Times of recession can also be a good time to buy property with many vendors being forced to opt out of the housing market.
While homebuyers and investors have kept their hands firmly by their sides and their wallets shut during recent auctions, some property experts say there is still money to be made.
Joseph Chou, founder and chief executive officer of property investment company Ironfish, said there would always be areas that provided good capital gains.
"History shows that recessions are an excellent time to purchase property," he said.
"Each suburb has its own dynamics which ultimately determines its overall success over a long period of time.
"There is always a dollar to be found in the property market with thorough research."
Mr Chou's "hot spot" recommendations included the upmarket suburb of Hamilton, describing the Hamilton waterfront as the new "It" location, and Tugun on the Gold Coast.
Residex chief executive officer John Edwards said there were two rules for picking a hot spot – look for an area where rentals were increasing, remembering that usually an area that has presented good returns in the past will continue to do so, and, secondly, look for distressed sellers who need a quick sale.
Mr Edwards said his website was a way of seeking vendors who were being forced to get out of the market.
The photos of such properties on the website usually showed houses and yards which were unkempt and needed repairs.
Ironfish managing director Damon Nagel said the property market had all of the signs that now was the time to invest.
"Australia has an increasing population and lack of housing supply. Property can only go one way based on these fundamentals," he said.
"There are also greater opportunities and choices during a recession, as most people follow the herd mentality by selling investment property and ceasing to find new investment options.
"The masses tend to buy when prices are high and sell in the tough times.
''Smart property investors have recognised this trend and capitalised on others' mistakes."
Mr Nagel offers property investors three tips during tough investment periods – don't be emotional; carefully examine the fundamentals of an area before investing (supply and demand, vacancy rates, population growth forecast, infrastructure expansion); be patient.
"Property should be a long-term investment strategy to reap solid returns," he said.
