Which Location Should I Invest in Property?
Location, location, location: Which location should I invest in property?
When getting started in property investment, you may find yourself asking, ‘where should I invest?’ and we always recommend the best place to start is your local area. While I still advise you speak with local Estate Agents to find out about the property market in a specific area, we have to remember that estate agents will likely try and convince you their area is great, as you are looking to buy a property and they are trying to sell a property. We advise when starting out to stick with the area local to you that you know well. That way, you know how quickly homes are selling and the areas to potentially avoid.
We would advise you to buy a map of your local area and start looking online at homes for sale. You will find that similar properties come on the market regularly in specific areas, for roughly the same price and the same condition. You can then use the same mortgage provider, solicitors etc. to secure the properties. This creates a predictable and scalable system for you.
It is easy to get caught up in the hype of locations and be tempted into buying in a nicer area at a higher price because it seems like a sensible approach, but in practice, this is the opposite of what works when you are trying to create a sustainable and cash flowing investment portfolio. If you bought properties all around the UK, then you’d need more hours than are in a day to be able to make this work, not to mention your social life would be non-existent. We would recommend investing in a small area locally and grow this area slowly over time.
Apart from living in a rural sparsely populated area or an expensive city, the answer to “where should I invest?” should always be in your “local area” albeit in the slightly lower-end suburban area. This will increase your chances of success over time which will keep the cash flowing.
Every location has its advantages and disadvantages. So long as you understand the pro’s and con’s of an area and develop a level of knowledge other investors don’t have, you will make money where they haven’t been able to.
