Real Estate Investor Magazine November/December 2023 Edition | Page 93

INVESTING

While many faced disappointment , seasoned investors remain strategic , focusing on understanding market dynamics , analyzing price trends , and balancing supply and demand . To guide investors , let ' s explore property hotspots , good capital gains , and lucrative rental returns .

Understanding Property Hotspots Property hotspots are areas where prices surge beyond the national average due to specific micro circumstances . These opportunities yield above-average returns on investment ( ROI ) if purchased wisely . A good capital gain typically occurs over a longer period , averaging between 2 % and 6 % house price inflation since the 2008 / 9 market crash .
For rental properties , an annualized ROI of 8-12 % is considered good , with anything exceeding 15 % being spectacular . However , high returns require diligent management , marketing , and customer service .
Factors to Consider that Investors should evaluate :
• Expected cash flow from rental income ( benefiting from inflation ).
45 DEC 2023 / JAN 2024 Real Estate Investor Magazine