Mar 12, 2018
New research has refuted one of the most common beliefs in real estate – that areas with high crime rates have inferior capital growth.
It shows that affordable areas attract strong demand, generating above-average price growth, regardless of the local crime statistics. This is particularly so if a cheaper area is undergoing gentrification.
In this episode Terry covers:
- Debunking the long-held real estate myth that problem areas have inferior price growth
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The latest results from RiskWise Property Research which show housing in high-crime areas across Australia is outperforming the general property market
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Affordable high-crime areas with significant gentrification are likely to produce strong price growth, particularly when dwelling prices in the inner and middle rings are unaffordable
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Examples of suburbs with these findings in Franskton North and Busby
- That the research found affordable high-crime areas
with significant gentrification are likely to produce strong median
price growth - whereas suburbs with high-crime and
low-gentrification typically deliver growth below the city
benchmark eg Osbourne Park in Perth
- Examples of Sydney suburbs with high and low median
price examples and their comparative capital growth rates over
time
- Research showing how crime and other bad stigmas do not affect the long term capital growth of an area
For reading: Crime
areas shine on price growth
Links for this show
Hotspotting Website – www.hotspotting.com.au
Hotspotting Facebook – https://www.facebook.com/hotspotting/