While the fishing community has long been famous for its tales of “the one that got away”, there are doubtless many property investors looking at current property hotspots and thinking “I should have seen that coming.” In an attempt to prevent investors from having to think that in future, here are some tips on how to spot up and coming buy-to-let property hotspots.
Start with the demographics
It’s no secret that student towns are obvious buy-to-let property hotspots, but what may be less obvious is that after students graduate and turn into young professionals they still need somewhere to live. Initially they will probably be renters, but then they will want starter flats and, after that, family homes.
Even though their choice of post-study accommodation may be driven more by economics and practicality than by desirability, there is a good chance that, little by little, the area will become home and they will want to stay in or near it, especially if there is a population of other young adults at a similar life stage to keep them company.
Look at the local economics
As a rule of thumb, up-and-coming areas will tend to have a combination of local businesses and the sorts of major brands which could make their home anywhere (like supermarkets). What they will not yet have are the better-known boutique brands and the major leisure and hospitality chains, such as the big coffee shops.
They will, however, have independent, local, leisure and hospitality outlets because people in the vicinity will have picked up on the demand for them and will be aiming to pick up loyal customers before the inevitable arrival of the larger brands.
Examine the amenities
If you find yourself surprised by just how much a local area has to offer given the price of property nearby, then there’s a very good chance you’ve found a place with great potential as a buy-to-let hotspot. This situation indicates that the local population has a high enough income to expect investment from the local council and/or private industry.
These amenities will tend to be a combination of independent local companies and the biggest of the major players who have the funds to stake an early claim on an area with potential again to build customer loyalty before major competition arrives.
Scan the news for infrastructure developments
Keep an eye on the news for any infrastructure developments which could help to make an area more attractive. In some cases, these will literally be headline national news (such as the building of Crossrail), but in many cases you will need to watch the local media (or the specialist property press) to be informed of smaller-scale developments which could have an impact on local property prices.
In particular, you’re looking for anything which either brings more employment to a local area or which makes it easier to travel to employment opportunities in other areas. With regards to the latter, one strategy to employ is to watch places where existing transport facilities terminate as it is usually more likely that existing facilities will be extended than that new ones will be built from scratch.
Author Bio
Hopwood House are a specialist property investment company based in Manchester, with a wide range of buy-to-let properties for sale in major cities across the UK including Liverpool, Manchester, Birmingham and Sheffield.
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Daniel Peacock