Property hotspots are typically associated with a boom in buy-to-let barons or new out of town developments which will send land values soaring. In fact though, noticing something as simple as an influx of posh organic food stores and designer boutiques opening down the road can be a sure sign that youve made it when it comes to beating the masses to a little pot of mortgage gold.
An analysis of popular terms typed into the search engine Yell.com between March and May last year showed that it was possible to identify if your area was about to get a speedy property price makeover from something as small as the gossip down the pub.
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Finding out whos looking for an architect or a conveyancing solicitor, removal vans or surveyors, can be a good indication of the volume of people moving into an area before the industry experts have even picked up on it.
Yell.com found that in this particular period in 2006, residents of Norwich, Reading and Cheltenham were the three most likely to move after a massive number of people searched moving home and those in Reading, Nottingham and Manchester were all dabbling in DIY to improve on what they already had.
Alongside the classic signs such as new transport links, community developments and big companies moving into an adjacent area, an increasing level of disposable income is key. This means that if all your neighbours start getting loft conversions and building conservatories, or the Ferrari garages start springing up down the road, you are fully entitled to rub your hands with glee.
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ING Direct has identified ten indicators of high growth potential, including thickening telephone directories, increased parking restrictions, improved school results coupled with longer waiting lists and more planning application notices in the local paper.
It also pays to keep your eyes peeled on the way to work in the morning for signs of change although this itself might be hard as crowded roads and public transport are also signs to watch out for. An abundance of skips might not seem like the likely indicator of an upcoming hotspot, but an influx of the little yellow eyesores in a fairly random area mean there is some serious renovation work going on behind the scenes.
High crime rates are likely to put prospective buyers off, so if the local news hasnt been so comforting recently, the likelihood that you live in a hotspot wont be either. However in stark contrast, a surge in both traffic wardens and the number of people installing burglar alarms two things which might usually fill you with fear are even better clues that your area is on the up.
At the end of the day, house prices are still creeping up so if youve made a clever investment and managed to add value to your house, then youre already in a better position than a lot of other buyers; hot spot or not. The best thing to do is to keep a beady eye on the local market if your area gets a Starbucks then you know youre quids in for the future!
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