A property expert has bullishly claimed that property hotspots are a “complete myth” that almost guarantees buyers will pay top dollar, and has instead urged buyers to seek out the “warm spots”.
Housing affordability expert Ian Ugarte has advised buyers to approach the term “hotspot” with care, particularly in the current market.
“By the time a suburb or region has been declared a ‘hotspot’, demand is already very high and only likely to grow as more buyers’ dollars are drawn to the area, fearful of missing out,” Mr Ugarte said.
“It’s like putting money on a horse that’s just won the race. The time for windfalls has past – that horse has bolted, and FOMO will guarantee you’ve paid a higher price.”
According to Mr Ugarte, property buyers need to pay more attention to market intelligence to help identify suburbs that are yet to be discovered – the warm spot.
“Warm spots are those areas, often surrounding the so-called ‘hotspots’, that are cold, but starting to show signs of being more desirable places to live, with listings experiencing fewer days on market and median house prices trending upward,” he said.
“Whatever you do, just know that as soon as the taxi driver and the dentist tell you to buy in an area, it’s already too late.”
To unearth these ‘warm spots’, Mr Ugarte urged buyers to follow these five tips: