Everyone is looking for ways to make a lot of extra cash nowadays. One popular method is property development. It is now possible for a homeowner to make millions thanks to the rise in house prices, depending on what property they own. The trick to this process is finding the right area and type of property to invest in - one that is likely to have a great turnover in the long run.
According to a report from Property Rich List, there are now over 10,000 streets in the UK that have an average property price of over £1,000,000. As well as this, the report also found that over 500,000 homeowners became property millionaires. The vast majority of these properties are in, and surrounding, the capital, an area showing a value increase of 13% in the past year.
eMoov.co.uk suggests that in 2048, the average house property in these thriving areas will be just under £3.4 million, requiring a deposit of around £678,000. So how do we look out for the best kinds of property and locations to invest in?
The following 4 steps show you how to research and select property locations that are likely to make you rich!
Look out for Large Developments
It is not uncommon for major developments to have to pay a local development fee when building large structures in local areas. Take the Olympic Park for example, they had to pay a significant fee to the surrounding area to enable them to continue with their plans. This was immediately invested into the renovation of the local area, thus increasing the affluence and increasing property prices.
The same goes not just for large sporting structures, but also for any form of new large developments. For example, when Google decided to buy offices in their UK locations, this brought in a wealth of affluent employees needing property in nearby locations, consequently adding to the renovation of the surrounding areas.
Buying properties in areas that are likely to be developed is a huge factor to keep an eye on. If you can purchase a property in an area that is likely to undergo a large development, such as Wembley stadium, it is more than likely your new home is going to soar in price in the coming years.
Research into Major Supermarkets
I know you’re probably thinking, what on earth does a supermarket have to do with buying property? Well, supermarkets such as Tesco, Waitrose, Morrisons and Sainsbury’s have a wealth of data regarding the demographics of residents in certain areas. They use this information before opening any new stores in that area.
If you notice any plans for these particular supermarkets to make the move into new areas, it is likely that they have evaluated a certain rise in the demographic or prosperity of that particular area. From this, you should be able to take away that this area is very likely to soar in terms of profitability, and therefore it would be a sound business decision to buy into this location before the property prices rocket.
Coffee shops such as Starbucks and Costa also tend to signify whether or not a location is going to thrive in the near future. It is not uncommon for retailers to follow coffee chains, therefore the increase in retail development is likely to make an impression on the prosperity of the surrounding area.
Check out the Location’s Public Transport
Sometimes it is not always possible to find the exact property in the desired location. So a good thing to look out for is nearby locations with good public transport between areas. For example, in terms of the new Olympic Park, easily accessible locations nearby are likely to thrive due to the popularity of the new development.
Also, due to the increased tourism surrounding new developments, the likelihood of future developments in nearby areas is very likely to rise, thus increasing the prosperity of local properties. Likewise, look out for nearby car or bike hire/share schemes in your desired location, as these have become very popular within modern society.
Look into Neighbouring Locations
Similar to the previous point, it is sometimes more beneficial to invest into neighbouring areas of thriving developments. Trends tend to either die out or spread. In terms of new developments, once one city has become renovated, it is very possible that the neighbouring locations will follow.
Take Vauxhall as an example; when they moved into London, the property prices of their specific location drastically increased. Not soon after, properties in Camberwell, Dulwich, Peckham and many more south London areas also saw a steady increase in property price.
So there you have it, 4 great ways to find a property that is likely to thrive in the nearby future and make you a lot of money.
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