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The Danger of Hot Spot Investing

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| 30 Jul 2012, 02:44 AM Agree 0
Seems everyone is looking for the next 'hot spot' and marketing organisations such as magazines, TV, marketing companies et al use the phrase 'hot spot' a little too liberally. Property Observer has just completed an analysis of last years 'hot spots' and were underwhelmed to say the least.

http://www.propertyobserver.com.au/hotspots/the-21-hotspots-that-weren-t/2012072955568?utm_source=Property+Observer+List&utm_campaign=705b78a2fa-July_9_20124_10_2012&utm_medium=email
  • cranic | 31 Jul 2012, 09:32 AM Agree 0
    Interesting I wonder how many so call guru's got it wrong?

    There is mixed opinions of what's going to happen in the next couple of years.
  • Eos Property | 31 Jul 2012, 11:46 AM Agree 0
    Hi Cranic,

    For me the article reinforces the need for individuals to have a longer term perspective and be prepared to ride the good and bad times through. Adopting such a strategy, in preference to following the herd, is more assured of success, all things being equal.

    I might also add that property, as an asset class, is far more suited to a long term perspective over shorter term views.

    Where the article does fall down is that it only considers 12 month results - I would prefer the author of the article conduct a similar exercise based on predictions made 10 years ago.
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