It’s common for many newer investors to ask where they should invest in property. They’re often keen to find the latest residential property hot spot in the hopes of making quick profit.
What you may not realise is that the best possible place to invest in property is one that best suits your investment strategy and your future financial goals. Before you jump into the deep end and purchase a residential property, here are some things to look for when deciding where you should invest in property.
Lots of property investors strive to find the best possible locations available. However, if your goal is to invest in property, the location you choose should be the one that best suits your investment goals. For example, if your goal is to generate steady rental income, look for a location with strong rental demand. If your goal is to focus on future capital growth, look for an up-and-coming location with lots of new development and good infrastructure. If you shop carefully, it’s possible to find property locations that offer both options.
Everyone’s financial situation is different. The amount you’re willing to pay to buy a buy-to-let property could depend largely on your financial circumstances and the amount you’re able to borrow on your investment mortgage. Alternatively, if you’ve done your due diligence first, you might have set a specific price point for your investment purchase. For example, you might already know how much rent the tenants are paying for a particular type of property in your preferred location. If you’ve done your sums, you’ll also know how much you’ll pay on your mortgage repayments and other associated costs of owning the property. When you know the numbers surrounding the purchase, you’re in a stronger position to set a specific price point that works for your investment strategy.
Older homes certainly have a level of charm and appeal for many investors. However, older homes could also mean higher costs in terms of ongoing maintenance and repairs. Newer properties or newly-renovated properties generally require far less maintenance and fewer repairs, which could help reduce ongoing costs.
Always consider the type of property you’re considering and how it might appeal to prospective tenants in that area. If you’re investing in residential property, it can be tempting to shop around for a larger family home in the belief that a bigger home should mean more rent. However, lots of tenants prefer a smaller home or flat that could mean lower maintenance for them.
It’s also worth taking into account the type of tenants driving demand in the location you’re researching. Young, professional couples may want something completely different to a retired couple who want to downsize, so buying a large family home might not be suited to the prospective tenants in that area. Be sure to consider the local demographics and demand for certain types of residential properties before making a decision.
If you’re hoping to invest in property, but aren’t sure where to invest, speak to the professionals here at Blackmore Homes. We have a variety of quality developments available in a range of different locations, so you’re sure to find the right property to suit your investment goals.