When investing in property it is important to know the area you are investing into as well as the requirements of the property. According to National Landlord Association (NLA), the majority of landlords are now considering to purchase future properties within their own local area. Over 75% of private residential landlords have stated their next property purchase being closer to home, or at least located around the area in which they currently live in. Taking more of an interest in areas that they are familiar with and know, shows that landlords can provide a lifeline for the growing demand of local housing within these areas.
NLA chairman Carolyn Uphill, states that “local investment in housing is essential if towns and cities across the UK want to attract people and business to the area. The private rented sector (PRS) is growing at a steady rate but we still need further investment in housing if tenant demand across the UK is to be met.”
You want to be investing in property in an area where there is high demand. For example, in Coventry there currently is a population of around 329,800 and 134,780 properties. Even if we were to invest in 1% (1,347) of the properties within the city, that would still leave 133,353 for others to buy, live or invest in, and still give us enough supply. Personally, I have always sourced properties within the local Coventry and Warwickshire area. Through growing up in Coventry it is an area I am very familiar with, and by sourcing properties here since 2008 I feel I can pin point key investment areas where I know properties have previously done very well. It has allowed me to build good relationships with local estate agents, builders, landlords, solicitor and like-minded others.
For example, I have built up a good relationship with the council and are now able to liaise with them in regards to finding tenants and properties. Recently, while I was finding occupants for a three bedroom property, I was informed by the council that they were in need of properties to house families of four people. Due to the property being big enough to convert one of the rooms into a bedroom, it was able to house a family of four. Because of the relationship I had previously built with the council, I was made aware of this need and now the property’s Return On Investment is significantly higher than what it would have been had it housed a family of three. These principles of knowing the area and current demand also applies to the private rented sector as well as working with the council. These are the kind of opportunities you would potentially miss out on if you decided to not stick to your own gold mine area and build good relationships with those in it.
- Peter Iwaniszewski
Some of this information has been taken from: