It’s very common for remote investors to search for property hot spots and other places where there is a high possibility of capital growth to get more return for their investment.
If you’re the type who hunts down every property hot spot in the UK, then I bet you’re going to be excited to hear that Rightmove recently published its hot spot list for fast selling properties in Britain and Dartford, Kent took the top spot with just an average of 16 selling days before a property gets sold.
Last year, properties in Dartford took an average of 49 days to sell and Miles Shipside, director of Rightmove, explains that the drastic drop in average selling time is a reflection of how in-demand the places within easy commuting distance to London have become over the past year.
Mr. Shipside added that the average asking price of a property in Dartford is under £300,000 (an amount way below the average price in London), thus it’s not a big surprise that people are snapping up properties in this area every 2 weeks or so.
Another top-notcher on Rightmove’s list is Bristol. In Bristol, it takes an average of 31 days to sell a home coupled with an increase of 9 per cent in average house prices in the area.
It’s not only commuter favourites like Kent, Essex, and Hertfordshire which dominated the list. Suburbs from northern towns such as Warrington, Crewe, Middlesbrough and Bury also joined the pack of places where property are sold like hot potatoes.
Generally, the average time for property to sell in Britain dropped to 79 days as of January 2016. This is a drastic drop from last year’s average of 87 days.
Rightmove also revealed that Darlington is the hardest place to sell property since sellers take an average of 132 days to find a buyer for homes located in the area. St. Helens came in as second slowest place to sell property at 128 days.
I won’t be surprised if investors start to clamour for properties located in these areas; but don’t you ever wonder what happens if you bought an investment property outside of these hotspots?
Rick Otton, an investor known in inside circles for facilitating fast property transactions, says that you don’t have to look for a hot spot, because anywhere you can conduct a property transaction is a hot spot.
In Mr. Otton’s philosophy, property hot spots are wherever you can net good profit. If your property isn’t located in a hotspot zone, you can still attract the buyers by offering convenient payment terms. Rather than ask for a full payment upfront, which will require buyers to pay a large deposit and take out a new home loan, you may offer a flexible contract that spreads the deposit payment in an agreed period (say 1-3 years). This greatly reduces the financial burden on the part of the buyer. And because few sellers are willing to offer similar flexibility, you will be able to attract more buyers, thereby creating a hotspot for yourself.
There you go, even if you miss out on the properties for sale on Dartford, Kent or Britsol you still have options available to you to make the most out of your current situation.