If you're considering residential real estate investment, you may want to think beyond low prices, the possible regeneration of an area, and development potential when choosing a property. According to a new study by Banner Homes, people actually define the perfect house as being just two miles from a supermarket, ten miles from the coast and within walking distance from the pub - meaning that if you want to have tenants clamouring for your property, you need to focus on location, location, location.
Britons also desire good neighbours and proximity to the countryside and a newsagent, suggesting that a new range of variables should now be incorporated into any investment decision. Piers Banfield, spokesman for Banner Homes, stated: "Community spirit and a close bond between neighbours is arguably a little harder to come by these days, but the study proves it's something we still view as integral to being happy with where we live. The research has also highlighted that even the small things like the local landlord knowing your name or having good neighbours close by that we can trust is a really important part of creating that community feel and being settled in an area."
However, not every property can meet these high criteria and investors must expect competition for prime locations. The cost of picking up such a home could also be set to rise, as property sales pick up across the UK. According to the Royal Institute of Chartered Surveyors (RICS), professionals are predicting a positive 2013. 24 per cent more surveyors across the country are expecting transactions to rise throughout the quarter and this is first time since June 2010 that the national price balance has not been negative. The price forecast is hoped to rise by two per cent during the year, with many areas of the country beginning to "bottom out".
RICS claims this increase in confidence is partly the result of the Funding for Lending Scheme, enabling more and more people to get onto the property ladder. However, there are still areas where investors can obtain low-priced property, including the North East and Wales.
- Wednesday 06 February 2013