So you’ve never invested in real estate before? You’ll be familiar with the overused phrase ‘location, location, location,’ no matter how new you are. It may be overused, but for good reason. If you’re thinking about investing in real estate, the most crucial decision you’ll ever make is choosing the appropriate location, as well as the correct price. We’ll focus on the relevance of location in the Buy To Let market in this article.
How to choose the best location in the Buy To Let market
It’s not always about the size. In the Buy To Let market, it’s difficult to overestimate the importance of location. It is unquestionably more essential than the size of the investment property. A small Buy To Let property in a good location is typically a better bet than a large property in a bad location. Rents are virtually usually higher in popular neighborhoods, and tenant demand is often significantly higher. As a result, your ‘void periods’ will be significantly shorter.
Who already lives in the location?
It’s critical that you understand your target market as a buy-to-let property investor. What kind of tenants are you looking for? Students? Are you a young single professional? Are there any families with children? People normally desire to reside in an area where they will be surrounded by people who are similar to them.
What about local crime statistics?
Is the surroundings in the neighborhood where you’re considering buying run-down? Are the shops in the area equipped with strong steel shutters? This could be a sign of a high crime rate. You may find crime statistics for a certain location on a variety of websites, including the Police Service – Crime Mapping website and others.
Spotting up-and-coming areas
This is a difficult skill to master, but it can pay off handsomely if done correctly. Identifying an area that is not quite at the top of its game but is showing signs of improvement can be the ultimate win-win situation. In terms of the price you paid for the property, you’ll get a lot of rental income. You’ll do well when you decide to sell because your property will have generated significant capital gains.
You may start by looking in a neighborhood adjacent to a popular, high-priced area. Potential tenants will be looking for acceptable alternatives in the location you’ve chosen as supply outstrips demand. These less expensive locations will most likely have the same transportation connections as the more expensive ones, and they may be in the catchment area of good schools.
How to evaluate potential Buy to Let property areas
The best method to ensure that your due diligence is completed is to do the research yourself. Visit the region both during the day and at night. Are there any nearby issues that could have an impact on property values, such as traffic congestion or noisy gangs?
What’s the shop mix like? Is there a disproportionate number of eateries, charity businesses, or vacant properties? Is there a diversity of store types that cater to local needs?
Are the properties in the area in good repair? Are the gardens well-maintained?
Is there a large number of flats in the area? To identify if a huge property has been subdivided into flats, count the number of bells on the door.
How good are the local amenities?
Take a look at the local transportation options. If you want to attract families, look at the nearby schools. In terms of Ofsted inspections, how do they fare? Clearly, better schools will be a selling point. Looking at the Department of Education’s school league tables might help you make a positive first impression.
Avoid buying a home near a busy road, a busy railway line, a flight path, or an industrial sector. Rather, look for residences near stores, bars, restaurants, public transportation, and decent schools.
Talk to a property investment specialist
If you want to get the most out of your property investment, you need to pick the ideal location. It’s far too important to leave to chance. Always work with an expert in the field of real estate.
Sole Source LLC is here to help. We are well-versed in real estate. We understand investment and are here to assist you.