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