LOCATION,
LOCATION, LOCATION…
Three small
words that can transform your property
investment
decision, says Belvoir.
As a
new landlord or investor in the buy to let market, what would be your first
priority – the type and purchase cost of the property, or the place in which it
is situated?
There
is no single, definitive answer to this commonly considered question, but in
property circles the phrase ‘location, location, location’ is often referred to
as the first three rules of property investment.
It’s
the same for tenants too. Delia Thing who heads up the lettings team at the Belvoir Andover office on Bridge Street, says: “When looking for the ideal place to invest
in or to rent, it is worth remembering the adage ‘you can change the house, but
you cannot change its location’.
“To
find a property that will appeal to a tenant and provide a good level of rental
income and/or capital growth it is extremely important to firstly define that
appeal. There are many considerations to take into account and a good place to
start is to look for towns, areas or streets that are currently in demand, and
are likely to be increasingly popular in the future.
“Location
is always a key driver, with proximity to work, schools, commuter routes, shops
and public services amongst the many factors to be taken into account when
choosing to market a property as a buy to let.
“In
today’s market, there is an ever accelerating need for private rented property,
with tenant demand often outstripping supply. To be absolutely sure as to
whether a property would make a good rental investment it is worth consulting a
lettings specialist such as Belvoir.
“Expert
agents can identify local trends and spotlight properties that are the most
popular for the type of tenant looking to rent and the best areas in which to
find them.
They
will know where property ‘hotspots’ are and which parts of a city or town are
driving the market.”
Many
buy to let investors choose to stay local in order to ‘keep an eye’ on their
investment. It’s a strategy that works for thousands across the country, but
there is no reason why a buy to let investment cannot work just as successfully
hundreds of miles away - provided you make the right choice of professional
lettings agent who can manage, maintain and keep a check on the property on
your behalf.
“Within
the Belvoir national network of over 160 offices there is a high proportion of
landlords who own just one or two buy to let property investments, and many of
these are in a different part of the country to where they are based.
“In
cases like this an agent will have all the right up to date local knowledge and
know properties and locations with the highest tenant demand. They will be able
to advise on current, achievable rental levels and help avoid the pitfalls of investing
in the wrong areas.”
Belvoir’s Andover’s advice for helping to decide
the best location for a property investment include:
· Only decide on where
you want to invest after thorough research.
· Do not make a
decision based on the look of the property alone. Just because it appeals to
you, it will not necessarily be a good rental investment.
· Providing tenants
with a quality, well maintained property for them to call home carries
responsibilities. Only work with a local agent that you have checked out, trust
and who has gained all the relevant professional industry accreditations.
· Remember that big is
not always best. A one or two bedroom unfurnished apartment can often yield a
better return than larger, four bedroom furnished houses. It’s all down to
location and the type of tenant you are targeting.
· Overly high ‘yields’
– or returns on an investment - can sometimes indicate hidden issues and may
not necessarily lead to a good investment.
· Beware of “buying
cheap and paying dear”. If a property is
located in a low quality area it can increasingly become run down – attracting
the wrong type of tenant and achieving poor long term capital growth.
“Whilst
there are many other things to consider when entering the buy to let market,
‘location, location, location’ must always be uppermost in the mind of a
landlord investor,” adds Dee.
“Sometimes
the difference between a good rental property and a not so good one can be down
to which side of the street it is on, let alone its geographical location.
“If
you want to avoid costly mistakes early on in the process, invest in good local,
experienced advice. Initial consultations with our office are both free and
carry no obligation to proceed.
“At
Belvoir we can help to source suitable properties and steer people away from
opportunities that, at first, may appear good on paper but may not prove to be
the best decision over the longer term.”
If you are looking to invest in the buy to let market, please contact us to arrange an informal chat about your options, what is available and what to look for. Please call Delia Thing on 01264 366611
Belvoir Andover are the towns leading buy to let & investment specialist who have been the industry leader since 1997.
