How To Buy Property In The Right Location
Finding the right location when purchasing property is one among the most overused phrases when it comes to the development of a property. It is not usually required of you to purchase a property from a place which is deemed already great although it is a mistake most people commit.
What you need to do is spot a locality which is bound to rise then buy early in advance.
This technique is valuable when making a healthy profit is the result of taking a chance. Look for gentrification and growth areas where there are other developments plotted or ongoing.
Data from Zoopla and Land Registry is used to compile the buy-to-let index and ranks Welsh and English postcodes on the basis of key metrics of capital gains, rental yield, the growth of transaction volume and growth of rental price.
To come up with rental yield, you take the rent received annually for the property as a percentage of the current market price of the property.
Although commuter belt towns have remained as among the best of places to buy-let like Romford, Southend-On-Sea, Rochester and Luton, East of England markets are also on the raise enjoying the great growth of rental price with Norwich which has joined Ipswich among the top ten markets.
Best buy-to-let areas in 2018
From a report given by Lendinvest, Midlands has been singled out as the place to concentrate on for buy-to-let. The list features Leicester at number nine with Birmingham at 11which has climbed the listing due to strong rental market which has driven to the attractive yield.
Birmingham enjoys benefits of the professional service sector hence creating quite a substantial pool. Also, the ongoing construction of the HS2 rail has greatly benefited the town as it will speed up the time taken by train to get to London and also the significant regeneration the city has had.
Among the 2017 top climbers, Hull deserves to be mentioned specially. In 2016, Hull got itself position 99 but in 2017 the city ascended to position 6 as per the latest report.
From the research conducted, below are the best ten buy-to-let-areas in 2018:
Best buy-to-let areas for capital gains
Alongside property with high rental yield annually, investors as well would like to make some good profit when they would want to sell out the property. From the report, Colchester is leading with recorded capital gains of 11.96%.
However, even with the lead, boroughs and towns in London are ones known to do perfectly well. Ilford, Harrow and Southall have capital gains respectively of 8.82, 9.89 and 11.09 per cent.
Top areas for capital gains in the UK
- Colchester with 11.96%
- Hemel Hempstead with 10.27%
- Southall with 11.09%
- Harrow with 9.89%
- Slough with 10.19%
- Southend-On-Sea with 9.12%
- Luton with 9.16%
- Ipswich with 9.44%
- Hull with 8.46%
- Ilford with 8.82%
Best buy-to-let areas for growth of rental price
Birmingham and Leicester are ranked best for Midlands on this section coming in positions eight and two respectively in the list best-to-let areas as per growth in rental price.
Also, Wales has a place with Swansea and Cardiff also taking great choices when it comes to growth of rental price.
Top ten areas for the increase in rental price in the UK
- Leicester increase of 5.30%
- Manchester increase of 5.76%
- Luton increase of 5.26%
- Rochester increase of 5.12%
- Cardiff increase of 5.00%
- Brighton increase of 4.61%
- Swansea increase of 4.47%
- Birmingham increase of 4.29%
- Newcastle Upon Tyne increase of 4.18%
- Truro increase of 4.13%
Why does location matter?
But then, why is that location still matters so much? For beginners, it’s not easy to move home and its also expensive. Buying a home in a location termed good guarantees your long-term investment.
Estate agents sometimes suggest that you should purchase the worst house on the best block which requires some investment and TLC.Why is this so? They argue that purchasing such a home in the good neighbourhood will be easy to fix up while yielding the best return on capital. Also, it will be quite easy to sell it out later.
On the other hand, you can decide to purchase a home which requires no work on it. However, if the local area is plain and looking bad or have a bad reputation, selling such a property at some good price becomes very hard.
Therefore, if the location is as important, what are some of the key reasons? Below are 5 characteristics which you should consider while searching for a home to buy. In case you get all the five features, be sure of making some good home investment.
1. Safe neighbourhood
No one wants to live in a place associated with crimes. People want safety at home and are ready to give out extra cash for security purpose. A safe neighbourhood means that people will be able to walk around freely and also be out there and interact with one another. There are some communities still today, who do not feel the need to lock their doors as they know neighbours are always there for each other.
2. Good schools
Even if your kids are not going to school, being in a home close to schools is a buying consideration. Most of the buyers will be young families who are either buying first or second homes and therefore apart from considering good location, they will also consider good schools around. The better the district has better schools the higher the surrounding will be valued. It’s very important to remember that, whenever buying a home you should also have in mind the future buyer and figure yourself as a future seller. Who would you sell to? What will be there preferences?
3. Convenient access to restaurants, shops and popular places
Who does not want to be close to commercial districts termed best in the region? A better location is measured in terms of closeness to the hubbub of a given town or the city’s best parts. With such locations, the buyers are also ready to give more. Communities around the beach value property more as per closeness to the beach.
4. Water views and access
Despite the town in question, people will be ready to pay more for a home located next to water or with a great view. Try putting your home on a hill or waterway and you can be sure of a great location.
5. Access to the motorway and public transit
In big cities, homes far from the subway, bus or other mass transit types are valued less. Good location simply means being near to and having easy access to public means of transportation. Be it train or bus. There are some towns you cannot commute using public transport and hence the easy access to a motorway guarantees the location to be highly thought of. If you need to drive for 20 minutes plus to get to the motorway this makes a location harder to sell.