How to Predict Property Hot Spots
When you plan to buy a property, there are many questions that need to addressed is order to assess if a property investment is in an area that will be a property hot spot in the coming future. The real question to ask yourself before buying property is “How do I know where to buy property” and “How do I know which location will bring a good return on your property investment?” You need a way of determining whether buying in one location is better to the next.
Although the property market has generally been on the rise recently, there are some areas that have a significant upsurge in values, when compared to others. The values of such areas rise out of nowhere and spiral upwards, leaving a potential investor wishing they had bought in the area
In order to identify such areas that have the potential to rise, it is important to carry out a good deal of research. The research will help you identify such areas by asking a set of generally common sense questions. The investor needs to look at the various drivers in an area that normally affect the upsurge of a property.
So what are these drivers? Well these are general development factors that are helping the area to develop its infrastructure and are mostly common factors such as:
Improved transport system - offering a better network of transportation to other areas;
Development of businesses- bringing people into the area thus driving up demand for housing and hence property prices
Development of world class facilities – in an area raising the demand for employment as well as the profile of the area.
The current house values – lower than average house prices will means a larger potential for growth.
Below average house price ratio - compared to earning
An interesting recent fact was revealed to suggest that insurance companies are using the sales of electronics such as plasma TVs, ipods and broadband connections to predict areas as property hot spots. One major insurer identified people who had taken city breaks and a collection of air miles as hotspots.
In general an investor is looking for areas where the demand will outstrip supply