Top 5 things to look for if you are investing in property
Landlords are increasingly not only investing in property because of the rental yields, but also because of the capital appreciation that property as an investment provides. As such, it is important to consider which areas are likely to appreciate more than others and why.
What to look out for when thinking about investing in property:
Access to a top school will always mean that a property will demand a premium and hold its value in the medium to long term.
With an increasing number of families renting in the capital, buying a property in the catchment area for a well-regarded school will always be a sensible investment. Look at our School Checker tab on each listing to get a flavour of the nearby schools and how they are rated by Ofsted.
Tenants will often worry more about logistics than the actual property.
One of their biggest considerations is “how close to public transport will I be?”. This is particularly important in urban areas where car usage is considerably lower. Buying a property near a tube, rail, or bus, station also means that there will high demand from rental investors should you choose to sell.
Look for properties that are within a commutable distance from the largest areas of employment.
Most people will want a commute that is under 45 minutes, ideally under 30, so worth working out the best routes to the centre of town is really important. It is also worth considering the costs of public transport to major towns and cities as costs such as annual rail tickets could negate any savings for potential tenants, or even buyers further down the line.
The “up and coming area”.
Typically artists move to areas that are cheap, they make the area “cool”, then other people want to live there. Graduates gravitate towards these areas, followed by young families and professionals, taking the area through a process of gentrification which typically increases prices dramatically. Pay close attention to areas that are currently have below average prices and are considered “bohemian”. You want to invest before the Starbucks and Waitrose appear!
Avoid areas where there is a large influx of new buildings.
Large buildings going up very quickly can add a huge amount to supply (of very similar properties) in an area which can supress prices. Look for areas with a high concentration of period properties as they tend to hold their value better.