If there’s one talent that can drastically improve the chances of anyone looking to develop or flip properties at a profit, then learning to choose the right area has to be number one. But there’s a big difference between choosing an area that already has all the hallmarks of a promising place to live and choosing one that’s on its way there. Here, we’re going to look at why the latter will always net you a bigger win in the end.
Demand will increase
If you want a quick investment, then choosing areas that are high in demand is the best way to make sure that happens. To many, this might mean choosing an area that’s close to high-value establishments, such as retail centres, schools, colleges, and the like. But you can spot the signs of neighbourhoods on their way to the same kind of popularity, too. A new road making an old area more accessible. Existing adjacency to areas that are already high-in-demand. Declining crime rates and vacancy rates. Do your research on the areas of the city or town you want to invest in and see which areas fit some of these key criteria. Especially if you’re a landlord, you could be guaranteed a reliable, steady flow of tenants.
Its value could soar exponentially
When you’re in the business of development, you might think that the changes you make to the home are the most valuable. However, the virtue of being in an area perceived as on the rise could be more valuable than any renovations you might care to make. One feature that you might not ordinarily expect to lead to a price increase, for instance, is the growth of a local art scene or a growing focus on historic architecture near the property. Institutions like schools, public transport, and hospitals can also add a lot of value to a home. If any of these develop in your area, then that’s a good reason to justify a price hike on the property.
It could be part of a much bigger plan
This isn’t really something you can plan for, but it is a way you could benefit from buying a house in a developing area. It only works if you buy for well under market value, but a compulsory purchase order could see you getting a guaranteed sale. Your compulsory purchase compensation will cover, at least, the full market value of the home, which could be a significant profit. However, people have held out against CPOs in the past. One woman got her original offer quadrupled by holding out against the purchase. These compulsory purchases can’t be predicted the vast majority of the time, but they often happen in areas developing to include new retail or community centres in a neighbourhood.
If you can learn to spot the up-and-coming areas before anyone else, you will make a killing in property, that much is guaranteed. So, keep an eye out for any news of planned developments, new businesses opening, and new community facilities. Follow those and you’ll strike gold eventually.