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How transport gets investors on track

Written by Jim Barnaby

Monday, 14 April 2008

Today's news that the Bank of England's monetary policy committee has cut the base rate again to five per cent will be welcome news for investors in property amid a climate that has seen the market take something of a hit in recent months, both from the higher interest rates brought about by the increases in the rate between August 2006 and July last year, plus, more recently, the credit crunch.
While many have reported that the buy-to-let property market has enjoyed some advantages from the current situation - such as increased demand and with it higher rents due to people who would otherwise be getting on the housing ladder being unable to do so - the investment market is never without need of some hotspots to give new investors some enticing prospects and existing ones opportunities to grow successfully.
Even in such times as these a number of locations have been tipped to do well, with the Independent's list at the start of the year including Wales. This may seem odd now given the fact that both the March house prices figures from Halifax and the February statistics from the Land Registry, both of which listed Wales as the region with the biggest drop in prices, but the reasoning the Independent used was that it was the second home market that would do best, since prices were comparatively cheap in areas close to the border such as Monmouthshire, compared to the neighbouring Cotswolds.
However, this is not the only element of the Welsh market that may defy national trends and offer investment prospects. The Independent also mentioned that some areas would benefit from the "ripple effect" of being commuter towns near to Cardiff, offering Newport as an example.
But it was not Newport that the Western Mail reported on as a new boom town this week. Instead, it was Newbridge property in Ebbw Vale. While the valleys have had a tough time of things economically since the mines closed - hardly the kind of thing to boost the local property market - the town has seen its rental property market boom in the last two months after the old rail link with Cardiff was reopened.
The restoration of this service has made the area attractive for commuters, as explained to the paper by chartered surveyor Charlotte Burles, of letting agency Parkmans. She said: "It has had an effect for the rentals market, in Newbridge in particular. Properties in and around Newbridge don't seem to be sticking as they were a year ago, when some properties were hard to find tenants for."
She added: "Prices are rising, up to prices of similar properties around the Blackwood area, which was more favourable a year ago."
Ms Burles added that nearby Risca had seen a similar development due to its link with Cardiff also being opened, adding that the reopening of Llanhilleth station would do the same for that village's market as well.
The factor that good transport links can play appears to be a clear one in the case of Ebbw Vale and may provide a big clue for investors about where the coming hotspots will emerge. The Independent's predictions for the year emphasised this as well, suggesting that new and faster rail links with London would boost north Kent, while the various transport developments that were being added to everything else happening in the run up to the 2012 Olympics would do likewise for east London.
Indeed, the Times reported last month that rather a lot of London stands to either see hot spots getting hotter still, or new areas emerging, thanks to the numerous developments due to take place over the years ahead. These included the extended East London line, the additions to the Dockland's Light Railway and Crossrail, which will run from Berkshire to Essex via central London.
On this basis, investors, whatever the overall trends in the market, may be wise to check where and when the next railway, underground or tram system is to be constructed when looking for the next investment opportunity.
In today's world Property investment is an excellent investment option especially investment in UK

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About The Author:

Jim Barnaby is a real estate investment broker and successful property investment adviser delivering research and selected UK and overseas property investment solutions with experience in spanish properties, french property investment, German property, Cyprus holiday homes, Property in Cape Verde, German property investment, cape verde property buy to let property

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