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b'ARVE Error: Mode: lazyload not available (ARVE Pro not active?), switching to normal mode\\n\\n\\n\\n\\n\\n\\n\\n\\n{"@context":"http:\\\\/\\\\/schema.org\\\\/","@id":"https:\\\\/\\\\/onproperty.com.au\\\\/problems-suburb-hotspot-lists\\\\/#arve-youtube-i2yemzytana659a0b2e64caf781643811","type":"VideoObject","embedURL":"https:\\\\/\\\\/www.youtube-nocookie.com\\\\/embed\\\\/I2YeMZytaNA?feature=oembed&iv_load_policy=3&modestbranding=1&rel=0&autohide=1&playsinline=0&autoplay=0"}\\n\\n\\n\\nLists about suburb hotspots put out by magazines and websites tend to outperform the general market, however there are some problems with suburb hotspot lists that you need to be aware of.\\n\\nA lot of people love the property hotspots that the magazines and the websites put out there each and every year to say, "Here are the hotspots for 2016 that you should invest in." "Here is a list of areas most likely to grow." But there are some problems with these suburb hotspot list that I wanted to talk about and make you aware of.\\n\\nThe first problem is that you can only actually invest in one suburb. And so, while this list tend to outperform the general market in Australia, there are going to be suburbs in this list that will under-perform and there\'ll be some suburbs that will extremely over-perform to make up for the under-performing suburbs. So the problem is, as an investor, you can only invest in one property in one suburb. So even though these lists give you a better chance of achieving success, investing in one of these properties in the list isn\'t a guarantee of success.\\n\\nSo you should never just stop at the hotspot list, you should always do more research so you can hopefully find that suburb within the hotspot list that\'s going to outperform all the others. So, that is a problem that you can invest in one suburb, not all of them, and so there\'s no guarantee there.\\n\\nThe second problem is that you don\'t necessarily understand how they chose each area. Often, they use different criteria to choose each area, depending on the report that you are looking at. It will affect what areas they choose and how they choose those areas. If you\'re going from Residex and choosing one of their reports versus one of the reports in API Magazine versus a report in Your Investment Property Magazine versus a report on dsrdata.com.au. All of these different reports use all different criteria in order to estimate their hotspots.\\n\\nNow, this isn\'t a bad thing. Often, they\'ll talk to market experts or they\'ll get certain data to make these predictions, but if you don\'t understand how they chose each area, how are you going to have the confidence to choose which suburb to invest in? How are you going to have the confidence to know that, "Yes, this suburb that I\'m choosing that is in the hotspot list actually has the criteria required in order to grow." How do you know that? And how can you have the confidence if you don\'t understand how and why they chose each area?\\n\\nSo this is one of the major limitations of hotspots and one of the major limitations of recommending areas for people to invest in in the first place. If you don\'t explain to those people how you got your prediction, how you got your data, then they will receive the information, but they probably won\'t do anything with it because they don\'t have the confidence. So, if you are one of those people looking at hotspots, then try and understand how they chose each area. What information they used and what it means. So when it does go time to invest for you, you can invest with confidence.\\n\\nThe third problem with hotspot list is that the areas may not fit your investment goals. It\'s great news that some suburb in Sydney is a hotspot, but if studio apartments are starting at $1 Million and you\'ve got $60,000 for a deposit, well, that\'s not really going to be a feasible investment for you. If you can only borrow $300,000 from the bank, you\'re not going to be able to invest in this hotspot. Or maybe you have goals of passive income,'