Property Investment Q&A #4: Should I invest in an area I don’t know?

 

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.

https://www.buyassociation.co.uk/2016/12/07/property-investment-qa-1-furnish-not-furnish/

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.

Highgrove Mews

High Net Yield Freehold Houses

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  • Freehold with 4% net yield

£284,955 - £457,000

St Petersgate – Stockport Manchester

New Launch - Stockport Manchester, apartments from £160,000

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  • Experienced development team

Assured Rent Housing Association Leases

Assured Rent Housing Association Leases

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  • Tenant damage cover & newly refurbished inline with requirements of a corporate sitting tenant
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Emerging Birmingham Commuter Town With Properties From Just £104,000

The emerging Birmingham commuter town where properties are selling in an average of just 24 days

  • A collection of 62 two bedroom apartments and 28 one bedroom apartments.
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  • 23 minute train journey into Birmingham New Street Station.

Properties from £104,000

Mill, Stockport

The Northwest's emerging property hotspot

  • Discounted off-plan 2-bed prices from £162,000
  • Completion date - Q4 2021
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Discounted off-plan 2-bed prices from £162,000

South Central – Birmingham City Centre Apartments

Highly anticipated 28 storey launch in Birmingham City Centre with an impressive roof garden and communal facilities.

  • 154 units across 28 storeys
  • Residential multi-media community room, gym, roof garden and sky cinema
  • Excellent future connectivity via the metro system to other key transport hubs and locations around the city

from £205,800

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Property Investment Q&A #4: Should I invest in an area I don’t know?

Property Investment Q&A #4: Should I invest in an area I don’t know?

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