Damian Collins, Momentum Wealth
How to find the best investment location.
The things I look at for a hot spot 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 of amenity that's going to drive people to that particular location? I'd also be looking at population growth. Is there any industries in that town or city that's 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's a lot of supply coming into that area then I wouldn't necessarily rank it a hot spot. But one thing I always caution investors of is don't always be necessarily chasing the hot spot that's hot tomorrow. We've seen that in mining towns. A lot of people chased what was the hot spot 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 they're now finding that their properties have dropped anyway 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 hot for the next 20 years because that's how you make money long term in property.