When you are trying to identify the right locality in which to purchase a buy to let property, it is important to consider all your options. One of the things you should be researching is whether there are any regeneration projects in the pipeline. This might not be at the top of your list, but taking a look at the reasons for doing so should persuade you that this would be a good move.
Impact on property values
These projects are often planned in areas which have had a tough time of it in recent years. This will generally mean that the current housing market is a little depressed. However, once the regeneration schemes get going this could change, and the price you paid could start to look like very good value for money. To get a good idea of the type of price rise you could expect you should look at neighbouring areas which have undergone similar regeneration projects and assess the impact.
The creation of more jobs means more money in the area, and that is good news for anyone who owns a buy to let property in the area. Improvements will develop gradually, but something like the opening of a big new factory will give the whole place an immediate boost. Even better is the new company which employs specialised and well paid workers.
Attract More People to the Area
One of the best things about a regeneration project in your property’s area is that it will attract more people wishing to live there. It doesn’t matter whether they want to rent or to buy; ultimately you will benefit. The arrival of newcomers will enhance that feel good factor and make it an attractive move for new residents.
As the area starts to look up, you should find that your rental return will increase. This is when you should really see the benefit of your earlier investment and your annual returns should start to rise.
Use this tool
Rescue my Pension produces a report for every investment we promote called the Big 50 Report. Regeneration projects are extensively covered so it makes your research easier to undertake.
If you would like to see an example report or if you have any questions call us on 0207 148 3164 or request a call back.