If you are looking for a good investment in property, the best advice is to look at areas which are likely to develop and thrive in the coming years. Household demographics don’t remain static – an area that once seemed to be run down and lacking in potential could begin to develop as prosperity begins to increase.
The key indicators are often difficult to pin down and it can seem a bit of lottery when you’re trying to choose the right location, even for those with experience. Here are just some of the things you should be looking for:
- Check locations around a prosperous area that aren’t doing so well and where house prices are relatively low. This area could end up benefiting from the ripple effect caused by its richer neighbours. A little further down the line you could well find house prices rising.
- Another big indication is what the local area provides to residents. If the property you are looking at is close to local amenities such as shopping and transport links it may gain in value again as prosperity increases.
- Spotting the signs of gentrification is a way to assess whether a property is going to increase in value. This process has been given a bad reputation in some places like London in recent years where there have been protests by local residents. What it means is that a place that was once deemed run down is starting to change demographically. Look for areas where young, aspirational people are starting to move in because of the cheaper housing.
- It’s not all about finding a run-down area and pinning your hopes on its transformation. Supply and demand is a big issue as well. Here you need to find an area that has low supply but the potential for high demand. That could be a location where new builds are no longer being put up or where rental demand is particularly high.
In the North East, there are plenty of cities and areas where big changes are starting to happen. In cities like Newcastle as well as areas such as South Tyneside there are a number of locations that are predicted to see healthy house price rises in the coming years. Part of this is being driven by greater investment and businesses, particularly high tech, moving into the area, attracted by lower rates and local incentives.
Big cities such as Newcastle also have strong student populations which make buy to let investments more favourable, despite the recent hike in stamp duty for second homes. This in turn can change the demographics in areas such as these, encouraging home buyers to move in and increasing the sale value of properties.
Making sure that you look at the area where you intend to buy a property is now just as important as the price you expect to pay. Getting the expert advice of an estate agent who knows the region well and can help you make the right choices is also vital. Pick a prime location and you could expect a significant rise in the price of your property over the next five to ten years as things begin to develop.
For great advice, service and the opportunity to only pay for the estate agent services you need to sell your North East Home contact Distrikt Online today to get moving!