Buying an investment property is very different from purchasing a new home. With an investment, you want to focus on making money and finding a slice of real estate that has the potential to appreciate in value. If you’re on the hunt for your next acquisition, here are some positive signs to look out for.
Increasing rental prices
If you plan to buy to let, it’s critical to research the local rental market and to look for properties in areas where prices are rising and the demand for homes to lease is increasing. The higher the demand, the better the rental value. Once you have a search area in mind, contact local agents to organise viewings, look at rental prices in the locations that interest you and use data to ascertain how buoyant the market is.
Luxury homes and aesthetically-pleasing properties
Whether you’re searching for an apartment or a house to rent, or you’re keen to buy and then sell, it’s a good idea to look at the area and try and find properties in blocks or on streets that look smart and appealing. Many buyers value curb appeal and they want to live in neighbourhoods that look safe and inviting. With a flat, look for developments with luxury apartments if you’re aiming to attract affluent buyers and new blocks close to trendy bars, independent boutiques and cafes for young professionals. If you’re hunting for a house to sell, and you’re aiming to attract families, tree-lined streets, cul-de-sacs and quiet roads close to good schools and transport links will tick boxes on many buyer wish-lists.
Development and investment
Investors will often target areas that are already sought-after, but if you cannot afford to buy in an exclusive area or an established hot spot, it’s beneficial to look for properties in up and coming parts of the city or suburbs that are popular with commuters or families. Signs of investment, development and regeneration often trigger excitement in investors who are looking to make money, particularly in the long-term. Look out for signs of building, for example, new housing developments and offices, new businesses like cafes, restaurants and shops, and improved transport links.
Increased popularity
The property market is very interesting, and sometimes, places that have previously been overlooked by buyers and investors suddenly become hot prospects. This is often the case in big cities, especially in areas that have been regenerated and revamped. Up and coming locations become trendy, and the demand for properties in these parts of the town or city increases, pushing prices up. If you can get your hands on an apartment or a house at a time when the demand is still rising, you should generate a decent monthly income or make a substantial profit if you sell at the right time.
Investing in property can be incredibly lucrative, but you have to choose the right property and sell or rent at the right time. Look out for these signs next time you’re keen to add to your portfolio.
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