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Finding a property that will grow in value is a dream scenario for many homeowners. They want houses that continue to drive value and build their wealth.
But if you’ve just finished university and are starting a job, how are you supposed to find somewhere like this?
Here’s some tips and tricks to get you started:
Check Which Neighborhoods Are At Risk Of Gentrifying
Start by doing your research and checking which neighborhoods are at risk of gentrifying. You want to be in a location that’s inexpensive now, but will grow in price in the future because of increasing demand.
For example, if the area is close to where professionals work, that increases the likelihood of gentrification. Gentrification is also more likely close to other gentrified areas if the existing ones are now becoming unaffordable.
Research Market Trends
You also want to explore market trends to see whether property price appreciation is likely. Looking at the raw figures often tells you what you can expect returns to be going forward.
Researching things like urban development plans is also a good idea. If your house is going to be close to a train station or shopping district in the future, that can also increase its value.
Expert sites like https://www.estateagencyedinburgh.co.uk/ can provide more information on up-and-coming areas and which parts of the property market are likely to thrive in the near future. They aren’t crystal balls, but they can often provide the best advice based on experience.
Buy Below Market Value
You also want to buy below the market value if you can. Yes, that’s easier said than done, but it also makes it more likely the property will grow in value quickly.
Buying below the market value usually means purchasing a fixer-upper or a distressed asset. Both of these properties can be found at auction, allowing you to control how much you pay depending on the profit you’re likely to make.
If you can go on internet forums about property and look for cheap homes there, you can also find deals. People wanting to off-load quickly will often reach out on social media or the internet.
Consider Properties Ripe For Expansion
Another lesser-known strategy for buying a property likely to rise significantly in price in the future is to find somewhere ripe for expansion. Small houses on large pieces of land can be added to and made exceptional, often selling for many multiples the price of the building cost.
This approach requires more work because you need to make additions, like gyms and basements. But once you put them in place, the results can be tremendous.
Consider School Districts
Finally, you want to think about school districts in the local area when searching for a property that will rise in value, especially if purchasing a family home according to https://www.thisismoney.co.uk/. Many parents will pay significantly more if they think it will allow them to get their children the best possible education. Therefore, look for schools with great inspection reports and locate close to these.
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