Choosing an Investment Location
Ideally, all investors want the perfect combination of easy affordability, strong demand, excellent yields and rapid capital appreciation. No destination can absolutely guarantee such returns but one can look for some important indicators. We’ll look at some of these.
PROFITABILITY & OWNERSHIP
Professional investors still recognise the important financial advantages of bricks and mortar investments; the possibility of earning a regular rental income while also enjoying steady capital appreciation.
REGIONAL DIFFERENCES
In high-performing markets such as the Midlands and many parts of the North, investors have been much happier to build their portfolios.
RISING RENTAL PROSPECTS
Total rental stock has shrunk in the last two years, and if rental supply starts to lag even further, then in a free market, increased rentals are an almost inevitable result.
DEMAND & RENTAL RETURNS
House building has failed to keep pace with demand for many years, and the Covid-19 lockdown has only exacerbated the problem.
IMPLICATIONS OF COVID-19
It might be responsible for a short term slowing of house price growth, but with falling rental supply, rental price growth seems likely to continue.