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benj

Find The Next Hotspot

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Here's an article from Money Weekly about how to identify the next up-and-coming property hotspots for all your reckless BTL investment needs. According to More Than, the insurers, you just need to find slightly dodgy areas where "Yappies" - Young Affluent Professionals - are moving in with their big TVs, three mobile phones and all the rest of the trappings of trendy urbanites.

"The indicators chosen for the Yappy index are a reflection of the lifestyle habits of young professionals," says the company. "They have been used to spot areas that have an influx of these wealthy professionals - who tend to move to previously unfashionable areas and set new property trends."

The logic of this escapes me. Follow that system and the breadcrumb trail will lead you straight to Credit Card Central. In this climate, if a less-than-desirable area starts to fill up with BMW-driving 20-somethings, doesn't it seem more likely that they are overstretched, credit-constrained and looking for a cheap place to live while they work off some of their debt?

What really made me laugh was that #6 and #7 in the list of "top hotspots" so compiled were both addresses in Kensington & Chelsea! Up-and-coming areas, eh? :lol:

There is quite a telling bearish undercurrent in the quotes they've obtained from EAs, in what is otherwise a pile of painfully optimistic bull-fodder. "Prices have been going up but not as quickly as they were; they may have peaked. Studio flats start in the low £200,000s. There are buy-to-let flats - the yields are okay rather than fantastic, about 4 to 5 per cent", said one. "There are too many buy-to-lets so there is a rental price war and some investors may not cover their mortgages. They bought without doing their homework, often off-plan and without knowledge of the area. New-build flats are helping the area as a whole but you may not make money on them for a while", said another.

But my favourite soundbite was from an EA in Leeds, talking about the Holbeck area: "I would buy here if I had the money".

A backwater in Leeds where not even an estate agent can afford to buy a house? I think I'll pass, thanks. :blink:

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Here's an article from Money Weekly about how to identify the next up-and-coming property hotspots for all your reckless BTL investment needs. According to More Than, the insurers, you just need to find slightly dodgy areas where "Yappies" - Young Affluent Professionals - are moving in with their big TVs, three mobile phones and all the rest of the trappings of trendy urbanites.

The logic of this escapes me. Follow that system and the breadcrumb trail will lead you straight to Credit Card Central. In this climate, if a less-than-desirable area starts to fill up with BMW-driving 20-somethings, doesn't it seem more likely that they are overstretched, credit-constrained and looking for a cheap place to live while they work off some of their debt?

What really made me laugh was that #6 and #7 in the list of "top hotspots" so compiled were both addresses in Kensington & Chelsea! Up-and-coming areas, eh? :lol:

There is quite a telling bearish undercurrent in the quotes they've obtained from EAs, in what is otherwise a pile of painfully optimistic bull-fodder. "Prices have been going up but not as quickly as they were; they may have peaked. Studio flats start in the low £200,000s. There are buy-to-let flats - the yields are okay rather than fantastic, about 4 to 5 per cent", said one. "There are too many buy-to-lets so there is a rental price war and some investors may not cover their mortgages. They bought without doing their homework, often off-plan and without knowledge of the area. New-build flats are helping the area as a whole but you may not make money on them for a while", said another.

But my favourite soundbite was from an EA in Leeds, talking about the Holbeck area: "I would buy here if I had the money".

A backwater in Leeds where not even an estate agent can afford to buy a house? I think I'll pass, thanks. :blink:

I’ve worked out the next ‘hot spot’

Follow that bum!

After some careful analysis and philosophical thought, I think I’ve figured out the next location, location, location.

I don’t know if I should really be passing on trade secrets to everyone, anyway I reckon you should follow the gay community, just look at Brighton.

Other examples are San Francisco, Manhattan (Greenwich Village) London (Soho)

Gays move in an area

(Generally harmless with high spending power)

Outdoor coffee shops, designer shops open up catering for them

(At the same time converting the area chic)

Yappies move in due to the area becoming trendy and before long you’ll have the next hot spot.

So my conclusion is follow that shirt-lifter.

The theory might work for Artists, Crouch End, Muswell Hill and now Brick Lane.

Obviously work and schools etc have to be taken into consideration.

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