“How can I find a property which is going to make me money?”
That’s the most common question I hear from people wanting to get into buy to let.
Finding property to buy is easy – there are plenty on the market for sale. But, finding decent property to buy which will make you money is the hard part. And that’s the gem which everybody is after.
The truth is, it comes down to the bare facts: research, research, research – and a dash of luck!
Making money from property
Making the numbers stack on a property investment is a difficult balancing act. People often overlook the time required to find the right investment. Note there the use of “right” investment. What this is depends very much on you, your life, your budget and your needs and wants now and in the future.
Investors have different goals and it’s important you take some time to review what you are trying to achieve from investing in property. Is it capital growth and a lump sum in the future you are after, or a monthly income which will pay the bills now? Understanding what you are trying to do is critical to helping you get where you are trying to go.
Investing at a distance can pay dividends, but it’s risky
Recently, I have been contacted by a number of people who are starting their buy to let journey by investing in property hundreds of miles away from where they live. Tempted by the cheaper prices and attractive rental yields on offer they are snapping up these deals. Now, investing remote from where you currently live can be a good investment strategy – and it’s one I have used myself. But, it is not for everybody and it’s best to have a good amount of experience (and a strong network) under your belt beforehand.
In many of these instances where beginner investors have bought far from where they live, the property investments have not worked out as they had planned. They have found the properties difficult to manage – even though they had instructed agents – and the allegedly mind-boggling rental yields have yet to materialize. Although, a sizeable amount of stress has surfaced!
Property is not a passive investment choice. Properties and tenants require care and attention if you are to yield any sort of success. This is why when investing in property it’s best to keep local as this will minimise both your mental and financial stress in the long run and make the property a hell of a lot easier to manage!
“Ah, but the property prices local to me are too high!”
Local doesn’t have to mean right on your doorstep – but it should mean easily commutable. That’s a subjective term, but personally I reckon a 20-30 mile radius (unless you live in Central London where it’s more like 5-10 miles) is easily commutable and do-able in under an hour.
Try it now (well, after you’ve finished reading this); type your home postcode into Rightmove and Zoopla and change the search radius to 20-30 miles. I’d be surprised if you’re not surprised by the number of properties on offer when you extend your search. Areas you don’t know, hadn’t considered or maybe some you had completely forgotten about will yield up plenty of opportunity potential.
You just have to look.
Your investment rainbow could well be sat right on your doorstep…or at least just down the road!