You may have heard of the ripple effect and how it can impact property prices. 

In fact, the ripple effect is responsible for many areas, particularly around London, going up in price.

But did you know that there are ways to work this phenomenon to your advantage? One of them is using my very own called Ripple Effect Pentagon

The term 'ripple effect' refers to a wave of rising house prices from a central point of high activity. These areas have the best property investment fundamentals, which keep demand, and prices, high and they ripple out from there.

Obviously, not everyone can afford to buy in these 'best' areas. Research by the National Housing Federation released in February showed that Londoners would need a 266% pay rise to afford to buy a property in the capital.

Moving out along the 'ripple' to where you can afford. 

As a result, many investors and homebuyers look to further out to buy. An example is that London Zone 1 and 2 have the best fundamentals, that's obvious, they are the most expensive and closest to central, including all the transport, schools, everything. Once demand and prices get too high in these areas, then people buy in London Zone 3,4 and 5, and then commuter towns and finally to Major cities with universities and Major towns. This is the ripple effect in a nutshell.

The ripple effect pentagon can be a useful tool in deciding where to place your money, and we recommend these five areas as they offer everything that you need in order to maximize your returns so you can build the portfolio that you want.

Ripple Effect Pentagon

So why have we chosen these areas?

We focus on major towns with a population over 100,000 as we are looking for vibrant communities where rentals are easy to achieve and there's access to good fundamentals.

We focus on Major cities with universities, as universities and their students are great from an investor point of view as they tend to take out a lot of the lower end stock, which helps drive demand on the higher end. This is exactly where you want to be as an investor. If you are investing in specialist assets to let particularly to students, it's particularly important to have a well planned property investment strategy and that you've done your research before investing to ensure you build your portfolio in the most efficient and safe way possible.

We focus on Commuter towns which are also great for property investment as they see high demand from City workers and other commuting professionals who can’t afford to buy in London. We focus on areas that are 90 minutes away from London or less.

Why we stay clear of smaller towns and cities. 

We avoid smaller areas due to the higher risk of something happening that can affect house and rental prices. For example, a small town may lose a major employer or floods could affect the area.

Hotspots are 3 to 5 years into the future... Not Todays hotspots.

We always think ahead by investing in an area three to five years before it becomes a property hotspot. This is because we want to be able to ride that wave before it’s too late. This is where the ripple effect pentagon is a great tool to have handy.

For example, if prices in London Zone 1 and 2 have shot up by 200% in recent time, it’s unlikely that this level of growth will continue for the next few years when you are looking to get returns off your investment. In this case, it would be advisable to instead put your money into a development in the next affordable area with the best property investment fundamentals where prices haven’t gone up too much but are likely to increase in the near future.

Even if you can’t afford an area today, there’s nothing to say you won’t in the future. Buying in a commuter town or a major town with a university can generate enough money for you to eventually be able to afford a property in London Zone 3, 4 and 5 or London Zone 1 and 2. 

It’s important to be flexible as an investor unless you want to create an individual plan and strategy and focus on one or two areas. Even then, it’s important to understand the ripple effect and have a strategy that meets the current market.

Once you’ve decided, based on the ripple effect and with the help of the pentagon, what type of community to buy in, it’s time to narrow it down further by taking a look at specific areas and developers by getting a hold of the Area Investment Guides that apply to that specific town or city.

Questions? The team is ready and waiting to give you help where you need it. Give our Property Consultants a call on +44 (0)207 923 6100.

Google 4.8/5.0 - 43 Reviews
Trustist 4.9/5.0 - 69 Reviews
profile-pic
profile-pic
profile-pic
profile-pic
profile-pic
profile-pic
profile-pic
profile-pic
profile-pic
profile-pic

Invest without any stress

I am constantly busy with far too many priorities fighting for my attention. I came across Gladfish Property Investment by accident and its been a really good experience to date. Ryan has provided helpful professional advise that has opened the door for me to invest without any stress. Answering questions patiently and providing a service way beyond my expectations, truly delighted by the amount of handholding I have had to date. Cannot recommend them enough, the company overall for their flexibility and going the extra mile! A real surprise

Louis

professional and efficient

I have now dealt with Gladfish on 2 occasions, and both times they were extremely professional and efficient. Highly recommend.

Maksim

I have thoroughly enjoyed the process of starting to build a property portfolio

I’ve thoroughly enjoyed the process of starting to build a property portfolio with Gladfish. James and Ryan have made the process a fun and stress free one and I’m enjoying learning about the industry further as I go. Their advice in other areas, not just ones relative to our investment projects, is very much appreciated and I’m confident in partaking in future projects with them. The email content is very useful and I would highly recommend the company.

Kieren

The team clearly enjoy helping others

Gladfish have been very pleasant and professional throughout. I would never have taken the plunge if I had not met Ryan. He set my nerves at ease and showed me the ropes. The team clearly enjoy helping others. Thanks so much

Nicole

We have since increased this to 3

Though we were initially only looking at a single purchase, we have since increased this to 3, because the team make us feel very confident in what we, and they, are doing. We would recommend them to anyone.

Richard

Everything was made very clear from the start

What I liked about the Gladfish experience is that everything was made very clear from the start. The whole journey was mapped out. Everything was exactly 'what it said on the tin'. There were no unexpected surprises.

Katherine

Protect and develop my investments

Gladfish have been responsible for successfully building my increasing property portfolio, without whom it would have been decidedly more challenging, stressful and I suspect significantly less profitable! Dedicated support and strategic advice from Ryan and his wider managed team have guided me through my entire journey from a baseline knowledge of property investment to being able to make informed long-term strategic decisions and restructuring to both protect and develop my investments. Whenever a conversation crops up about property investment I always recommend that the starting place should be a conversation with Ryan and Gladfish.

Nick

Enjoyed the process of starting to build a property portfolio with Gladfish.

I’ve thoroughly enjoyed the process of starting to build a property portfolio with Gladfish. James and Ryan have made the process a fun and stress free one and I’m enjoying learning about the industry further as I go. Their advice in other areas, not just ones relative to our investment projects, is very much appreciated and I’m confident in partaking in future projects with them. The email content is very useful and I would highly recommend the company.

Kieren - Client

Best service team

One of the best service team I have ever come across. They understood what the client needs in order to make decisions. Clear and concise communication drawing out the key points. Very knowledgeable and competent team to work with

Emeka

Listened and understood our goals

As an overseas investor, despite the distance, I am still looking for that human touch to the transactions. In Neelam and Sharon I got that and more. Neelam listened and understood my goals and helped and continues to help along the journey. I am glad with the Gladfish package, right from the online investor resources to how they interact with me. I am well set for a long-term relationship.

Jasper

Download your free copy of The 3+1 Plan

ACHIEVE FINANCIAL FREEDOM WITH JUST 4 PROPERTIES.

THE 3+1 PLAN - FINANCIAL FREEDOM
  • Achieve financial freedom with just 4 properties.
  • Grow your property portfolio and become an effortless investor, not a stressed landlord.
  • Save time building your portfolio so you can spend time enjoying your life.
  • Manage your cash flow and use checklists to stay on track.

Find out why property investment is the most effective way to secure your financial future, plan for your retirement and live the life you want.

Find out why most property investors never succeed at building a successful property portfolio.

Download Your Copy Today And Get Instant Access To Our Resources and Team for Support.

Property Investment... Effortlessly Done For You!

>