It’s important to note, regardless of what anyone says, it’s impossible to predict capital growth.
This isn’t to say you can’t or shouldn’t make predictions and it isn’t to say that people make predictions all the time that turn out to be entirely accurate.
But just remember that predictions are just that, they aren’t going to come good every time and all markets can turn, quickly.
If you end up buying a property, expecting (and relying on) growth that never comes, you’ll be joining a long list of investors who have experienced exactly that.
Of course, we are not suggesting for a moment that you should ignore growth or fail to factor it into your decision making, just that you should be prepared for any predictions you make to be inaccurate.
In-order to best-anticipate capital growth for a given area we would always look at population growth and local investment, first.
These two factors will give you a pretty good indication of the economic trajectory that a location is on and researching something like this is relatively easy, as most of the data you will need can typically be found on local council websites.
Another thing that an investor can examine is, of course, 5-year and 10-year growth figures for the area but this will only give you a snapshot. It’s historical data, after-all, that doesn’t tell you anything about the present or the future.
In truth, however, there isn’t a particular, turn-key process to follow, just by-nature of every location being different.
So, if capital growth is something you want to focus on then great. You just need to make sure you understand an area, completely. Read everything and gather as much data as you can.
But be careful not to get yourself into a position where, if growth doesn’t happen, your investment ceases to be profitable for you.