Posts Tagged ‘location’

Location, location, location – not only is it the name of the popular Channel 4 property hunting show, hosted by Phil Spencer and Kirstie Allsopp, but it’s also one of the most crucial aspects to get right when you’re investing in property.

First time property investors often assume that they should find a property in close proximity to where they’re based. The reasoning behind that thought is that they’ll be near by to sort out any problems, can check on it regularly and keep an eye on the local rental market.

But whilst it may seem sensible, serious investors need to look at other factors in relation to the location too. It doesn’t matter whether the property is located just down the road or two streets from you, what matters is whether the figures add up and if it’s a good location for tenants.

Here are six important factors to consider before you part with your cash:

1. Most importantly, you need to consider what the cost of the property is, what the return on the property is likely to be and what rental yields you could achieve. 

2. Study the existing rental market in that area and the prices being achieved. Is it in an area where the demand for rental properties is outstripping supply?

3. Is the property near popular children’s primary or secondary schools and could it attract families looking to rent?

4. Is the property located near universities or colleges and would it be attractive to the student rental market?

5. Are there any large hospitals or factories nearby? If so, it could attract workers needing conveniently located housing.

6. Is the town part of a regeneration project? In time, this could help increase the value of the property.
Although it may be tempting to go with the first property you see available for sale, if you want to make money from your investment, you should do your homework first. If it all adds up, then go for it.