Property investment decisions need to be made with a ‘long-term view’

With the new year almost upon us, now is a good time to think about your property investment strategy and potentially where to buy next.

Whether targeting property in say the north of England where average property prices tend to be lower and rental yields higher or somewhere like London, where prices are among the highest in the world but rental yields generally low, there are a host of factors to consider.

The rental yield is naturally important, but by no means the only issue to take into consideration when making your next property acquisition.

What are prospects like for capital growth? How will recent tax changes impact your investment? Are there any landlord licensing schemes in the areas that you are considering buying in? What are local transport links and job prospects like?

Wherever you choose to invest in 2018, James Davis, CEO of Upad and himself a portfolio landlord, believes that what buy-to-let landlords ultimately need to remember is that a ‘hot spot’ is not a “quick win” and investment decisions need to be made with a “long-term view”.

Davis explained that he is a firm believer that proximity to strong transport links is always “something of a winner”. However, it is not simply a question of distance from key centres, but also the journey time that transport links deliver that an investor should consider.

He explained: “Simply, there are an increasing number of locations outside of London that have become popular with people who continue to work in the capital, based largely on the fact that improved train links can get them in to the city quickly.” 

Davis makes specific reference to Crossrail, for example, and points out that when it is fully open, it will further increase the popularity of certain areas, such as Reading, which whilst already commutable will become even more so with the direct link in to London.

He continued: “This means that destinations even further afield in the South West where there are strong connections in to Reading, are also likely to become more attractive to those working in the capital.

“Similarly, the Javelin trains which travel from St Pancras International and Stratford International to connect to key destinations in Kent have made what were significant distances via the road network, now easily manageable and, therefore, have made many Kent towns increasingly more attractive to commuters.”

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