It's not uncommon for investors and buyers to chase the next big hot spot with hopes of making a quick buck. But, hot spots aren't all they're cracked up to be.

By definition a hot spot is a suburb or area predicted to benefit from rapid short-term gains in value. However, despite an initial spike, a hot spot is usually characterised by slow or limited growth in the long-term that often eventually undermines short-term gain.

Due to the high transactional cost of property investment real estate should be viewed as a long-term proposition, which means hot spots often fail to provide the exceptional growth buyers hope for.

For more about suburbs we think are worth considering for property investment watch WBP's suburb profiles and more at WBP TV or come along to a Property Investment Information Evening.

 

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