In this episode, Nick delves into the essential factors to consider when choosing the right area for property investment in the UK. He emphasises the importance of rental demand and yield, suggesting a minimum gross yield of 7-8% to ensure a buffer against changing mortgage rates. Nick discusses the significance of local amenities, transport links, and the quality of schools in attracting tenants. He also highlights the potential for capital growth through property renovations and the impact of regeneration projects on property values. 

KEY TAKEAWAYS

• When choosing an area for property investment, it's crucial to assess the rental demand and ensure a gross yield of at least 7%, ideally aiming for 8%. This provides a buffer against potential changes in mortgage rates or personal circumstances.

• Areas with strong job markets, good transport links, and desirable amenities (like schools and parks) are more attractive for tenants. Proximity to local shops and services is also important, with a preference for locations within a 10-minute walk.

• Look for properties that allow for value addition through renovations or improvements. Understanding the local market and comparing sold prices of similar properties is essential to ensure you're making a sound investment.

• Investing in areas undergoing regeneration or with planned infrastructure improvements can lead to increased property values and rental demand. Keeping an eye on local development plans is vital for long-term investment success.

• Consider the overall quality of life in the area, including local amenities, nightlife, and green spaces. Areas with good schools and low crime rates tend to attract long-term tenants, which can enhance rental income stability.

BEST MOMENTS

"You need that certain buffer because if mortgage rates change or your situation changes, you want a little bit of a buffer in the rental."

"You want to look for areas that are under regeneration or having regeneration planned for them. Planned developments, new housing, new shops, new factories, et cetera, that will all boost rent demand."

"If there's high unemployment, then it's most probably not the best area to invest in, unless you're looking at social housing."

"You want to have that diversity of jobs for people to apply for. Are these areas, have they got growth potential?"

"You should be aware of local regulations and landlord tenant laws, including sort of rent control, eviction procedures."

 

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HOST BIO

Nick is an award winning property investor, voted Fastest Newcomer 2022 by Premier Property, and is an accredited Retrofit EPC Assessor. He sources and renovates properties for himself as well as other investors. While doing this he has developed his own systems for efficient investment, such as developing his own methods to save time when viewing properties and estimating market values and potential returns, costing out renovations.

He spends three months of the year abroad and while there continues his business with use of modern technology and his proven systems.

Location freedom has always been his "Why" for being a Property Investment and has now reached his ideal of the colder months spent in Thailand and the rest of the time in the UK, all while continuing to run his business