How to predict a property hotspot
Monday, 13 June 2011 4:03 PM
Have you ever felt like you’ve missed the property boat or experienced that sneaking suspicion that everyone else knew about a trendy area way before you did? Perhaps it’s just that their property hotspot radars are more finely tuned than yours. Read on to find out how you can predict property hotspots accurately – and ahead of the crowd.
Why worry about property hotspots?
The idea is that, if you buy a property in an up-and-coming area while it remains undiscovered and off the national radar, the house prices will be low. Then, as the area matures and becomes popular, the house prices will rise. At least, that’s what’s supposed to happen.
It’s a speculative bet that should be approached with caution: factors in the wider environment, like a recession, unemployment and rent prices, can all affect the property market, whether it’s a hotspot or not.
Timing is key
Starbucks, Pizza Express, independent deli? If your high street already has these shops then it’s already a hotspot and you’re too late. You need to look out for areas that haven’t been ‘gentrified’. Try to invest just when the area is on the cusp of becoming popular in order to gain maximum advantage. Don't buy too early though: the neighbourhood shouldn’t be totally unattractive, it's got to have something going for it!
What to monitor
Transport links: Keep tabs on planned improvements and additions to rail and tube lines, enhancements to motorways and details of new airports. Improved transport links benefit commuters and frequent travellers but they also create jobs, and workers will need somewhere to live.
Culture: Listen out for plans for new art galleries, exhibition spaces, music venues, theatres etc. Having culture in the community often makes a neighbourhood more convivial.
Education news: Ever heard of Ofsted? It’s an independent body that inspects schools’ standards and grades them from Excellent to Poor. Parents flock to areas where schools have good Ofsted reports, so if a school transforms itself from Poor to Excellent, take note: the Yummy Mummies will follow.
Retail: It’s about the Pizza Expresses, not the Pizza Huts. The calibre of shops and restaurants define an area’s desirability, so bookmark websites like Estates Gazette, Retail Week and The Grocer to see where the more salubrious brands are opening branches. As well as Pizza Express, names to watch out for include Waitrose, House of Fraser and Monsoon.
New homes: If a house-builder is planning 90 apartments in a neighbourhood, they obviously see potential there. However, the moment the hoardings go up, it’s too late. Monitor planning applications for new developments via local councils or websites like Property Week.
How to spot a property hotspot at a glance
• Monitor planning applications for new homes and new shops like Waitrose
• Find out where new and improved transport links are being planned
• Keep tabs on schools that improve in their Ofsted inspections
• Look for areas that are building strong community links through new cultural facilities
• Don’t aim for areas where prices have started to rise already
Article supplied by Cinnamon Communications, a property PR and marketing specialist. See CinnamonCommunications.com for more details.
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