You don’t need to be a seasoned investor to care about a property’s financial value.
All types of buyers can benefit from knowing if a house is likely to sell for more than its original purchase price. Whether you’re seeking your first home or expanding your collection of rentals, let’s consider how to spot a property with strong growth potential.
Look for a location with appeal
The local economy
An area with growing industries and jobs will attract more people – and therefore command higher house prices. Consider the big employers in the local town or city. Are they likely to hire young professionals? Couples with children? Think about the level of demand as well as the kind of homes people may want.
Popular amenities
Explore the nearby amenities, such as parks and green spaces, supermarkets, sports centres and schools. Being in the catchment area of a sought-after school is particularly attractive to buyers, with people willing to pay 15% more for such properties. Take a look at the local high street or shopping area, too.
Plans for infrastructure
Are there any changes on the horizon? The local authority’s website can give you information about planned developments and investments that might affect property values. For example, a new housing estate or improved roads and transport links might be underway.
Consider other properties on the street
This research can be gold dust when working out what’s possible for a property you’ve got your eye on, especially if the neighbouring houses are of a similar size and style. Here are three areas to think about:
- Planning permission – have other properties had extensions or loft conversions? If the answer is yes, you might get permission for your own designs.
- Changes in property value – how have their values changed and over what period? Compare any increase in property value with that of houses on other roads to spot the biggest potential for growth.
- Inspiration – how have the owners improved their properties? By looking at online property listings, you can gather some ideas.
Study the potential of the property itself
Finally, let’s consider the property and how to increase its value. Thoroughly research your options and, if in doubt, get professional advice from an estate agent or another property expert.
Is there scope to modernise and improve?
If a house has many issues, a good place to focus is the kitchen. This space often makes a big impression on buyers who appreciate new fittings and a contemporary feel.
Look for wins, both big and small. For example, a property might be ripe for an extension into the garden to create an open-plan kitchen and dining area. Equally, you might just need a fresh layer of paint and varnish to brighten a dingy downstairs.
When totting up the numbers, get several quotes for the labour and materials to find the best deal.
Can you improve the energy rating?
With national heating and utility bills in flux, there’s real value in increasing a property’s energy efficiency. You might, for example:
- Install a more modern boiler
- Upgrade the heating system
- Insulate the low and cavity walls
Improve the energy rating and you can lower the monthly bills – and boost the property value.Get professional insights
The fastest way to learn about both an area and specific properties is to speak with an experienced estate agent who can share advice on your options. Get in touch with your local Winkworth office today and embark on your next venture.
