You know the area on your doorstep, which streets to avoid, where the shops, schools and the doctors are. But is it the right area to invest? Or should you be looking at the numbers rather than the proximity to your own home?
Investing close to home often seems like the safer option. With property hotspots often spread across the country, it could also mean you’re missing out on rental income or market value increases if you only hunting where you are.
If you are planning on managing the property yourself, investing close to home is undoubtedly an advantage, saving costs on travel to and from the property and resulting in a faster turnaround for maintenance issues.
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On top of that, you may also have existing relationships with reliable tradespeople and estate agencies, adding to the security of owning a property nearby. At the same time, living in close vicinity to a horror tenant can turn your life into a right nightmare.
Whatever the benefits of investing in an area you know, it would be impossible to be near every up and coming property investment hotspot. Which means any investor with an eye on the margins will eventually be led into unknown territory eventually.
Providing your due diligence is thorough and you manage to build a trusting relationship with a property management firm, investing in a new location can provide a hands-off investment with higher margins.
It really all depends on what you want to get out of your investment. Putting your money in an “unknown” area could mean a better yield and return on investment, although a more hands on investor may prefer to be closer to their property.
