Choosing a property location

by Readers Question

10:18 AM, 11th November 2013
About 6 years ago

Choosing a property location

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Choosing a property location

My buy to let property portfolio is within three miles of my main residence but I would venture further out. My main concern is that I won’t know other areas as well. Choosing a property location

In the past I’ve looked at Rightmove to understand how much properties can be rented for and how many have been let recently. Also, whether its close to a mainline station, town centre and access to motorways for commuters.

With living in the south, places are more expensive and therefore require a bigger deposit.

What are the key things other landlords/investors research when identifying new opportunities with limited knowledge on location?

Thanks

Paul



Comments

Mark Alexander

10:22 AM, 11th November 2013
About 6 years ago

Hi Paul

Please take a look at the Property Research Tool the article we have written about we are in the process of developing >>> http://www.property118.com/property-research-tool/44395/

The more you know about the area the more informed your decision will be.

Comparable prices historically, what's on the market now, crime rates, schools, bus routes, healthcare services etc. etc. etc are all to be considered. The list of resources referred to in the linked article above will give you some idea of the research we recommend.
.

Will Ogden

10:48 AM, 11th November 2013
About 6 years ago

Hi Paul

Check out http://www.dontbettolet.com. I created this tool to give a quick idea of possible gross yields for different parts of the UK. It's continually updated from Zoopla data.

Will

Jerry Jones

10:53 AM, 11th November 2013
About 6 years ago

While high yielding Northern terraces are great for income (and I am sure the same applies in many Midlands locations too), be very careful of buying in a cheap area close to where the council are introducing Selective Licensing. My experience in Middlesbrough is that all the trouble moved away from the newly licensed area and into the place where I have two of my portfolio. Both are empty, it is very hard to find and keep acceptable tenants who will be prepared to live there, even among smoking LHA claimants with pets! Oh, and one of them has been comprehensively burgled when void, as described elsewhere on P118.

My advice is to find a competent and proactive local letting specialist agent (NOT the letting department of a sales chain) and take their advice on where in the town will rent well while still being relatively cheap.

Sue P

11:27 AM, 11th November 2013
About 6 years ago

Reply to the comment left by "Will Ogden" at "11/11/2013 - 10:48":

Great idea Will, but I can't get your site to work for any of my local postcode areas.
Does it update for the whole postcode, or AA1 1** etc?
I can't get anything in Lancashire to work at all.

If I'm doing something wrong please let me know as it seems like a great idea.

Thanks

Paul Baldry

11:46 AM, 11th November 2013
About 6 years ago

I would first look at what you want to have in 10 or 20 years time and work back from there. High yield Vs Capital appreciation - North Vs South - Buy to hold Vs Buy to sell etc etc

I have bought exclusively in the North-East (Northumberland) where have high yields (10%+) and a permanent number of long-term tenants can be found. I have found the market to be strong with the core tenant market will on the whole never buy their own property, even when the market turns.

I have since opened a number of offices to manage my own and others properties but have never lost the urge to keep buying and see the market not only from the sellers side but the buyer's side too.

Will Ogden

12:01 PM, 11th November 2013
About 6 years ago

Reply to the comment left by "Sue P" at "11/11/2013 - 11:27":

Hi Sue. The postcode finder needs the whole postcode. I tried the postcode for Lancashire County Council (PR1 8XJ) and it worked OK. What postcodes are you entering (if you don't mind sharing?).

Sue P

12:31 PM, 11th November 2013
About 6 years ago

Reply to the comment left by "Will Ogden" at "11/11/2013 - 12:01":

Thanks - I have had another go - I get mostly 0% on the areas I am currently in (BB6 to PR2) I guess that's because they are villages rather than town centre so not too many property for sale maybe?

It would be great if you could put in a town and get the % on that basis rather than on a very specific postcode, zoopla lets you search 1/2 mile, 1 mile etc from the town or village, is this on your 'to do list'?

Localy not all agents use Zoopla, around 25% only use RightMove, so I guess that could be part of the problem.

So, interesting site - worth a look out of interest, but not enough to really help a buying decision.

Will Ogden

13:10 PM, 11th November 2013
About 6 years ago

Reply to the comment left by "Sue P" at "11/11/2013 - 12:31":

Hi Sue,

Yes where there is 0% showing it's likely there are too few properties to make an estimation. It's on my list to alter the algorithm to alter the sample area size based on density of houses...as for cities it works like a charm, but countryside causes issues. And yes if the data isn't on Zoopla in the first place it won't be on the site.

16:33 PM, 11th November 2013
About 6 years ago

Hi Paul

Here's a property research tool that's up-and-running - give it a try: http://www.exeterpropertyinvestment.com/uk-property-research-tool.html

Regards
Dave

Mark Alexander

17:03 PM, 11th November 2013
About 6 years ago

Reply to the comment left by "Dave Webb" at "11/11/2013 - 16:33":

Thank you Dave, as you know, it was your Research Tool which inspired us.

Thanks for supporting our plans to take it to the next level. In the meantime I've been using your version pretty much daily 🙂
.

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