Why location is key to buying an investment property
If your 2020 New Years’ resolution is a north London investment property, location is as important as ever. From schools to public transport links, find out what you need to look for in a great investment location.
Everyone knows that ‘location, location, location’ is the mantra when buying a residential property. While location is important when buying somewhere to live, the same absolutely goes for buy to let properties too. As a new landlord you’ll be looking for high rental yields, minimal void periods and capital growth over time.
You may not be able to predict what will happen to house prices over your period of ownership, but by choosing wisely, you can make the most of your investment. Look for a property in the best location for your budget and do your research on the area, thinking about how attractive it is likely to be to potential tenants.
It makes sense to have the type of tenants you are targeting in mind when deciding on a location. If your budget will only stretch to smaller apartments, your target market probably isn’t families, where schools, parks and nurseries are a big priority.
If you’re looking at young professionals, you’ll probably want a flat that’s close to amenities and nightlife as well as handy for good transport links. You might also want to consider whether it is close to a local employer – a global company, hospital or university, for example.
Find out more about the sort of people who live in a neighbourhood and the average rents they pay. This will help you get a good idea of whether you’ll achieve the return on investment you’re looking for.
To help you decide if a location is right for your buy to let project, here are some things to consider:
1 How is the traffic?
Is the road busy at different times of day? Going back a street from the main road may mean the property will hold its value better and be more attractive to potential tenants.
2 Check for planned regeneration
Regeneration schemes are part of the London landscape, so do your research about any happening in the area and think about the impact, good and bad. Will the plans bring better facilities, or mean noisy works for years to come that will deter renters?
3 How are the schools?
Houses close to outstanding state schools will always be popular with renters and retain their value. If you’re targeting families looking at popular primary and secondary schools, find out how close you need to live to have a realistic chance of a place.
4 What are the main attractions?
Look for rental properties with good amenities close by. Attractive bars, restaurants and shops can all make a place appealing to your target tenants. Factors like convenience stores, neighbourhood pubs and coffee shops can also give a particular street the edge.
5 How is the transport?
Easy access to good transport links is always a bonus. Be aware of the property’s walking distance to tube or trains stations and the bus routes it is served by.
If you’re considering purchasing a buy to let property near Islington, Highbury or Newington Green, we’d be happy to discuss the merits of different locations and share our many great properties. Contact us today to find out more.