‘Record price rises’ and ‘get in before the rush’ are headlines you’ll often see about an area, in real estate and the media.
Predicting the next property hotspot is every property investor’s dream. In the past, property hotspots were mainly inner suburbs, slightly run down but very close to their more desirable and trendy, and hence more expensive neighbours.
However now other niche ‘property hot spots’ are popping up, and some are in the most unlikely of areas, including out of town; 15 or even 10 years ago, no-one would’ve ever predicted some areas as being a property hotspot. On the other hand, some areas that were predicted to take off have remained stagnant.
This is why we believe, property hotspots should only be used as a guide. Ultimately, no matter what you read on the internet, in the magazines and newspapers, you need to do your homework and decide for yourself what’s hot and what’s not.
It’s no good stretching yourself completely on the promise of a property hotspot, only for the area not to perform and for you to be disappointed with your return.
Here are a few tips of what to look for when researching the ‘next property hotspot’:
Plans for the area
Check to see what’s in the pipeline for the area. What’s the local council got planned – are there plans for shopping centres and other services? What’s there in the way of entertainment and amenities? Is the area well serviced by public transport, or are there plans for road or rail upgrades? If money is being pumped into an area to make it a desirable place to live, the chances are, property prices will increase more over a period of time.
What else should I look for?
Look a bit deeper. Other key indicators an area is on the rise is whether the area is growing faster and household incomes are increasing faster than inflation. Look also at the area’s rental vacancy rates – if an area’s on the up, people want to live there and vacancy rates will be low.
Where to find the information
There are now a myriad of places to find what you’re looking for – starting with searches on the internet, online reports and magazines and newspaper articles. We also suggest driving round an area at different times of the day so you can really get a feel for the place and look for signs of whether it’s a place on the up – or a place on the down. Another good place to visit is the local real estate office!
Whenever you’re looking to invest, look for the basics. People need to eat, they need to work, and they need the transport to get to work. If an area has good amenities, is safe and pleasant to live in, and has a long history of capital growth, check it out as well as the latest hotspot.
So if you’re just interested in finding out more about the local suburbs, we’d love to help you. Having been in business in the area for over 40 years, we are one of Newcastle’s longest established real estate offices, so give us a call on 02 4954 8833, send us an email to firstname.lastname@example.org, check out our Facebook page, or pop into our Cardiff office for a chat.