It seems like everyone has their own ideas about what makes a good investment property. Some secrets work and others don’t. One common thread is that some areas attract a much larger number of investors than others.

What characteristics attract people to invest their money in these areas? Is there anything investors tend to avoid? While it is hard to generalise, there definitely are things to look out for when deciding where to invest.

Invest in the best

We think any potential investment property should tick a number of boxes not just for yourself but also for prospective tenants.

The oldest cliche in property still rings true when buying as an investment, location is paramount. Look for investments that are close to shopping, schools, hospitals and recreational facilities, and if they’re in walking distance, even better. Tenants must be able to get to work as quickly as possible, so access to motorways and railway stations are other valuable features to look for when buying an investment.

Smart investors take this a step further and bank on history repeating itself as they look for areas with growing populations, many of which have robust education and transport planned for the future.

One of the major reason people continue to invest in London is because any buyer will (depending on budget of course) generally have a blend of structures, giving you more choice when it comes time to invest. Whether it be freestanding houses, mansion blocks, conversions, new-built apartments, a big city can offer ways to add diversity to your investment portfolio.

Buyer beware

The big negative to look out for is a glut of rental properties in the area.

Areas with low vacancy rates are quite obviously popular with tenants and therefore investors, but conversely, a suburb that has a high vacancy rate can give you a pretty clear indicator about whether or not it is a good place to invest.

This is where your research plays a crucial role – check as many websites and speak to a local agent as well.

Expert investment advice

We often get asked (the inspiration for this article) what key piece advice we would give to would-be investors trying to determine whether a particular market is a good place to invest. Our answer;

Critique potential investment locations from a tenant’s perspective: a potential tenant will look for a place where they can set up a happy and stable home. Thinking like a tenant will go a long way to helping you find a better investment property and a better tenant too!

It goes without saying that some areas are better to invest in than others, and the better ones can appeal to particular demographics. However, to sum up all o the above, always remember; the best investment suburbs will always have a combination of key factors – such as location, transport, infrastructure and investment/development.

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If you’d like to discuss your property needs further, please don’t hesitate to get in touch with our team today! Call us on 0207 723 8082 or email info@keypropertylondon.com