Get tips from hotspot reports, but do your own due diligence and research

A hotspot report can be a good way to start thinking about locations where property prices are likely to rise over the coming years.

They will also provide information about demographics, infrastructure, amenities and the type of properties to consider within a “hotspot”location to help guide your thinking.

But you should not rely on hotspot reports alone and certainly not assume that capital growth is guaranteed.

As highlighted by hotspotting.com.au’s Terry Ryder, there i sno such thing as a “bulletproof” suburb.

To make sure your decisions are based on solid facts the key is research, research, research.

Read absolutely anything and everything about the property market in your chosen area.

Extract information from friends and family who have residential holdings. Track sale prices against original asking prices using local papers and residential listings websites.

What is the sales history of the property and its neighbours?

The internet has enabled buyers to be better informed than everbefore, and for free.

You may also consider purchasing an independent report on a suburb or street from the likes of RP Data, Residex or Australian Property Monitors.

This article is from Property Observer's free ebook Top 10 Property Investment Tips