Why location is still key with buy-to-let investing

Location is almost always a factor when buying a home for yourself to live in, but it should also be an important consideration when choosing where to invest in buy-to-let property.

Location often determines the value of a property. For example, if a property is in a remote location, is not very accessible, is not near any transport links (let alone fast transport links) nor within easy reach of good schools, shops and amenities, then this will lower its value.

Likewise, if a property is in an area that boasts fast and reliable transport links, superb amenities, local attractions and easy access to hospitals and schools, then you can expect that property’s value to remain strong. The value of a property is only so much as someone is prepared to pay for it.

For a buy-to-let investor, it’s all about capital appreciation, high rental yields and low void periods. Value buying is crucial, as it’s all about maximising investment returns and minimising risk, while ensuring a secure rental income. But before you settle on buying an income property, you will need to do your research. As a buy-to-let investor, you have to put your business hat on. You have to think strategically about where to invest in property. If you do this, you’re more likely to maximise returns.

When it comes to location, location, location, you should bear the following in mind:

Look beyond the high street to the side streets

Properties on side streets, or quieter streets where there is less traffic, often hold better value than those on busier main streets, especially in London. Look for quieter areas which are still well-connected in terms of transport and amenities.

Look to areas where regeneration is taking place – or is going to

What upgrade or redevelopment schemes are being carried out? Are new transport hubs being developed? What is the local council’s future regeneration plans? When choosing where to invest, you need to think in the long-term.

What are the transport links like?

This is crucial, especially if your target tenant is a young professional looking for a fast and easy commute to work. Existing transport links should be sound, but also consider whether there are any regeneration schemes planned for the future to improve local transport links.

Look for good school districts

Many families are drawn to a area because of its proximity to good schools. This is one of the main criterion for families searching for properties in Fulham. Fulham is known for its strong selection of nursery, primary, secondary and public schools, and this is a key factor in driving renters, and especially buyers, to live in the area.

What are the local attractions like?

Is there a large park for residents to enjoy? Are there cultural attractions nearby? Are there plenty of places to eat and drink? Are the amenities and shops good? A tenant will most likely want to live near basic amenities, and have a park, a pub and restaurants on their doorstep. So, as an investor, look to buy a property which offers lifestyle options. By buying a well-connected property you can expect capital growth and higher rental demand