Learn what POA (Price on Application) means in UK property listings, why it's used, and how to find out the true asking price.
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In a press release published by the Land Registry Office, data show that prices of property in the UK climbed last year to an astonishing nationwide average of 13.2%. In some areas, the increase was as high as 18%.
If you are thinking of placing an investment in properties, now is a great time to do so. You just have to make sure that you choose the right location in able to maximize your profits. This is what we will be discussing in today’s blog.
Appreciation is the rate of increase in the market value of your property over a certain period. This increase in value is dependent on several factors including urban development, population, commerce, economic trend, and so on.
Value appreciation is a key variable in any property investment as this will dictate your profits if you decide to resell.
Historically, properties in the UK have been steadily increasing in price. According to recent data, the country has seen an average yearly appreciation rate of 9.3% for the past 50 years.
However, this can vary widely depending on location. Some areas may only see a rise of 5% while some can soar to more than 20%.
Assessing a property’s appreciation could be tricky because you have to assess based on futuristic scenarios that you cannot yet see. There is no specific formula to predict it, but there are indicators that you can watch out for.
If you see any roads, bridges, railways, and other construction projects being built in the area, then these are very good signs. Such infrastructures make the place accessible and this encourages interest in utilizing the land.
Be observant of the local economy too. When new businesses are opening in the area such as shops, restaurants, cafes, hotels, it means that that the locality has a growing, healthy economy. In turn, this is certain to increase the value of land.
Look for a property near this commercial hotspot where the developments have yet to reach. There is a good chance of finding one that is still priced low but will have a good potential to increase in value in the near future.
Schools and universities always attract businesses and other commercial activities. You can also expect a demand for residential lease specially from families with youngsters or professionals intending to take a graduate course. A property rental could therefore be an ideal investment.
Is there a local airport being built in the area? Or perhaps a freeway or a new train station? If yes, then it likely means that the locality is growing and the government is investing in making the area more accessible.
Did you learn something new?
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