None of us want to pay a premium price for a property only to have it devalue over time. Conversely, a property in a disreputable neighbourhood isn’t ideal. So how do you find the middle ground? Richard Carpenter from Fine & Country St Neots gives tips on how to spot an up-and-coming area.
We all know that when it comes to property, it’s all about location, location, location. But how do you spot a good one, where property prices are likely to rise, turning your new home into a good investment? Getting into an area in the early stages of growth will lead to the greatest profit over time. While there are no guarantees, there are a few tricks to help uncover these neighbourhoods.
Trace the Transport
Transport links are often a good indicator of up-and-coming areas, particularly in cities. Look at the major transport links or centres – train stations, bus depots, ferry terminals and so on — and trace the lines in a little further out. A few stops out of the centre is where growth is likely to occur. London is an obvious example, where research by Zoopla found property within a five-minute walk of a tube station can be up to 21% more expensive than similar properties half an hour away.
The same is true outside of cities — follow the train lines. Towns or smaller cities near major hubs, like Brighton, Bristol or Manchester, are likely to increase in value, as people balance convenience with commuting. Look for new lines, too. If a new station is planned, or a new bus route or train line, there’s a good chance property prices will pick up.
Follow the Youth
Young professionals seem to have an instinct for up-and-coming areas, or more likely, they make it so, Follow the 20s and 30s crowd to get an idea of where the next hotspot will pop up. When young professionals invest in an area, services and infrastructure tend to follow, and property values can increase exponentially. The property market in Bristol is a good example.
Look for Hipsters
Hipster coffee shops, delis, and gastropubs are often a sign that a neighbourhood is on the cusp. If you see an area with a smattering of interesting stores that look out of place – think independent book shops, vintage boutiques and vegan lunch spots – the chances are they’ll attract more. Where hipsters go, others follow. Conversely, a plethora of chain stores tend to mean an area has peaked – although Waitrose may be an exception: a study by Lloyds Bank found proximity to Waitrose added an average of 12% to the value of a property, so a new Waitrose may be a harbinger of wealth.
Check out the Neighbours
Areas that have seen significant growth can be a good sign for nearby areas. One neighbourhood growing in popularity often bolsters those around it, as those who can no longer afford to live in the latest hotspot look close by.
Choosing an up-and-coming area involves a certain amount of risk, but there are clues to guide you. A reputable real estate agent can also guide you as they tend to have a holistic view of an area.
For advice on selling or buying property, please contact Fine & Country St Neots on 0330 333 1060 or visit www.fineandcountry.com.
Fine & Country specialises in the sale and rental of prime residential properties. The company has offices in 300 locations around the world including in the UK, Cape Verde, Cyprus, Ireland, Germany, Mauritius, Morocco, Romania, The Channel Islands, USA, Dubai, Egypt, France, Namibia, Portugal, Spain, South Africa, West Africa, Russia, Australia and Hungary. Fine & Country has won Best Estate Agency Marketing and Best International Estate Agency Marketing seven times in the past 10 years at the International Property Awards.