Ajay Ahuja Blog Post on The Right Location to invest

Where do you think the right location is to invest?  I used to think it was in my home town.  7 years later I was buying in the depths of Glasgow in suburbs I had never heard of but everyone else in Glasgow had if you catch my drift!

I used to only buy in my home town of Harlow.  It was what I knew and it, at the time, could offer me a 12% yield.  Me being the accountant would invest based on the numbers.  Fortunately for me if the numbers did not hit the magic 12% then I would not buy.

It started to become more and more difficult to get a 12% yield.  It was only then did I decide to consider other towns.  I widened my net to Essex, then surrounding counties and then surrounding countries!  I never ventured further than the UK though.

So now I sit on a mixed bag of properties all over the UK which keeps my field manager VERY busy.  Am I glad that I have my portfolio spread all over the UK? Hell yeah!

The reason being because of one rule:

Diversification.

This, simply put, is not putting all your eggs in one basket.  I believe every area will have it’s time.  There will be a point when:

Harlow booms

Glasgow booms

Wisbech booms

Hull booms

Etc.

And I will be there to capitalise on it when it does.  Also there will be a time when:

Purfleet crashes

Stoke On Trent crashes

Aberdeen crashes

And I will be there also to capitalise when it does.  I will buy more and I will have the infrastructure to manage anything I buy.

Now I know my investment strategy is not for everyone.  It scared me enough not to do it when I was young but I GREW UP!  I am glad I did because now I have a robust property lettings business which will provide for me, my family and my family to come.

So when you see a property deal from me, my competitors or wherever try and be a bit more open minded.  Look at the numbers.  Are they your sort of numbers?  Whether it is a minimum yield, monthly cashflow or money in whatever it is please read the numbers.  Location is secondary.  Kirstie and Phil will be majorly disapproving but lets face it – they are TV presenters not a property tycoon like me!

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