Why Location is Key to Buying an Investment Property

If you are considering buying an investment property in south-west London, location is as important as ever. From schools to public transport links, find out what you need to look for in a great investment location.

Everyone knows that ‘location, location, location’ is the mantra when buying a residential property. While the location is essential when buying somewhere to live, the same goes for buy-to-let properties too. As a new landlord, you’ll be looking for high rental yields, minimal void periods and capital growth over time.

You may not be able to predict what will happen to house prices over your period of ownership, but by choosing wisely, you can make the most of your investment. Look for a property in the best location for your budget and research the area, thinking about how attractive it will likely be to potential tenants.

When deciding on a location, it makes sense to have the type of tenants you are targeting in mind. If your budget will only stretch to smaller apartments, your target market probably isn’t families, where schools, parks and nurseries are a big priority.

If you’re looking at young professionals, you’ll probably want a flat close to amenities and nightlife and handy for good transport links. You might also want to consider whether it is close to a local employer – a global company, hospital or university, for example.

Find out more about the people who live in a neighbourhood and the average rent they pay. This will help you get a good idea of whether you’ll achieve the return on investment you’re looking for.

To help you decide if a location is right for your buy-to-let project, here are some things to consider:

1. How is the traffic?

Is the road busy at different times of the day? Going back a street from the main road may mean the property will hold its value better and be more attractive to potential tenants.

2. Check for planned regeneration

Regeneration schemes are part of the London landscape, so do your research about any happening in the area and think about the impact, good and bad. Will the plans bring better facilities or mean noisy building works for years to come that will deter renters?

3. How are the schools?

Houses close to outstanding state schools will always be popular with renters and retain their value. If you’re targeting families looking at popular primary and secondary schools, find out how close you need to live to have a realistic chance of a place.

4. What are the main attractions?

Look for rental properties with good amenities close by. Attractive bars, restaurants and shops make a place appealing to your target tenants. Factors like convenience stores, neighbourhood pubs and coffee shops can also give a particular street the edge.

5. How is the transport?

Easy access to good transport links is always a bonus. Be aware of the property’s walking distance to tube or train stations and the nearby bus routes.

6. Is it up and coming?

It’s wise to look at the various developments in the neighbourhood to try and understand the direction it’s going in – are new properties, businesses and projects popping up in the location or are there negative influences on the community putting people off? It’s great to have the inside track on this with people who know the area so that you can make the right investment decision.

If you’re considering purchasing a buy-to-let property near Tooting, Streatham, Clapham or Balham, we’d be happy to discuss the merits of different locations and share our many excellent properties. Contact us today to find out more.