Most investors know that if you buy a property and a new transport link subsequently opens your property price and rental price will increase steeply. There have even been reports on this for many cities across Europe by Lloyds bank which you can read if you have the interest give us an email for a copy.
But why do these properties increase in value?
Go back to the ‘basics of property investment’ videos, and ‘how to be consistent in property investment’ where you will see we covered the fundamentals.
The basics are, invest in areas with growing demand without enough supply, and growing wealth. So long as the area can get good mortgages we have ticked the basics, the non-negotiables.
Baron & Cabot know which areas are getting new transport links, and we want to know this because if an area has the above basic fundamentals of investment, then additional transport, means more people can commute to work, this means more people can live here creating more demand. Add to that a transport link will generally connect to the city centre where higher paid jobs are, we will also see higher affordability.
This cycles back into the fundamentals, and creates a faster and faster property price and rental growth.
