The term ‘Hot Spots’ can imply rapid capital growth, however, my belief is that we are in a season where we are not going to see significant increases in prices in the Northern suburbs of Adelaide.
It looks and feels very much like the 90’s when we had the infamous “recession we had to have”. During those years, we not only saw prices go down, but even rents slipped back in many cases.
So, does that mean we don’t invest in property? - Not at all. We are in a season where there are many excellent buys and the key thing to look for is the actual return on the investment.
Many suburbs in the Northern areas of Adelaide are showing 6-7% returns, well above inflation and interest rates.
It’s a season to do homework very thoroughly before jumping in. Take the long view and enjoy the cash-flow while waiting for the next season of capital growth.