fbpx

Warning: Undefined array key "ssba_bar_buttons" in /var/www/wp-content/plugins/simple-share-buttons-adder/php/class-buttons.php on line 602

Warning: Undefined array key "ssba_bar_buttons" in /var/www/wp-content/plugins/simple-share-buttons-adder/php/class-buttons.php on line 602

Warning: Undefined array key "ssba_bar_buttons" in /var/www/wp-content/plugins/simple-share-buttons-adder/php/class-buttons.php on line 602

Warning: Undefined array key "ssba_bar_buttons" in /var/www/wp-content/plugins/simple-share-buttons-adder/php/class-buttons.php on line 602

Warning: Undefined array key "ssba_bar_buttons" in /var/www/wp-content/plugins/simple-share-buttons-adder/php/class-buttons.php on line 602

The Next Big Property Hot Spot

It seems media today is filled with every ‘property expert’ and his dog predicting the next big thing, the hot spot of the year. The headline grabbing “2018 property hotspots revealed” will inevitably get people clicking links madly, watching TV shows and buying magazines to gain an insight into which suburb, town or city will make them their fortune if they buy a property there.

Some remote locations can evolve, develop, gain popularity and grow just because of their natural beauty. I can think of several holiday spots along the east coast of Australia that have started as a sleepy destination, (albeit with natural beauty) and developed into a tourist hot spot with exponential property price growth only to choke on its own success.

Holiday Hot Spots

Holiday locations are notorious for this type of boom and bust activity. Beach shacks are renovated, development occurs rapidly to cater for demand, prices escalate through popularity and the odd media story. Before long the once sleepy location with its natural beauty is teaming with people and becomes a victim of its own popularity. Eventually, the numbers of people start to dwindle as word gets around that “forget about that place it’s way too packed with tourists”, and thus the peak is reached. As numbers of people flat line or decline, so will property prices and the sustainability of any retail or commercial component that developed.

Market Volatility

While the above may take a decade to eventuate, it is worth noting the volatility that these markets can experience. There is no doubt that volatility is a property investors worst enemy because while popular markets are sometimes difficult to buy into due to high demand, unpopular markets are much more difficult to sell out of due to high supply. Once the tide turns it can be like a rip that drags you out to sea or sweeps you down the beach and you find yourself financially washed up on the rocks!

It is worthy to note that not all our ‘places of beauty’ have this fate. Through prudent, careful and well thought out town planning the boom and bust can be avoided and longevity of popularity prevail.

If you would like to talk about purchasing in a coastal community or have any other other property questions please do not hesitate to contact us via email or on (07) 3368 1604.  We are here to make sure you achieve optimum property outcomes.