10 ways to spot the next up-and-coming area - continued

Beware of property sourcing companies, (Property Ass. in this case) I have found out to my cost that things are not always as they seem, it pays to look carefully at what you are actually buying.

Having put a deposit down on an off plan apartment in Mandurah Australia (Seashells development), said to be the up and coming hot spot of Perth, I subsequently found that this particular apartment was a lemon, it had a wonderful view of the back of villas built in front, not the ocean which I was led to believe was the case. Consequently the valuation was below estimations, I didn't complete (long story) and it looks like I have lost the deposit. It still hasn't been sold by the developer two years later.

Moral of the story, location and quality are the key ingredients, especially when the market slows down. Everyone has jumped on the bandwagon here so there are now too many apartments for sale in Mandurah, sales are slow and the defective apartments don't sell.

I strongly agree with the mindset that the property boom is artificially created and it is not really the result of natural economics. The goverment created this boom because they are benefitting from it. They created the atmosphere over the years so that the shortage will drive prices up and the fact that they are not building any properties or creating socially afforable estates shows that they knew what they wanted.
The excuse is that it is good for the economy. We are told that let there be influx of immigrants as it helps the economy but in the real sense it drives prices of properties up as the demand for available homes surpasses the supply of affordable homes (even counting those being build). The govt gets capital gain tax on every property that exchanges hands. As the prices goes up, their revenue goes up. The govt is slow to resolve the problem as they see it as a way to fund the treasury.
In the meantime, unemployment is not reducing though in real times the number in employment is going up as a result of Eastern europeans working here!.
We are in danger of fooling ourselves to believe that this growth is sustainable!. History teaches us that the higher we go the bigger the fall. Are we prepare for such a fall. The signs are all around us. Who is going to pick up the pieces!!!. God help us

Spotting up and coming areas should not be limited to social economic trends. I'm persuaded that one of the biggest factor that should be looked for is the geographical disposition of the place. To get a good impression of the place then one need to employ historical facts and use the environmental agency's outlook on the area. Fact is there are areas that are more prone to flooding and other natural disasters than others due to their disposition. We need to research this before investing. No one wants to built without counting the cost or build on shaky ground!
Ed

SteveP,
"If only banks and building societies would take a short breath before taking action on repossessions"!!! You must be kidding!! That is my money which the bank has on deposit and is lending out to aspirational punters who have bought in a clearly overpriced market with little or no equity in their homes. People will start to lose confidence if the banks decide to go soft on repossessions and foreclosures. That's when you will really see a housing bust..

Buy high, borrow max, get a wide screen tv and flash car, go to jamaica every three months, eat out every night and spend all your money in the pub, pump up your credit cards, get a loan, get a conservatory and another wide screen tv for the bathroom, get into arrears then sell to me and rent back long term.

Bill

High property prices are a bad thing for everyone except the bankers and lenders - they give the appearance of great wealth whilst driving people into poverty, homelessness and debt. Some of the WW2 prefabs put up for a few hundred pounds to help bombed families now sell for big money.

1.) We definitely need more affordable homes for purchase or rent, and if the only way to house families and drive down silly prices is to build more homes, then so be it.
2.) so much of the new housing being built consists of larger, land-hungry detached properties - whilst what is needed is two and three bed flats
3) bring forward the rejuvenation of drab sink housing estates which are impossible to let.
4)We have nearly a million empty properties. This is quite obscene!

Not before time that someone came forward with a positive spin against the doom and gloom merchants, well done . Property will remain a good investment in the long run ; don't enter just for a quick buck .
If only banks and building societies would take a short breath before taking action on repossessions etc ; interest rates will drop again eventually and put people back on an even keel , we wouldn't then be in this ludicrous position of harming peoples confidence in the market and thus having a self fulfilling condition of weakening the market.
Keep the faith in property ; history shows that in the long run you win.