BUYING a house that needs renovating can be the ideal way to leap up the property ladder but how do you find that bargain wreck in the right location?

The organisers of the Homebuilding & Renovating Show at the Bath and West Showground, Shepton Mallet on November 25 and 26 have come up with some great tips to help you find the hotspots and navigate your way through prices, agents and areas.

  • Choose Your Area carefully. The ideal buy is a run-down house in an up-and-coming area so put location at the top of the list. No matter how much you improve a house, if it's in the wrong part of town the end value just won't have been worth the effort.
  • Keep An Eye on Prices. Look out for boards declaring a property is sold. Ring the estate agent and find out what it sold for. In up-and-coming areas properties will be selling in excess of the asking price. Get information on houses prices and trends from the internet.
  • Talk to Those in the Know. Visit local estate agents and ask about local trends in house prices. Ring up a few local valuation surveyors as they can give a very useful insight on house prices in their patch.
  • Make the Property Papers Bedtime Reading. Analyse the property pages each week: circle properties that look interesting and watch out for them the following weeks to see if they are still for sale. Property prices in hotspots will rise, as each deal exceeds the last. Prices for a whole street can rise almost overnight based on just a few sales.
  • Visit Auctions. Apart from being a fascinating experience, in property hotspots auction lots are likely to be the subject of fierce competitive bidding by traders with their ear to the ground.
  • Count the Skips. A telltale sign of an up-and-coming area is the number of skips in the road or the piles of builders rubbish in the front garden, indicating that homeowners are seeking to maximise the value of their home or investment.
  • Follow New Housebuilding. Developers spend a great deal of time and money researching where they should be building new homes and if a new housing development appears it's a good indicator that demand is strong and house prices will rise.
  • Look for Local Investment. Watch for news on improved transport links or major business investment/job announcements that will increase housing demand and drive prices up.
  • Areas to Avoid. Some areas have a negative effect on house prices and will depress the resale value of your property no matter how well you renovate it.
  • Assess Development Potential. Run a feasibility study on the development potential of each and every property that looks like it may be a good opportunity. The key calculation to make before buying any house to improve is: estimated end sale value minus estimated purchase price minus total costs equals net profit. And always remember to add in a 10 per cent contingency!
  • Add Value. There are five key ways of adding value to any house: repairing the structure, cosmetic improvements, enhancing the existing space, adding extra space or enhancing the amenities.
  • Do your homework before you start. Visit The South West Homebuilding & Renovating Show at the Bath and West Showground, Shepton Mallet on November 25 and 26. The exhibition features over 150 exhibitors, six free seminars and six free masterclasses every day.

Tickets are £5 in advance or £8 on the door (children under 16 go free). For more information visit www.homebuildingshow.co.uk and for tickets call 0870 906 2002.