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Where to Invest for Buy To Let

Confused as to where to invest for your first, or next Buy to Let property? 

Keep hearing about "gold mine areas"? I'm gonna share my thoughts on where you should be investing next.

When you're considering where to invest, a lot of people talk about investing within a 60-90 minute area of your base. Great if you live somewhere that makes sense to invest, but not so helpful if you live in Belgravia.  

There isn't a right or wrong answer for everyone, so what works for you won't work for someone else. If you live in the cheapest place in the country or the most expensive, that's going to have a huge impact on whether or not you can or should invest locally to yourself. 

Right, let's just crack straight on... 

This video is 5 minutes and shares the basics. Underneath is a handy summary if you're more of a reader than a watcher. 

Generally speaking, the further North you go the more property you get for your money. So if you compare Brighton with Bolton, you might think the agents in Bolton have put the decimal place in the wrong position. 

You can buy stuff up North for literally 10% of the price of the South. 

Hell, I bought a property in Cambridge for £425,000 the same week I bought a property just outside of Chester for £41,500. Both 2 bed terrace Victorian properties in reasonable condition. 

Cambridge definitely has higher average salary than Chester, but not 10x as high! 

The rent on the Cambridge property is around £1,400 and the rent on the Chester property is around £500. 

So for 35% of the rent but for only 10% of the price. Yup, I'll buy the Chester ones all day long thanks. 

BUT.... YOU'RE ALL POOR UP NORTH

If you're a dirty southerner and looking where to invest up North (or just generally want to invest outside of your area), there are a ton of sites you can use to familiarise yourself with the area. 

Spend a few hours over the course of a month and check out Rightmove and Zoopla. You'll start to see properties coming on and off the market quicker in some areas than others. You can use the Heat Map in Zoopla to find where the pockets of higher priced or lower priced properties are. 

You can then flip over to the 'To Rent' page on the property portal and check out what those properties rent for. 

It's a pretty simple calculation to work out ROI, figure it out, or join my group and I'll share mine with you. 

But the quickest way to figure it out is just multiply the rental figure by 200 to see if it stacks up. If the purchase price is less than 200x the rent, then chances are you'll be able to make some money with that property! 

If you are concerned about getting up and inspecting the properties, you've got a few options. 

Pay me to do it for you! If you want I can do a site visit day where I'll go round (with or without you) and view up to 10 houses in a single day to find out which one is going to be the best one for you.

It'll cost you, but it will save a day of your life and let's be honest, I'm kind of good at this stuff, so I'll do a better job of spotting the one on it's last legs or that has some nasty surprises waiting for you. 

Or you can pay someone else to do it for you. You can hire people by the hour to simply view a property and take a camera / camcorder to film the whole thing. It's a bit odd, and you have to let the agent and owner know about it beforehand, but it can be a good way of at least getting rid of some of the definite no's before you waste your time going up to view them. 

Or you could use a sourcer. I'm not a huge fan of these for new investors, mostly because it's the sourcer's job to convince you of how great a deal he's found and then over charge you for the privilege of letting you buy it. 

BMV (below market value) is bullshit 99% of the time. So it's just a sales pitch. Think about it, if you can buy something for £80k and sell it the next day for £100k... why wouldn't you?! 

Anyway, that's a rant for another day. 

NOW WHAT

There's enough in here to at least get started and narrow down your investing area. If you need more help, shout out. 

Post any questions below or over on the Facebook page and I'll get back to you. 

If you want to talk about working together, drop me an email and we can figure out how to get you from where you are now to where you want to be. 

Mostly though, move in the right direction.

Just go and do something! 

Further Reading