Local or long-distance property investments: the right option for you depends on multiple factors, as you might imagine.
If you choose to be a hands-on long-distant landlord and manage your properties yourself, you will have many things to consider. For example, will you be prepared to spend time and money visiting your properties? It will be your responsibility to select trustworthy tenants. You will also have to build a network of local tradespeople, such as plumbers and electricians, who can handle any emergencies which may arise. You will still want to occasionally visit your properties and let your tenants know you have their interests at heart, and arrange the best way to keep in touch with them – telephone or email usually
However, investing in a property or properties away from your locality could be worth the inconvenience of long-distance management.
Why choose a long-distance property?
There are two reasons for investing in long-distance properties:
- if you live in an area where the property will not yield the profits you expect, and you can afford to invest in a locality with higher property values.
- if the property in your local area is too expensive for you to invest in. Seeking cheaper areas away from home will therefore be best.
Of course, the best situation would be to invest in the area where you live. If the properties in your locality will yield the rental returns you expect and you can afford to invest in the area, then staying at home and investing locally would be the best thing to do with your money.
However, you will still have to manage the property and make sure you select acceptable tenants while building a network of tradespeople who you can rely on when emergencies arise. In fact, you will have to do everything you would have to do with a property situated miles away from where you live but without the travelling.
So, the answer to the question does depend on your circumstances and the area you live in. However, it is always important to take professional advice whenever you plan to invest in property. Seek the advice of people who have knowledge and experience in property investment in the areas you are thinking of investing in.
LDG specialises in property investments – residential and commercial property – in the West End and Central London. Call us today and let us help you find the right property deal for you.