also help with your decision. Hospitals, supermarkets and transport are key to an area's development, population growth and therefore rental income and capital gains.''
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