David Koch's top four tips for profiting from an imminent property boom

Financial commentator and breakfast television host David Kochie says rising house prices are indicative of a patchy recovery rather than a price bubble.

He says to be careful of short term statistics but says if there is to be a property boom then buyers should be prepared.

“In a nutshell, the residential property market is patchy, it is recovering on the back of low interest rates and specific regions (such as Sydney) are looking strong,” he wrote for News Limited.

“But if the key property indicators continue to turn up and a solid trend is established in your region, it's worth brushing up on the best strategies to profit from a property boom.

He gave News Limited his top four strategies for profiting from a boom:

Be ready to pounce

“As Christopher and Wilson point out, it's a patchy recovery right now. But history tells us that when a property hot spot is established, the trend ripples outward from the starting point.”

“So maybe position yourself as a buyer in the suburb adjacent to a hot spot but where values are more reasonable but likely to get dragged up as buyers look for better bargains nearby. It could also be worth looking at property in a price bracket just above the one making progress, so the upward pressure absorbs your bracket and drags it up as well.”

Sell the laggards

“One problem from the recent property slump has not only been the softening in values but also the extended length of time taken to make a sale.”

“If you've tried, and failed, to sell a property and you're determined to move on, then start readying yourself and the property for another attempt.

“But make sure you price the property accurately. While activity could be improving, buyers are savvy.”

Ride next door’s coat tails

“Keep an eye out for recent property sales in your street or home unit block.”

“We have friends who live in a block of apartments and the unit on the floor above seemed to sell quickly. So they rang the real estate agent, who told them he had five other contracts on the property with unhappy potential buyers missing out.

“The agent showed through those potential buyers, who made three separate offers, and the property was sold within two days without actually going on the market.”

Keep an eye on the economy

“Property is a prisoner to the business cycle, macro and micro, so ensure the area you buy in isn't over-dependent on one industry or project.”

“Form an opinion on whether the wider economy is expected to remain stable.”