A hotspot is an area where there are properties available for sale that fall into one of these categories:

GoldProperty prices are predicted to rise at a greater rate than the UK average AND the rental yield is greater than the UK average.
SilverThe rental yield is greater than the UK average.
BronzeProperty prices are predicted to rise at a greater rate than the UK average.

We have ranked the categories with category Gold being the most desirable as category Gold enjoys the best of both worlds – capital growth and yield thus spreading the return and overall risk. Category Silver is ranked second as the yield is a certain outcome however capital growth is an uncertain outcome being category Bronze.

We’ve found in our experience that investors choose category Gold, Silver or Bronze on personal circumstances but more so on gut reaction.  Our advice is to choose all of them! There is no need to place all your eggs in one basket. Property is a relatively safe investment but there is a degree of uncertainty, so if possible, by investing in all the categories above you eliminate some of the business risk.

Identification of Hotspot

So how did we identify the hotspots listed? Well the categories are based on two factors:

  1. Actual rental yields
  2. Predicted property prices
  1. Actual Rental Yields

The first factor, actual rental yields, was easy to do.Actual rental yield is:


Since these figures are actuals, we collated all the rental figures from the local letting agents in the chosen city.  All the local property prices in the chosen city from our research on the internet.  We calculated all the yields being offered from each city based on the equation above. We then eliminated all the poor yielding locations, where we thought tenant demand was low (even if they were high yielding) and all high political risk countries.

  1. Predicted Property Prices

Here we did not predict property prices as this is an impossible thing to do. If we could do this we would not be writing this book but buying everything we could in a hotspot area! All we did was to look at what would make an area’s property price rise above the UK average. We came up with the following:

  • Proposed transportation link improvements such as improved road and rail links, expansion of local airports and improved public transport.
  • Proposed inward investment from private companies, government and trusts.
  • Proposed improvements to leisure facilities such as sport centres, parks and shopping centres.
  • Higher than average yields
  • Recent increases in political stability
  • The likelihood of holiday seasons being lengthened for Holiday areas.
  • Our own experience gathered from being in this industry and from comments from letting and estate agents.

The Seven Types of Investor

What Type of Investor Am I?

So you know you want to invest in property by why and how are you going to invest in property?  Well there are many ways to invest in property but we have narrowed these ways down in to seven types.  Investors can be broadly categorised into one of the following and it is up to you to decide which category or categories you fit into:

Cash & Equity InvestorTo maximise rental income and capital growth combined.  Will also sell home when this further achieves this objective.This approach is a semi-business approach.  The investor has no love for the property but is only interested in the overall money the property is going to make.  He will sell if the market is high or hold if the rental income is good.  His intentions are to re-invest any monies gained back into another property or properties.  This type of investor will have a greater degree of interest in property than other investors as he will stay abreast of the market.
Pension InvestorTo cover all costs involved with the house by the rental income and have the house paid off by retirement age.  The rental income (or return on sale) thus providing an income there on.This investor will be at least 15 years off retirement age.  He will look for a property that will always have good rental demand as he intends to live off this rental income when he retires.  He may also consider selling the property and using the monies raised to purchase an annuity.  If so, he will also look for a high capital growth area.  As good practice this type of investor should always evaluate whether their equity in the property can purchase an income greater than the rental income being generated currently.
Holiday InvestorTo cover some of the costs of owning the house by letting it out but ultimately to get a holiday home that can be enjoyed by family & friends.Typically an investor with a family who wishes to save on holiday costs and to eventually pass down the property to his children, or release the value of his nest egg.  Saving money rather than making money is the motivation for this investor.  He will seek non-conventional investment properties such as cottages, properties far from the city centre and stations and restricted occupancy homes.
Retirement InvestorTo cover all costs involved with the house by the rental income and have the house paid off by retirement age.  Then sell own home to move into the investment home.Again non-typical investment properties will be sought and he will probably seek properties in a surrounding village of a main town or city.  A key concern for this investor is tenant demand so he may well be steered towards villages surrounding main towns and cities.  The investor will use the proceeds from the sale of his original home to clear outstanding mortgages and purchase an annuity.
University InvestorTo provide a home for son/daughter while at university for 3 years.  Sell/hold after 3 years.The aim of this investor is to purchase a 4+ bedroomed home near the university and get the son or daughter to live in one room and rent the other rooms to his or her friends.  The rental income will cover all costs involved with the house and then the house can be sold on for profit or held and rented out again through the university.  The overall profit on the investment is the boarding fees saved in the 3 years and the gain on the sale of the property.
Downshifter InvestorTo sell existing home and buy a lifestyle property (i.e. B&B) with no outstanding mortgage.This investor will realise the gain in their home free from tax and purchase a property which will change both their location and their job.  Typical properties are B&Bs and shops with living accommodation above
Business InvestorTo maximise rental income to replace salary from full-time employment.The investor will look for high yielding properties so as to replace the lost income from leaving their job.  He will invest in only high tenant demand areas as he relies on this income to pay his day-to-day bills.  He will be interested in the property market hence he will be abreast of the latest prices, mortgage rates and rental figures.  This way he can ensure that his net income is maximised.

From reading this list you will be able to decide what type of investor you are and more importantly what you want to get from your investment.  Once you are clear what you want then the whole process becomes easier as you know exactly what you are looking for.

The Template

You will see this template filled out for each hotspot we have found.  Here is a brief description about what each field is:


 City, Country 














PopulationPopulation of country 
PopulationGrowthGrowth in population of the country 
Land AreaThe land area of the country in square kilometres 
Currency & currency rateThe currency of the country and its conversion rate to the UK pound. 
GDP-PPPMethodThe Gross Domestic Product based on Purchasing Power Parity which eliminates absolute price distortions. 
GDP GrowthThe growth in GDP year on year. 
GDP Per HeadThe GDP per person in the country. 
FinancialInterest RateInflation Rate 
The bank of the country’s base rateThe inflation rate calculated to the method of the country 
National BankThe bank of the country 
PoliticalDescription of the political climate 
Social SecurityWhether social security exists 
LanguagesLanguages commonly spoken in the country 
CustomariesSpecific customaries relevant to the country 
Ethnic Make-upThe split of different ethnics within the country 
TaxIncome TaxCapital Gains Tax 
The income tax rules for the countryThe capital gains tax rules for the country 
Description A general description of the country 












Investor Profile:Typical investor suited to the hotspot. 
Category:A rating based on the hotspot’s capital growth and yield prospects 


Population of the hotspotBritish population of the hotspot 
Climate:Hours of Sunshine Per Day in SummerDays of Rain Per YearJanuaryJulyAverage

Water Temp.

Self-explanatorySelf-explanatoryAverage temperature for that monthAverage temperature for that monthSelf-explanatory 
Proximity to:AirportBeachNearest City 
Name and distance from closest airportDistance from beachName of closest city 
Restaurants and bars:What to do in the evening.


Sports and leisure facilities:What to do in the day. 
Transport:Public TransportRoads
Description of public transportDescription of road network
Crime rate:An indication of crime levels. 
Main types of employmentSelf-explanatory 
Future plans:Future plans for the hotspot 
Yield rangeThe range of yields to be expected from prospective property purchases 
Type of propertyEntry Price Rent-



Off Peak

Average Annual Yield 
2 bed apartmentThe lowest prices found for each type of propertyThe rent per calendar month in the peak seasonThe rent per calendar month in the off-peak seasonThe yield, being the mid price of the monthly rental multiplied by 12 and divided by the purchase price expressed as a percentage. 
3 bed apartment
3 bed townhouse

Demand for letting

PeakOff peak 
Finance and leisure scores:Total (out of 10)Financial (out of 5)Leisure (out of 5) 

Total of financial and leisure


Score out of 5 based on its ability to make you money


Score out of 5 based on the amount of enjoyment you can expect

Flights scheduled from:Airports in the UK that fly to the hotspot 
Typical cost of flights:PeakOff Peak 
Operators:Operators that fly to the hotspot 
Description:General description of the hotspot and why we think it’s a hotspot. 
Hot Website:A website to visit to gain further knowledge about the hotspot. 
 Estate Agents:NameAddressTelWeb 
 Name, address, telephone and web details for estate agents selling properties in the hotspot. 
 Letting Agents: NameAddress TelWeb 
  Name, address, telephone and web details of letting agents willing to let properties in the hotspot.