The main problem with finding the best properties in the UK to invest in for cash flow is the amount of time you will need to spend on research. Of course if one property were to return £200 more a month than a similar property this is going to be the more favourable investment. But the work needed to find properties like this would be no small undertaking.
Here we want to provide you with a shortcut. The things that you can look out for that will drastically reduce the amount of time you will need to spend to find a good cash flow property. In order to do this you will probably have to move out of your comfort zone but the returns will be worth it.
Don’t Restrict Yourself to just Local Properties
There is a tendency among UK property investors to purchase properties in areas that are local to them. There is a belief that local property purchases are easier to manage. If you intend to become the landlord that does everything to keep the property in good shape then this is certainly true.
But you are probably missing out on some great cash flow opportunities if you just go local. Experienced property investors will tell you that the best locations to invest in property in the United Kingdom are very unlikely to be around the corner.
Take a broader view and be prepared to purchase a property anywhere in the country where the right opportunities exist. The latest city to top the property hotspot list is Manchester. London has fallen down the pecking order and now trails Birmingham, Liverpool, Leicester, Portsmouth and of course Manchester among others.
Some London Boroughs have been hard hit lately with house prices falling and in some Boroughs they are on the rise. The price of renting is following a similar pattern. So consider the whole of the UK when you are trying to find the very best location for good cash flow returns.
What’s happening in Local Economies?
OK so now you are thinking about the whole country, the next step is to find local economies that are strong and that have good prospects for the future. Local authorities have websites and you can browse these to find out the information that you need. There are also trade group websites that you can take a look at.
Find out who the major employers are in the area and whether or not they are recruiting. What kind of industries are they in? Technology industries are good. What are the local wage rates for the area and do these companies offer wages in excess of the average? Also find out from the local authorities about their infrastructure plans and budgets.
What is the current transport infrastructure like in the area? Are the crime rates low? Try to find areas that are not totally dependent upon one major employer. All of these things make an area desirable and the cash flow returns on property investment should be greater.
What are the Demographics of your Prospective Tenants?
Have a look at the local tenant market and the type of tenants that you can expect. Is the rental market mainly comprised of young professional people, or is it dominated by families and couples? The needs of each of these groups will be different. The young professionals will probably prefer to be closer to the city centre whereas couples and families will prefer to be further away from the centre.
Talk to Local Agents about Rent rates
Very important is to find out what the going rents are in a location. So get in touch with local agents to find out. You can also do a search of property listings in the area online. Position yourself as a tenant when you talk to agents as you will get a much closer idea about the real rent rates that way.
Partner with CPI for your Next Property Investment
There are some useful tips in this post about finding good cash flow properties but it will still take a lot of hard work and persistence to get the right result. If you partner with us at CPI in our “hands off” property investment program then we will do all of the hard work. Find out more today by contacting us.