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

05/30/24 • 11 min

Brick to the Future: Property Investment Show

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:

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.
Reliability of Hotspots:
- Buying in a hotspot often means paying an inflated price.
- Smart investors aim to buy for value, not hype.
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.
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.
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.
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/

Facebook: http://www.facebook.com/opencorp
Twitter: @OpenCorp_au
LinkedIn: https://www.linkedin.com/company/opencorp-au
Instagram: @OpenCorp

Hosts:

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

Key Points Discussed:

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.
Reliability of Hotspots:
- Buying in a hotspot often means paying an inflated price.
- Smart investors aim to buy for value, not hype.
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.
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.
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.
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/

Facebook: http://www.facebook.com/opencorp
Twitter: @OpenCorp_au
LinkedIn: https://www.linkedin.com/company/opencorp-au
Instagram: @OpenCorp

Previous Episode

048 - Season 4 Episode 48 - Buyers Agents, Real Estate & Investment Firms

Hosts:

Cam McLellan, CEO of Open Corp
Michael Beresford, Director of Investment Services

Episode Overview:
In this enlightening episode, Cam McLellan and Michael Beresford delve into the distinct roles of buyers agents, investment advisors, and real estate agents. They clarify the unique skill sets and purposes of each profession and guide you on choosing the right expert based on your property goals.

Key Points Discussed:

Real Estate Agents:
- Primarily assist in buying or selling homes in specific areas.
- Have detailed knowledge of local amenities and property listings.
- Work for the seller to get the highest price possible.
Buyers Agents (Advocates):
- Assist buyers in negotiating with real estate agents.
- Follow the buyer’s instructions to find and negotiate the purchase of a property.
- Do not typically provide extensive research or investment advice.
Investment Advisors:
- Focus on long-term property portfolio building.
- Offer step-by-step guidance, from goal setting to property management.
- Conduct extensive market research to find the best investment opportunities.
- Provide ongoing mentorship and support to grow your portfolio.

Summary:

Real Estate Agents: Best for buying your own home in a specific area.
Buyers Advocates: Ideal if you’re uncomfortable negotiating with real estate agents.
Investment Advisors: Essential for building a profitable property portfolio with strategic guidance and support.

Key Takeaway:
Choose the right expert based on your goals. For home buying, a real estate agent is suitable. If negotiation is a challenge, hire a buyer's advocate. For strategic, long-term investment success, consult an investment advisor like Open Corp.

Additional Resources:

For a comprehensive checklist on choosing the right mentor and investment group, 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/

Facebook: http://www.facebook.com/opencorp
Twitter: @OpenCorp_au
LinkedIn: https://www.linkedin.com/company/opencorp-au
Instagram: @OpenCorp

Next Episode

Season 4 Episode 50 - What Returns Would You Expect From An Investment Portfolio?

What Returns Would You Expect from an Investment Portfolio?
In this insightful episode, Matthew Lewison and Michael Beresford from OpenCorp shed light on the impressive returns that can be achieved through smart property investment. They highlight historical performance, share compelling case studies, and discuss the importance of a tailored investment strategy. The episode is a must-listen for anyone looking to understand the potential of property investment and the key factors that drive success.
Speakers:

Matthew Lewison (OpenCorp Co-CEO)
Michael Beresford (Executive Director, Property & Investment Services)

Episode Summary: In this episode, Matthew Lewison and Michael Beresford discuss the expected returns from an investment portfolio, specifically focusing on residential property. They delve into historical performance, comparison with other asset classes, and strategies for maximising returns.

Key Points:

Residential Property Outperformance:
- Residential properties have outperformed other asset classes in Australia over the last 60 years.
- Property can be geared more than other asset classes, enhancing returns.
Historical Returns:
- The Australian property market has achieved about a 9% per annum return over the last 18 years.
- OpenCorp clients have seen an average of 11% per annum on total portfolio returns
Common Pitfalls:
- 70% of Australian property investors only own one property.
- 80% borrow to buy established or old houses, missing out on depreciation benefits.
OpenCorp's Strategy for Success:
- Customised strategies based on individual income, tax position, and goals.
- Emphasis on structure, strategy, and repeating proven methods.
- OpenCorp clients are 2.5x more likely to own two or more properties than the average investor.

If you're interested in learning more about how you can achieve similar returns through strategic property investment, book a strategy session with OpenCorp today at opencorp.com.au.
Our experts are ready to help you build a portfolio that aligns with your financial goals and maximises your investment potential. Don't miss this opportunity to take your property investment journey to the next level!

Facebook: http://www.facebook.com/opencorp
Twitter: @OpenCorp_au
LinkedIn: https://www.linkedin.com/company/opencorp-au
Instagram: @OpenCorp