Choosing A Neighbourhood To Invest In
Choosing the right neighbourhood for your rental property is of vital importance. Make the right choice, and you'll have a regular rental yield for years to come; make the wrong choice and you could be left with an expensive property that's difficult to let.
One of the most common mistakes a new landlord makes is to buy a property based solely upon what they would like for themselves. You may well have financial security and be able to afford the better things in life, whereas your tenants may not have reached that point yet.
If you buy a property in exclusive areas of the city, you'll be able to charge a much higher rent, but you'll also find it harder to get a tenant. Yes, there are wealthy professionals who rent property near to their workplace, but there is fierce competition for their patronage.
You may think that some areas are too run down to be viable locations for renting, but there could be gems in those areas available at bargain prices. Such areas are often home to young professionals who can't afford to get onto the housing ladder yet. Good quality rental properties are just what they're looking for. These aspirational young people can make perfect clients. Bear in mind that social mobility is changing many areas. Neighbourhoods that were once down-at-heel are now on the rise, and the housing market is sometimes slow to recognise it. Never discount a property because of the area it's in without looking at it first. Talk to the people in the area, and see what kind of feeling you get.
Have you considered renting to students? There are more students than ever, and they all need somewhere to live. Letting student accommodations can be lucrative, but because you can have an increased number of people living in your property, be prepared for increased maintenance and repair costs. Neighbourhoods that are near to Universities are a magnet for students, yet the cost of buying a property in these areas can be relatively inexpensive.
Greens Lettings | Letting Agent | London Landlords SE18
To find the ideal neighbourhood to invest in, you need to look at the infrastructure. If you want to attract young couples, then having a good quality school nearby is going to be a major selling point. Similarly, if your property is on a major bus route or near to a tube or railway station, it can make it much more attractive to professionals. Are there attractive and well-maintained shops nearby or recreational facilities such as parks, cinemas or gymnasiums? All of these factors will boost the rental value of your property and make it easier to find a good quality tenant.
It's always worth considering renting somewhere a little further afield. This doesn't necessarily mean at the opposite end of the country, or else you'll need an agent there to look after the property for you. It can, however, be a great idea to rent a property that's away from the city itself.
Travel, particularly into London, is becoming easier, and more and more people are looking to commute. Emerging letting areas are fast becoming convenient centres for people who work in London to live in. You'll notice a huge difference in house prices outside of London and its suburbs, but you'll still find it easy to attract tenants if it has a good transport hub nearby.
Never choose the first neighbourhood you look at, or become fixated on one particular area. Take your time to find the right property, and you'll find it much easier to attract the right kind of tenant who'll pay the right amount of rent. Talk it over with existing landlords or even letting agents such as Greens Lettings. When you find the ideal neighbourhood to invest in, you'll be making things much easier for your future life as a landlord.
Do you have any questions on choosing the right neighbourhood in South East London? If you want to meet with an adviser from Greens Lettings please click here.
Greens Lettings is a property management company based in Shooters Hill, London. As your HMO expert in SE18, we continue to serve places in South East London such as SE2 (Abbey Wood), SE3 (Blackheath), SE7 (Charlton), SE9 (Eltham), SE10 (Greenwich South St), SE18 (Woolwich), SE23 (Lewisham) and SE28 (Bexley) — just to name a few. We are your local online letting agent specialising in HMO tenant find and full management. We offer free consultation and free property valuation. Contact Greens Lettings here.