"Investor Hotspots" - Here's the problem...

Most investors don’t realise they’re making a big mistake… until it’s too late.

They chase the so-called “investor hotspots.”

They hear a suburb is booming, see their friends buying in, read an article online - and follow the herd.

But here’s the problem.

When too many investors buy into the same area, it doesn’t always inflate prices – but it almost always floods the rental market.

Here’s what I mean…

Imagine a suburb where 20 new properties are sold.

If 16 of those are bought by owner-occupiers and only 4 by investors, there are just 4 properties that end up on the rental market.

But flip that?

Say 12 are bought by investors. Now, there are 12 homes competing for tenants.

And what happens when there aren’t enough renters to go around?

Vacancy rises. Rents fall. Investors start panicking.

This is happening right now in parts of Melbourne – especially in areas that you’re probably hearing about on podcasts and in blog posts.

Many investors bought, hoping for quick returns.

But now they’re slashing rents just to find tenants.

That’s not a smart strategy. That’s risk.

So what do I recommend instead?

Buy where owner-occupiers are buying.

Families. Couples. Upsizers. Downsizers.

People who are planning to stay long term, send their kids to school, build a life in the area.

Why does this matter?

Because in these areas:

•            There’s less properties available for rent, as most are bought buy owner occupiers, so your investment is more likely to be tenanted quickly

•            Rents are more stable – and often rise over time

•            And when demand increases, emotional buyers (owner-occupiers) are willing to pay more than investors ever would

We’re already seeing this play out.

As interest rates begin to fall, emotionally-driven buyers are jumping into the market

They’re worried about missing out.

They’re worried that if they wait, they’ll have to pay more.

And in many areas, they are right.

So, if you’re thinking about buying an investment property this year…

Don’t just follow the herd.

Look for areas with high owner-occupier demand and less supply.

Because that’s what drives long-term capital growth.

And that’s how you build real wealth – without the stress