Preview Mode Links will not work in preview mode

Hotspotting


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
  • The latest results from RiskWise Property Research which show housing in high-crime areas across Australia is outperforming the general property market

  • 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

  • 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/