Are you a new property investor looking to get started in the industry? One of the most important things you'll need to do is conduct area research. In this blog post, we'll discuss why area research is crucial to successful property investing and how you can get started.
Table of Contents
What is Area Research?
Area research is the process of gathering information about a specific location, such as a neighbourhood or city. This can include demographic data, crime rates, employment statistics, school ratings, and more. By conducting area research, you can gain valuable insights into the local property market and make informed investment decisions.
Why is Area Research Important?
Area research is essential for property investors for several reasons. Firstly, it can help you identify areas with high growth potential and avoid those with declining property values. It can also help you determine rental demand and potential rental yields, allowing you to make informed decisions about the properties you invest in.
Area Research allows you to make informed decisions about the properties you invest in.
How to Conduct Area Research?
So, how do you conduct area research? There are several ways to gather information, including online research, visiting local libraries, and speaking with real estate agents. Online resources such as census data, crime mapping tools, and property portals can provide valuable information about an area.
Here are some tips on how to conduct effective area research for property investing:
Start with the Big Picture
Narrow Down Your Search
Look at Property Prices
Check Rental Yields
Research Local Amenities and Transport Links
1. Start with the Big Picture
Before delving into the details, it's important to have a good understanding of the broader market trends. Look at national and regional property data to get a sense of how the market is performing overall.
2. Narrow Down Your Search
Once you have an idea of which regions or areas are performing well, you can narrow down your search to specific towns or cities. Look for areas that are experiencing growth or regeneration, or that have good transport links to major employment centres.
3. Look at Property Prices
Check out property prices in the areas you are interested in, and compare them to the wider market trends. This will give you an idea of whether the area is over or underpriced, and whether there is potential for capital growth.
4. Check Rental Yields
If you are planning to rent out the property, you'll need to consider the rental yield. Look at the average rental prices in the area, and compare them to the property prices. You want to aim for a rental yield of at least 5% to make the investment worthwhile. It is also a good idea to check the ROI of the rental units.
5. Research Local Amenities and Transport Links
Consider what amenities are available in the local area. Are there good schools, shopping centres, and transport links? These factors can all affect the desirability of the property and its potential for capital growth.
Introducing Property Store's Area Research Module
If you're a new property investor, conducting area research can be a daunting task. But with the help of Property Store, you can access our Area Research Module to get valuable insights into potential investment locations. Even if you only have a postcode, our module can give you an idea of average house prices and rent in the area, giving you a good starting point for further research. Trust Property Store to provide you with the tools you need to succeed in property investing.
In conclusion, area research is crucial to successful property investing. By gathering information about a location, you can make informed investment decisions and maximize your returns. If you're a new property investor looking to get started, consider using Property Store's Area Research Module to make the process easier.
Ready to get started with area research? Sign up today for our 7-day free trial and see the benefits for yourself. We're so confident you'll love our Area Research Module that we offer a 30-day money-back guarantee, no questions asked. Don't wait - start building your portfolio with Property Store today!
Want to see more? Head over to our features page where we recorded a live demo that you can watch to see Property Store in action.
Got a question? Check out our Frequently Asked Questions Page for answers to common concerns or you can contact us here.