049 - Season 4 Episode48 - The truth about hotspots in property investment

Hosts:

• Cam McLellan, CEO of OpenCorp
• Michael Beresford, Director of Investment Services

Episode Overview:
In this episode, Cam McLellan and Michael Beresford tackle the buzzword "hotspots" in the property market. They uncover what really makes an area a hotspot and discuss the reliability of hotspots for long-term property growth. The conversation offers a deep dive into why chasing hotspots might not be the best strategy for smart investors.

Key Points Discussed:

1. Definition of Hotspots:
   • Areas that have seen rapid growth, often due to media hype or vested interests.
   • Created by high demand and reduced supply, leading to rapid price increases.
   • Developers may manipulate the market by drip feeding land to keep pressure on supply.
2. Reliability of Hotspots:
   • Buying in a hotspot often means paying an inflated price.
   • Smart investors aim to buy for value, not hype.
3. Countercyclical Investing:
   • Investing in areas before they become hotspots to maximise growth potential.
   • Clients of OpenCorp have enjoyed $254K+ more than the average property investment property thanks to our property selections.
4. Market Cycles:
   • Property markets typically have cycles of growth, correction, and stagnation.
   • Investors often buy at the top of the market due to confidence built from previous growth, only to face corrections and stagnation.
5. Smart Investment Strategies:
   • Avoid emotional decisions and hotspots driven by hype.
   • Use a proven, research-based process to identify growth corridors with planned infrastructure and limited land supply.
6. Importance of Expert Guidance:
   • Having a coach or mentor to guide through the investment process.
   • Formulating clear goals and strategies to achieve long-term financial success.

Summary:

• Hotspots: Often overhyped and can lead to buying at inflated prices.
• Smart Investing: Focus on areas with planned infrastructure and limited supply before they become hotspots.
• Expert Guidance: Seek mentors like OpenCorp to navigate the property market strategically.

Additional Resources:

• For a comprehensive guide on property investment and choosing the right mentor, get a copy of "My Four-Year-Old the Property Investor" by Cam McLellan. Get your copy here: https://opencorp.com.au/books/my-four-year-old-the-property-investor/

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