Crunching the numbers has an important role to play when it comes to buying an investment property. Rental yields and capital growth calculations fill the spreadsheets, but what about property location? How much of an impact does that have when it comes to deciding where to invest?
Whilst location has always topped the list when it comes to buying somewhere to live, it is also just as important when it comes to buy-to-let properties. Remember, all the things you look for in the local area when you are purchasing a new home, your tenants will be wanting those things too.
Choosing your location wisely can help you achieve the high rental yields and low void periods that you need. A desirable location creates demand, and in turn raises property prices – great for resale values down the line.
So how do you know what is the right location to invest in?
First step is to know the type of tenants you are targeting, and what they might need from the location they are renting in. Families want good schools, parks, and family-friendly activities, whilst young professionals want to be close to good transport links and local amenities, and students are after properties close to universities and colleges and nightlife.
Then it is time to do your research.
Think about what the local neighbourhood has to offer, who currently lives there, and the average rents paid. Look at the big picture. For example, a low property supply can mean a higher number of tenants looking for a property just like yours, and whilst students may not be your ideal tenants, first-class universities can mean a sustained population growth as students choose to remain in the area and become young professionals and maybe even the families that will fill your property in years to come.
Now this is much easier when you know the area well already, which is why most investors tend to invest in the same area, close to them. However, this might not actually be the best location for return on your investment. In fact, there could be another location you didn’t even know existed that could be even better.
Location Spy is here to help
It could be time to challenge your perception, delve deeper into the location you know and take a look at some you don’t. And the easiest way to do this is with Location Spy.
Select from our curated list of investment hotspots , and let Location Spy do the hard work for you. A free report on your chosen location will be with you within 24 hours.
Understanding the location is the first step towards making sensible, and knowledgeable, property investment decisions.
Visit Location Spy now to start your journey.