Buy-to-let investment guide: location, location, location
- 11th October 2011
- Property Tips
Choosing between low yielding areas investors know of and high yielding areas of which they don't.
Location has always been key to a successful buy-to-let strategy, as every investor knows. But not all investors have the kind of detailed knowledge of a high-yielding area that can be crucial to buying a property that rents successfully.
Stephen Ludlow, Chairman of ludlowthompson, says: “Occasionally buy-to-let investors choose not to invest in high-yielding areas, like much of ‘zone 2’ in London, because they think they don’t know the area well enough. Instead they stick to less high-yielding areas that they know better.
“There is a risk when investing without detailed local knowledge of buying an appealing looking property that actually turns out to difficult to let. Sometimes a small detail, such as being only a short bus ride from a major university campus or employer, can make a real difference to the total return from an investment.
“But if an investor only sticks to their own local area or the more famous areas of central London, they can miss out on higher returns.”
A specialist buy-to-let estate agent like ludlowthompson can provide local insight to investors to make sure their investment works, including:
- Distance from local amenities, like supermarkets, gyms and bars.
- Proximity of big employers like hospitals, or university campuses.
- An online journey planner, including bicycle, bus, tube, train and walking routes.
Some estate agents have not been in an area for long enough to know the local rental market in enough detail to advise buy-to-let investors, so it is always worth asking the agent how long their team has known the area.
Managed lettings service offers investors access to distant areas
Stephen Ludlow says: “In the UK, not all cities offer the same returns from buy-to-let. An investor based in Leeds or Newcastle, for example, might not be comfortable investing in London because of the difficulty in managing a property which is a long way away.
“Using a professional managed lettings service is one way for investors to access London’s high rents even if they don’t want to spend time in the Capital themselves.”
If an investor only sticks to their own local area or the more famous areas of central London, they can miss out on higher returns.
FREE & INSTANT PROPERTY VALUATION
IN JUST 60 SECONDS