Anyone with a lump sum of cash looking to invest their money into a property can be easily overwhelmed by the constant stream of 24/7 news that gives them contrasting information. One headline says that UK property is finished as a result of Brexit, another says we’ve bounced back only days later.
These headlines are often sweeping statements that generalize the country as a whole. Experienced investors know that they can’t take these news items at face value and they instead identify the areas in which property provides a profitable investment.
Here, I will explain how you as an investor can spot where the best places in the country are to invest. This way, you will outperform lesser areas in the UK and optimize your investment.
Invest where transport is easy
Anyone looking to rent a property to live in will want good transport links to get them from home to work and vice versa. To capitalize on this, make sure you buy a property near transport hubs such as train stations, bus stops, and with easy access to motorway networks.
Many studies have shown that people who live in urban areas want to live no further than 15 minutes’ walking distance from a bus or railway station. That’s around three-quarters of a mile to a mile. As a consequence, any property that’s further away will not attract nearly as many tenants as you’d like to make the demand for your property as high as possible. Invest in a property that’s within walking distance of a major transport hub to give yourself the best possible chance of letting your property out.
Look at the local economy
A city with a poor or even average economy will likely have few jobs, limited services and less of a demand for property there. This is the kind of area you DON’T want to invest in- you will likely have a property that will experience little to no growth and plenty of void periods due to the lack of demand.
If a city has a thriving economy however, there will be plenty of jobs, a large population and therefore a huge demand for property. Investing in a city with a strong economy will also boost your chances of your property experiencing capital growth, adding to the strength of your overall investment.
Regeneration, regeneration, regeneration
If local councils and government led initiatives are pumping millions of pounds into a city in the UK, that’s usually a good sign that the location is good for property investment. Improvements to local infrastructure, more jobs are created, and the city generally becomes a nicer place to live. This all increases the demand for property in this location and therefore leads to capital appreciation, one of the key features of any investment deal.
Easy access to local services
Prospective tenants will want everything close by and understandably so. After all, no one wants to have to drive for an hour just to get to the nearest supermarket. Investigate the local area where you are investing and make sure it’s got easy access to:
- Convenience shops and supermarkets
- Bars and restaurants
- Leisure centre
- Parks and green spaces
With all this nearby, your tenant will be happy, and you will have little to no problem letting out your property quickly and on a sustainable basis.
Low supply- high demand
The basic business principle of supply and demand applies to property investment hugely and forms the backbone of any investors criteria when identifying a location. Major UK cities such as Manchester, Liverpool, Leeds and Glasgow are prime locations to invest in because of the fact that demand is incredibly high yet there is a supply shortage of properties being built in these cities.
Any property near the local services I’ve mentioned are densely populated as everyone wants to live there. Demand will naturally be higher in these areas. The massive disparity between supply and demand is felt nationwide, but in these locations specifically, the effect is felt strongest. Therefore, these are the ideal property hotspots for any investor looking to achieve capital growth.
Check growth levels in areas
It can be worth looking into a locations growth levels over the last few years to see if the area has a history of capital growth. A quick Zoopla or RightMove search can tell you how much house prices have increased over the last year, 5 years, decade and beyond. You can cross reference articles from years ago predicting property growth in certain areas with your own search to see if growth is actually occurring in the area you’re considering investing in.
By following these steps, you can get yourself ahead of the curve when it comes to securing a good investment contrary to what is being spouted in the news. Money is still being made but it’s vitally important to know WHERE it’s being made. Location, location, location!
For more information about our latest investment opportunities, click on the Investments tab on our homepage. Alternatively, give us a call on 0208 445 6542 or email us at firstname.lastname@example.org for more details.