4. How to spot the right area. Sarah Beeny on Property Development
4. How to spot the right area. Sarah Beeny on Property Development (Image 4 of 10)
Every developer wants to be able to spot the next property hotspot and sell for a huge profit. Try not to get too hung up on this as no one knows for certain exactly where these hotspots are going to be. Often, what promises to be up-and-coming can take an age to become gentrified. Signs of an area becoming more popular include new bars, restaurants and shops or estate agents' offices, and skips outside houses, indicating they're being done up.
Save yourself a lot of time by looking out for businesses (such as the major supermarkets, high-street stores and coffee chains), that are planning to open up in the area. It's worth a visit to the library to check out the local press to find out about major developments on the cards or improved transport links.
Areas next to already popular locations are also worth looking at. Anyone who can't afford the desirable address will often move as close as they possibly can.
Target your market
It's not just about finding the right area, but locating the right property in that area, and different groups want different things from a place to live. The safe option is to try to make your property appeal to the broadest market.
Students (with parental help) want good-value, larger properties that are suitable for sharing.
First-time buyers want cheaper properties with small gardens, good transport links and shops.
Families want at least three bedrooms, two bathrooms, and a garden, parking and good storage.
Business professionals want en suites, high-spec interiors, parking and convenient restaurants and shops.
Viewing houses
1. View several houses to get a feel for whether something is right for you.
2. Don't just look at superficial detail, such as a pretty front door or good decoration. These can be easily (and cheaply) changed.
3. Make notes and ask permission from the owners to take photos.
4. Spot flaws such as big cracks in indoor or outside walls, which can be a sign of subsidence. Look out for wet rot (where water has been allowed to seep, which can lead to rotting timber) and dry rot (woodwork that looks crumbly or powdery). Rewiring can also be messy and expensive, so check the electrics.
4Homes Essentials
Mortgage Calculator
Property Search
UK Region Ratings
