I’d like to share the pieces of information I gather when doing due diligence on a new area:
- The local population number (you want it to be no less than around 80,000)
- The mix of local employers (are there a couple of larger employers taking more than 100 new people on per annum)?
- The mixture of properties available – a mixture is important for steady rental demand
- The demand for rooms (look at Spareroom as a guide – but notice the low quality of many of them)
- The price of property versus the rental income
- The public transport system and connections
- The connections to the wider region in terms of jobs, transport and partnerships
All these are important factors when deciding where to invest.If you can nail down these facts, and demonstrate a strong demand for high quality rooms, in a place where there are good opportunities, and connections, you may have found your perfect investment area!
Are there other factors that you think I’ve missed?