One of the keys to successful property investment is finding the best area before everyone else. So what should you be looking for to get the lowest prices, highest yields and – hopefully – strongest increase in value?
Cafes & Bars
Are there a lot of independent cafes and bars popping up in an area you’re looking at for your next investment? This is often seen as a sign that people living nearby have disposable income. These eateries will draw new people to the area, and will additionally increase the footfall, desirability and aesthetic appeal of the neighbourhood. Seeing big chain names, such as Starbucks or Costa can signify that the area has already “emerged” and you may have already missed your chance.
Property Investment Q&A #4: Should I invest in an area I don’t know?
Building work
If the sky is littered with cranes and all you can see are building sites, people are investing money in exactly that area for sure. It is always a good idea to note down the name of the developers and projects to then be able to do your own research – how big is the project? Who is their target market? Does tis agree with what I’m looking for?
Transport Links
If an area already has good transport links to major towns or cities, it will act as a magnet to young, working professionals who are looking for more affordable cost of living. Alternatively, if there are plans to improve links in the area, this could be a spot for the near future.
Young Professionals
Young professionals are usually attracted to up and coming areas due to their more reasonable house prices, good transport links and growing social scene. Once you’ve spotted a significant increase in this demographic, you should sit up and take note as it is likely the neighbourhood is trending.
Even if you’ve found somewhere that ticks every single box, finding a new property hotspot always involves an element of luck and great timing, so don’t be disheartened if you don’t find the perfect fit straight away.
