Discover the next property hotspot by counting piles of bricks

Have you noticed how many people are selling their properties these days? If you’re looking to live in an area where prices are likely to sky-rocket, considering down-sizing or are looking to make money from your next big move, read on…

The property pages of The Star won’t be enough when looking for your new home. Here’s how to spot those up and coming areas to get in before prices rise:

1.    Uncover hidden value by counting building operations. A sure sign that the area is about to rise in value is the number of houses being added to or altered in what was previously a quiet area. However, the current economic climate has people tightening their belts, so look out for the subtle signs. For example a house being repainted or walls and security fencing being erected. Also, look at the properties that have recently been sold. Are the new occupants driving newer, fancier cars? Small signs like these show that there’s probably an influx of new money into the area. If you live in a small town and notice the city people starting to move in, then your home in the previously sleepy dorp could become a valuable gem.

2.    Does the neighbourhood pass the desirability test? The emergence of a shopping mall, trendy restaurant or coffee bar is the starting gun for investing in property! Ideally you’d want to hear about them before they open so drive around this weekend and look for empty shop fronts. Hoarding around an old shop or obvious evidence of workmen means that you need to find out what’s going on. Trendy coffee shops, restaurants or a Woolworths food outlet means great investment potential!

3.    Check out the neighbours. Look at the people around the neighbourhood you want to buy in. Do they look like professionals driving smart cars? These are positive signs that new money is moving into the area, increasing demand and pushing prices up. An area with little litter and well kept gardens are also a sure, less obvious sign.

4.    Is the location worth the wait? It takes roughly between five and ten years for an ‘up and coming’ area to reach ‘desirable’ status. Remember some areas would be impossible to boom, such as those adjoining industrial areas or with poor quality housing. Look for areas with character, with homes that need light sprucing up. If you plan to stay for a long time and have the extra money, consider investing in that extra room to improve your quality of life, and future selling points.

5.    Get the low-down on local schools. A good school in the vicinity could add thousands to the value of your property and will always sell at significant premium compared to those necessitating hours of commute. Houses near transport systems are also considered desirable.

6.    Are the outside investors pouring the money in? Keep an eye out for areas that have been neglected for years and are suddenly showing signs of rejuvenation. For example, Newtown went from a derelict area of Joburg’s CBD to an area of desirability and value. Action taken by local residents and authorities attract investors keen to explore its potential, thereby attracting property buyers. Keep an eye open for areas of similar potential near you.

7.    What really matters at the end of the day? Position and location is everything. A great view, lots of space, privacy and great neighbours are attractive elements to a new home. Many home buyers are also interested in the house’s position in relation to schools, supermarkets, shopping centres, cinemas, parks or place of work. In South Africa it’s also imperative to consider security. Be sure to speculate on the safety of the area you’re looking to buy in.

8.    New businesses pushing up the prices. Look out for new businesses moving to renovated, older and larger houses. This makes it likely there’ll be a sudden demand for rental accommodation, followed by a sustained increase in demand for property.

Take that drive today and see how many of the above criteria the area fulfils. Successful property markets should demonstrate at least six or seven. If this is the case, make your move without the paranoia!