Finding an up and coming neighborhood for real estate investing is like trying to buy a stock like Amazon before it takes off. However in this blog post about UK property investing, I wanted to share some quick tips myself and my JV partners look for when trying to determine Up and Coming Neighborhoods For Property Investment.
Major Developments and New Businesses Opening
We decided to buy a terraced house and convert it to a HMO for Social housing. Across the street was being built a multi million GBP project of build to rent flats. Myself and JV partners simply thought if the area was good enough for them to put millions for build to rent, a HMO would be perfect. More so this is a fantastic area of Worsely.
2. Homes Being Renovated or Built
We look for all sorts of things to look for when evaluating the quality of a neighborhood, such as privacy fences versus chain link fences, whether the streets are clean, and even if people are out jogging or walking their pets at night. Would I live there? I like seeing other refurbishers working with scaffolding in the area…or even new houses being built. Conversely if there are lots of vacant, boarded up, or burnt out buildings we run.
3. For Rent and For Sale Signs
Changing neineighborhoods usually have low vacancy and an abundance of demand rather than supply. We seem to get outbid in areas like these….ie Salford in Manchester. A lot of “For Rent” or “For Sale” signs is big red flag
4. Check Rightmove or Zoopla for Clues
We look at listings all day long and have alerts set for areas myself and JV partners like to buy. Look how long properties are on the market in areas you are interested in…
- Average Days on Market
- Average or Median Sales Price
- Average or Median Price/Square Foot
- Total Sales
For instance we were offered a 4 bed HMO which we can convert into a 5 bed HMO. It has been on the market for over a year. We called the vendor directly, and he told me he had 2 sales fall through. We checked the immediate area and studied the above. What is interesting, properties sell quick…yet this property has not moved. Simple thought, it must need alot of work. We plan on viewing it today or tomorrow. This is the other thing, do not wait, move and do alot of viewings…
5. Public Information
There is always information out there. Council websites show all building regs applied for and planning permissions. Crime stats can be found on the internet
6.Talk to People in the immediate area
I always ask this question to people in the area
I want to buy my daughter a flat or I want my daughter to rent in XYZ place…what do you think?
I smooze,I try to get a feel for a neighborhood and I talk to the people who have lived there a long time ( look for the grey hairs) . Has the neighborhood improved or gotten worse? Are people generally moving in or out? Can kids walk around freely? Can my daughter walk her dog at night?
I like to stumble upon people who just recently moved into that particular neighborhood, they will give me the low down of the area & might tell me something about the growth of that area as well.
There is nothing perfect, however through hard work one can determine
Up and Coming Neighborhoods For Property Investment