Spotting property investment opportunities
Thinking of getting on the property ladder? Considering the next purchase in your housing portfolio? There’s plenty to consider when you’re looking into buying a home and lots of people out there to advise you on the next hot spot neighbourhood or area to put your cash. Listen to the updates and pearls of wisdom people give you but do your own research as well, there’s lots of information out there if you know what to look for.
It’s a cliché to say it but Phil and Kirstie aren’t wrong when they bang on about location, location, location and it is so important to consider this when you’re looking for a strong property investment. If you’re looking for a house that will give you a great return on your investment, you can pretty much rule out the neighbours and areas that are already very popular. Unless you are looking for a project property, something run down and in need of some loving attention, the houses in fashionable parts of town will be pricey to start with and while you can be hopeful that the prices in that area will continue to rise, the return on investment can be much greater if you spot an opportunity in an area that is about to rise in popularity. Get on top of the cool, upcoming neighbourhoods and you could snap yourself up a solid investment for the future.
Speak to local estate agents, stalk the house prices online in the areas you have your eye on and look to see what property there is going for. Read up to see if there are any regeneration or infrastructure projects coming up. In Glasgow there is a huge amount of building work going on in the Tradeston area just south of the city on the Clyde. With regeneration projects such as the significant Barclays Bank building work going on in that area, it’s set for a boom in the future. There will be a raft of office workers (2,500 say Barclays), all of whom will be looking for nice places to shop for their lunch, stop in for drinks after work, nurseries for childcare, shops to spend in. The areas is in for some much needed development and regeneration and this bodes well for property prices nearby.
Another way to spot a good and upcoming area can be as simple as observing the increase of coffee shops, pubs, restaurants and bars. Who would have thought in the early 2000’s that Finneston at the southern edge of Glasgow’s West End would be a vibrant hub of amazing eateries named the ‘Hippest place in the UK’ by The Times by 2016? It was barely a flicker of cool back in the day but as the BBC, STV and other media hubs moved their offices to the Clyde, so the options for shops, cafes and restaurants to service their demanding workforce moved too. The subsequent gentrification of Finneston has been incredible to witness and in only a few short years, the fortunes of property owners in this area have blossomed! Spot these changes as they begin by finding out about the big plans of organisations that command a strong workforce but also, look out for skips and building work going on as they start. Slowly, trendy boutique coffee shop by vegan sandwich outlet you can see the changes and that is the time to jump into investment in the area.
Once you’ve identified where changes are coming, check out neighbouring areas. Often as property prices climb in one up and coming hotspot, the nearby areas are also in demand for people looking to commute to their new place of work. If you see new rail links planned, these can be a great indicator of a new commuter belt upswing so keep your eyes peeled.
You would be amazed at the impact good schools can have on the providence of a neighbourhood or area. In short, parents will pay extra, and over the odds in order to get their child into the catchment area of a good school. As a result, keeping an eye on improving Ofsted reports can give you a really good indicator of which areas are likely to attract families looking to rent or buy. Areas of Glasgow with excellent schools are already pricey. Consider Giffnock, Milgavie and Bearsden – all have schools with exceptional reputations and this is reflected in their house prices. The significant upswing of house prices in East Renfrewshire over the last 10 years has been attributed largely to the increasing quality of schools there. If you are seeking an investment opportunity for a family sized home to either flip or rent out, you would be wise to keep you eye on Ofsted reports as they are released on areas under your watch.
So, plenty of tips for looking into that prime location for investment. Here’s a short recap to find your way to a good solid property asset for the future:
Do your research
Speak to local estate agents and property experts, speak to your friends, speak to colleagues and take in all the information you hear about areas, developments and changes in areas that fit the bill for your property investment.
Keep your eyes open
What’s that you spy? An advert for a new infrastructure development in a formally run down area? How many new office workers will be based there, what do they want from their new area of work? Can you maximise a profit from buying retail or housing property in that neighbourhood? Perhaps it’s transport development which is planned with rail links to and from a new area which could attract people in the not too distant future? Look ahead and see if you can imagine what those people will do, will they be looking for places to shop, eat and drink? Or is there an opportunity for property in the rental market or this new area?
A groundswell of gentrification
Nothing says ‘up and coming’ like the appearance of an artisan sandwich shop on a previously barren street. Look what happened to Finneston in Glasgow! If you spot skips emptying old retail units, find out what’s is replacing it. With new coffee shops and outlets come people and there lie your perfect investment opportunities to make a profit on neighbourhoods that are on the up and headed for fashionable popularity.
Ofsted improvements = desirable catchment areas
You might well be priced out of areas that already boost excellent schools but keep your eyes peeled on those newly released Ofsted results and you might just spot a trend that you can benefit from. From experience, the UK property market can be heavily influenced by the catchment areas of schools which have fantastic results and great reputations. Parents will buy based on schools and demand necessarily pushes up the house prices in those areas. If a school is showing marked improvements in their Ofsted results, it will be more appealing to parents and houses in the area are likely to head for price increases.
Know your locations
Use all the information and research gathered above to pin point your ideal locations for investment. And then just set your property alerts, contact local estate agents and get read to pounce when you see a property come up in your chose spot.
There are definitely plenty of ways to ensure that your investment is in the right spot and while we don’t have a crystal ball to tell exactly what will happen, we hope these tips will go a long way to help your search!
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