One thing that property investors will always look to do is to buy property in areas where the values may soon increase. This means that you may be able to buy a property for less than a comparable property in neighbouring areas for now, but if your predictions are correct, values here will go up to catch up with them.
Think back to the east end of London prior to the UK being successful in their bid to host the Olympics way back in 2012 – a previously undervalued area was to become under the world spotlight, and with that came an almost overnight rise in property values.
So how to you spot areas that are ‘on the up’? Here’s my top tips of things to look for:
If larger property developers and house building companies appear in the area, usually you’ll seen signage displayed on a site some months before building work actually commences. It’s a good indication that things are happening if a large site is acquired by a major development company or builder. A quality new housing development in an area will naturally attract buyers and should also lead to improved infrastructure and neighbouring facilities.
New estate Agents appearing on the high street – particularly if they belong to one of the larger chains. This is a pretty good indication that the property market in the area is buoyant.
New supermarkets opening. The big supermarket chains are major land owners in this country and will develop new stores as they see fit to meet demand. They will have site of overall town plans and will know where the areas of further house building are being planned.
Large office developments, manufacturing plants or factories appearing. Companies opening new premises in an area will give a boost to local employment and create a demand for housing.
Existing high street premises being opened up as new, trendy restaurants and bars. Similarly, fashionable home-ware and furniture shops appearing.
Any large scale development or conversion project to create modern, desirable accommodation. If an area is brought down by drab, run down buildings and these are then converted into trendy flats or apartments, you can bet on the area seeing a surge in interest.
New or improved transport links in an area. Sometimes these follow suit but planning departments that know of major new development in an area will look to improve road links in particular in anticipation of greater traffic flow.
Local government or council led regeneration programmes. Particularly if it involves the provision of new community facilities such as sports centres, libraries, local authority offices or health care centres etc.
The emergence of specialist retailers aimed at more affluent types, such as wine merchants, delicatessens, specialist coffee shops, art galleries etc.
These are just some of the indicators that you can spot yourself.
If you combine this with continuous research online into house sale values, then this will help you too. There are even specialist websites that will give an indication if an area is generally undervalued too.
Remember, you make your money when you BUY property, so ensuring that you get in on a deal at a discount to market value is important.