How To Spot An Up And Coming Area
If you want to make a profit on your property purchase, you should be looking to buy in an area that's on the up. We asked leading property journalist Ed Mead and Tina Jesson from Home Stagers how to spot an up and coming area.
Step 1: Location location location
If you are planning to develop a property to let, the location is of paramount importance as it could mean the difference between selling the property you've poured all your funds into or leaving it languishing on the market.
Tina Jesson says that in order to maximise the return on your investment, it is much better to buy a rundown property in a good area than a house that does not need much work in a bad neighbourhood.
Step 2: Homes on the market
When visiting an area, notice how many property boards outside houses and flats. If there are lots of homes for sale, you can be certain it's somewhere people are looking to buy property.
Tina says that if people are selling their homes, new blood will be moving into the area and investing in it themselves.
Step 3: Home improvements
Lots of building activity is always a good sign of an area on the up. Look out for new builds as well as evidence of improvements being made on existing properties.
Tina suggests looking for skips outside buildings as these show that money is being spent on improving property in the area.
Step 4: Shops and cafes
Another indicator of an up and coming area is a healthy influx of new shops and eating establishments. Lots of these popping up on the high street could mean it's the next big place to buy.
Ed Mead recommends buying in areas where supermarkets, such as Waitrose and Sainsbury's, and coffee shop chains have been newly built. These firms will have researched where people are moving next so it's a good idea to follow them.
Step 5: Estate agents
Estate agents especially will know where people will be looking to buy next, so if there are a few of these on the high street, the area is definitely one to watch out for.
Step 6: Investment potential
There are several practical points to look for in an area that will ensure you will get a good return on your investment. Consider what future buyers themselves will look for.
Ed says to make sure there is a good school nearby and perhaps gardens that a family will enjoy. For young professionals who may move there in the future, transport links will be important. You will be in a very good position later down the line when the market goes up.
Step 7: Where not to buy
Avoid areas where there is anything that would put you or any future buyers off living there. A major consideration should be noise pollution.
Tina warns buyers away from areas near a flight path or on a railway as well as properties near factories or pubs that could prove noisy.
You can also find out about planning applications in the area that could affect the value of your property through Plansearch Plus or Homecheck, and avoid encountering any unpleasant surprises.
