One of the questions we are asked is where to invest, and the only answer is; it depends.
Our investment area is where we live. Even so, it fits the criteria of a good rental area. • High rental demand • Good transport links • Good schooling • A few major employers • High street and local shops • Open green parks and spaces, with plenty of walks • And by the sea in a historic area. The last 2 items on this list became even more important during the lockdown when many were taking the opportunity to have an hour of daily exercise outside. Studies have shown that outside green space and the sea helps mental health and depression. Going forward, perhaps this will remain a necessary part of life.
The standard buy to let has always been our focus, and this fits into the area well.
Then it is looking at the ROI (return on investment), whilst we do not have the high percentages of some areas, there is capital growth. This means every few years we can refinance to release funds.
Having said all of this, we also own a block of flats in South Wales, which is out of our area. The ROI is 14% when there are issues we have with this property we rely on others to resolve and the capital growth does not increase much over the years.
This is why an area or strategy needs to be decided from the onset, from then onwards work out what fits