Having worked for the company since 2017, Lois Baggott is the Business Development Manager at GRE Assets. She leads the acquisitions department, sourcing land and investment opportunities for GRE Assets. Lois is also heavily involved in marketing, ensuring the company profile is raised.
Lois knows first-hand the importance of staying up to date with what is happening in the property market, as well as conducting the necessary research into new locations. Below, she shares her three tips for understanding the property market and how to identify an investment location.
Tip 1: Understand demand and your target market
Before investing in a new location, it’s important to identify areas with strong demand in order to achieve the desired returns. Good things to look out for are a lack of supply or locations that are in constant demand regardless of the wider property landscape, such as being located near to mainline train stations.
You will need to take this a step further and think about who your target market will be, based on the type of property/ies you are looking to invest in. For instance, is there a nearby main employment area like a hospital or university that would drive rental demand? You’ll also need to consider features and facilities your target market may require for example, a home office.
Tip 2: Market research is important
Conducting market research is an early but very important step when investing in property. Taking a look at current listings for similar types of property will give you an idea of how long properties are staying on the market and price performance. This will help you make some estimates into how well the investment opportunity would perform if you went ahead. It is also helpful to speak to local estate agents in the area you’re looking to invest in and ask their advice on the market and potential sales/rental values that are being achieved.
If you’re considering a Build to Rent investment you will need to identify the yield you’re wanting to achieve and target the areas and property types that provide that level of yield. Finally, it is a good idea to research current and upcoming regeneration projects in the area as new developments are good indicators of future capital growth.
Tip 3: Stay up to date on industry trends
In order to make wise investment decisions, it is necessary to be aware of what is happening in the wider property market as this will have an impact on your timeline and your target market. For instance, when a new government initiative like the stamp duty holiday is announced, it caused a big surge in activity within the market.
Reading research reports by industry organisations will help you stay up to date. Reports to keep a look out for include the RICS Residential Market Survey, Savills UK Housing Market Update and Rightmove’s House Price Index. Local property news is also useful in getting a greater understanding of the local market and wider development projects in the area.
Connect with Lois on LinkedIn, here.
Date: 25 January 2022