Why Location MattersInvesting in property takes careful planning and consideration to get it right. This involves developing a strenuous outline of objectives and a detailed plan of the path you will take to get there. The strain of this hard work can be eased through working with the right team and embracing an open mind when it comes to advice.
Many factors contribute to choosing the right property and it is vitally important to consider all of them. The market of your property will look for aspects of your property which appeal to them and therefore, you must know your market and their desires - taking this into account - when opting for your investment property.
The location of a property is an incredibly important factor, regardless of the investment strategy adopted. A property’s location can attract a variety of markets as people use the location to influence their decision. There are many reasons why the location of a property impacts a buyer/ tenants decision - these will be explored within this article.
Serviced AccommodationServiced accommodation properties often appeal to those in the market for a short stay on a hotel style night-by-night basis. These properties can attract markets looking for accommodation due to travelling for business, a staycation or the need to be closer to relatives etc for a short period of time.
For each of these markets, the location of a serviced accommodation property is important. The location is important for many of the same reasons and some slightly different reasons. When booking a serviced accommodation property, a guest will aim to find accommodation that is within distance of where they need to be.
Those looking for accommodation for business travel will need accommodation close to their workplace or ideally transport. The goal of business people staying in this accommodation is to make their connection to their workplace/ office more convenient. With easy access to transport guests on business can travel to where they need to be with limited hassle.
Let’s be honest, travelling for business can be boring on occasion, depending on the length of a stay. With this in mind, a serviced accommodation property surrounded by leisure facilities - shopping, activities etc. can sway the decision of someone in the market for a stay at such a property. This means investors choosing a property to suit their serviced accommodation strategy should consider what types of leisure facilities are available to their guests.
Buy to LetBuy to Let property investments attract a target market of renters. This means these markets are typically looking for their home for a period of time which means their surroundings will be important.
Your buy to let property may appeal to a target market of families, which means they may have children. This means properties with schools close by can attract tenants with children. Education can also be important for other tenants, such as those in higher education. Properties with colleges or universities close by can attract new markets for your portfolio, however, these have the potential of being on shorter leases.
Shopping and leisure will also prove important for those in buy to let properties. People often look for entertainment outside of their home, typically for the weekends. With this in mind, properties with facilities such as shopping centres and sports centres within the vicinity may do well. It is important however, to know your market with this as not everyone will find being in the heart of this an attractive trait of a property.
Many tenants chose their home with an element of convenience. How much will the location of the property help their day-to-day lives? People may be attracted to your property as it is close to their workplace or education, limiting their commute time. Meanwhile, easy access and great transport links can also be a fantastic USP of a property.
FlipsPurchasing a flip property is a bigger commitment for your buyer. Your buyer may choose to purchase your flip property with the intention of living in it themselves. This means they are looking for certain factors which appeal to their needs and desires.
Surrounding education facilities can be important to those in the market for flip properties. Those with the intention of purchasing a flip property to become their home hold an importance on their surroundings. Great access to schools/ higher education can sway the decision making of a property purchase.
Much like buy to let properties, those in the market for flip properties, whether they are buying with the intention of using it as an investment or to live in, carefully consider what the property has to offer in regards to transport access. Transport links are important to many as they allow people to stay connected. With access to great transport links people also have the opportunity to ease their commute to work.
ConclusionWhen investing in property it is essential you know your market and their desires. By understanding your market you can demonstrate the best aspects of your property and effectively communicate the USPs of your property.
Strong access to transport links around a property can rank highly on the desires of a tenant/ buyer. This is because transport links allow your tenants to remain connected and often aid them in their commute to work.
For many tenants, close education can be an important factor. Typically, families with children will regard properties which are within the catchment area for good schools. Education is important, therefore, this can settle their mind a little through ensuring their child is given the opportunity of a good education. Surrounding educational institutions can also attract older tenants, those attending college or university. By investing in a property closeby, you hold the opportunity to attract these tenants.
Regardless of the investment strategy you have opted for for your property, each market will hold a desire to be within the vicinity of leisure facilities. People enjoy getting out and about, especially after this year, therefore, having a property with activity centres or shopping centres close by can be incredibly attractive.
Disclaimer: This is information based on our knowledge gained throughout years of experience, education and learnings. This information is open to interpretation, therefore, you must carry out your own due diligence regarding the subject.