Top 5 considerations when choosing the location of your next property investment

Posted on 27 June 2024 Posted in Landlords Advice

Location is key to a successful property rental. Here are our top 5 considerations when choosing your property’s location.

1. Accessibility & Amenities:

Proximity to transportation links such as bus stops, train stations, and major roads can enhance the appeal of a property. Look for properties situated close to essential amenities such as supermarkets, schools, hospitals, parks, restaurants, and shopping centres. Properties located in areas with a range of amenities tend to be more desirable to tenants and can command higher rental yields.

2. Local Market Trends:

Understand the local property market trends in the area where the property is located. Look at historical data on property values, rental yields, and demand. Stay informed about any upcoming developments or infrastructure projects that could impact property values in the future.

3. Demographic Profile:

Understand the demographic profile of the area, including the age groups, income levels, and lifestyle preferences of residents. Tailor your property investment strategy to align with the target demographic in the location.

4. Rental Demand & Future Growth Potential:

Evaluate the rental demand in the area by researching vacancy rates, average rental prices, and tenant preferences. Choose a location with strong rental demand to ensure consistent occupancy and rental income. Consider the potential for future growth and development in the area. Look for neighbourhoods undergoing revitalisation or gentrification. Investing in an area with planned infrastructure improvements or commercial developments can lead to capital appreciation over time.

5. Rules, Regulations, Guidelines and Stipulations

Check out whether the property you are considering is in a conservation area or Article 4 location. If you are thinking of multiple occupancy then you will seriously need to check with the local planning committee if they will even allow you to convert the property to HMO or indeed make any structural changes.

For more information about location considerations, check out this post: Landlord Advice : The Importance of Location