In today’s Property Patter, I will be talking about upmarket properties and why they make a great investment.
First of all, ponder this: the greater the value of a home, the higher the percentage rises in value each year; an obvious reason to invest in a more valuable home.
Another thing to consider is the type of tenant you are looking to attract...
Higher quality homes attract more stable tenants
Now, I'm not saying that a cheaper home necessarily draws in a tenant that's going to wreck your house and ruin your life, but generally, a larger more amenable home is more likely to attract professionals and young families.
With developers nowadays focused on apartments, student lets and over 55s apartments, there is a chronic shortage of family homes.
According to the English Housing Survey, the proportion of families with children living in the private rented sector increased from 30% in 2004-05 to 37% in 2014-15.
With more families looking to rent than ever before, it pays to own a property that will accommodate them. Why? Families with children are much more likely to stick around as they do not like to disrupt their children’s schooling; they are also more like to maintain their home to a high standard.
High-quality houses in prime locations are also likely to spark the interest of the likes of teachers and doctors. People in these professions make very reliable tenants as they are less susceptible to losing their jobs, and are looking for squeaky clean references when they leave.
Also, professionals tend to seek properties that are near to the right schools, parks, restaurants, bars and decent local amenities.
Apartments are not an easy sell
Okay, in a metropolis like London, sure, apartments are an easy sell but when you're looking locally, this is not the case.
Over the years, the Rockett Home Rentals team has witnessed a lot of apartments sticking on the market with regular price reductions.
The reason for this is that apartments tend to attract solely other investors who are looking to drive the price down to get a good yield in return. All in all, it's not worth considering an apartment as part of your investment portfolio.
Student lets are limiting
It's simple: if there is a drop off in student applications or a university starts building their own accommodation, you are going to be stuck with an apartment that you cannot let to anyone but students. Also, if you miss the September start to let, your property will stay empty for a year. I'm sure you will agree that this is a headache you do not need.
If you're looking to buy to let, the best and most hassle-free way to ensure you attract the best possible tenant, aside from choosing the right property manager, is to invest in the highest quality house your budget will allow.
That way you can rest assured that your property will provide a fantastic home for someone, it will be well and truly looked after and in return, you will make the kind of profit you deserve.
I hope this episode of Property Matters has been a help and if you like what you have read, keep your eyes peeled for more industry insights for landlords and tenants - coming soon.