As an investor, how do you spot the next big thing? – The next big area! A goldmine, a hotspot, a new kid on the block. How do you get into the action early?
All good questions. And whilst you can never be sure what’s going to happen in an area in the long term, there are things to look out for to spot a potential winner.
Let’s see how you can increase your chances of success…
Look at its:
They all matter to varying degrees. And whilst some areas might seem much of a muchness in this regard, you can never have too much knowledge.
Look at it from all angles. Is this a place your target tenants want to live? Is there a hospital? Is there a large incoming workforce? Is there a university and therefore students? What are the transport links like? Is there a good selection of things to do and local amenities?
Check the crime rate too. If you’re investing in a less desirable area that yields strong returns and you’re used to managing those kinds of properties then this may be less of a concern, but if you’re looking to attract professional tenants or families, pay the crime figures a bit more attention.
Is there a regeneration planned for part of the area? How likely are you to get any planning permission that you need?
Arrange a meeting with a relevant person from the local authority if you can. Look at directives issued and approved planning permissions. You can usually find this sort of information through Google. Just make sure the information you find is recent and accurate.
As an investor, I’m sure you do your numbers when looking at every purchase, but you need to do this even more carefully if you’re considering investing in a new area. Especially if it’s an area that’s a bit of a risk, one that you’re hoping will come good in the future.
Consider your tenants position too. Can they afford to live in the area? Check the affordability of council tax through their eyes and the general cost of living.
It seems obvious, but if it’s logistically practical, visit the area. Visit it at different times of the day and on different days of the week to get an overall feel for the place.
What’s it like at school times and rush hour? Traffic is a growing problem in small towns so pay it some attention, especially if you are targeting tenants with children. If you are, be sure to find out more about the local schools too. Is it going to be important to make sure your investment properties are in good catchment areas?
Problems might become visible that weren’t there before. New opportunities might present themselves. What is the area lacking that you can provide through property? What does it need more of that you can add? Are there any property types saturating the market and driving down value that are best avoided?
Go to places where experts are, such as networking events.
Is there a local Property Investors Network (PIN) meeting? Is there local property training academies? Look on LinkedIn. Call us on 01282 570752, specifically if you want an introduction to investing in a known hotspot up north – Burnley.
The most valuable thing you can do is connect with people who have been there and done it in the area. This will provide you with insight you just can’t get through research.
There’s residual benefits too. Networking isn’t necessarily about who’s in the room, it’s about who those people in the room can introduce you to.
Make contacts. Make friends. Make new associates.
Have you made us your acquaintance yet…?
Property Deal Store is the place that connects property sourcers to property investors. Sourcers negotiate and build deals before publishing them on the site for investors to purchase.
This is the platform the industry has been crying out for and we have created this website with a clear mission in mind: To be the go-to platform for investors to build a successful property portfolio whilst facilitating the development of a successful career in property sourcing for our sourcers.
You can check out all of our latest deals here and sign up for free today so that we can keep you up to date as new deals are added.
If you have any questions or simply want to find out more, call us on 01282 711561 or email firstname.lastname@example.org.
-Janice Minihan, director and co-founder of Property Deal Store