When investing in property in the UK, you’ll often hear the famous phrase – location, location, location. Most property investors know the importance of location, and understand that a particular place can make or break your profit margins. But what does a good location actually look like, and how can you tell whether or not it’ll generate a good profit?
Here’s a breakdown of what a good location actually is… and how to find it.
Property Investment in the UK – Finding the Right Location
- Predicting the future. The best areas aren’t always the highly desirable spots in the middle of the city. Sometimes, they’re the less well-known neighbourhoods that are primed for growth in the future. In cities, it’s common for people to move to the suburbs once inner-city houses become too expensive. You only have to look at how strongly locations like Bromley, Croydon and Brentford are performing to see this in action. Brentford properties, for example, have increased in value by 40% in the last two years.
- Regeneration. Likewise, areas that are due to be regenerated often yield fantastic profits. Improvements to public spaces and better amenities bring far more tenants to the area, which is great news if you’re looking for buy-to-let property for sale. To find out which areas are scheduled in for development, visit the GOV.uk website.
- Transport links. Transport links are always popular with tenants, and generally speaking, you can enjoy a better rental income if you purchase close to a train station. Remember to think to the future. Are there any additional rail links scheduled for the area? For example, the arrival of Crossrail and Crossrail 2 has caused house prices to rocket in certain locations. Invest now, and you could enjoy an excellent ROI in a few years’ time.
- Good prices. If you want to invest in a desirable area, be prepared to pay a premium. Whilst this can still be lucrative, paying a high price will inevitably eat into your profit margin. Savvy investors often explore properties situated close to desirable areas, which are still within walking distance, but come at a fraction of the price.
- Who will you sell to? Even if you’re looking for buy-to-let property for sale, you may still want to sell it in the future, and when you do, you’ll want to make a profit. When viewing properties, think about its desirability. Who would buy it from you and what would make them pay a higher price? Would the proximity to a local school be attractive, for example? Or would a buyer pay more to be closer to their place of work?
The Buy2Let Shop
If you’re considering investing in property in the UK, and you’d like some assistance with your search, talk to The Buy2Let Shop team. We’re property investment agents in Bromley, and we’ve got a range of properties on our books that are competitively priced, and not available to the general public.
To find out more about our services, which also include helping you with buying a house at auction and regular property investment seminars, visit The Buy2Let Shop website today.