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Where to invest? - Coggle Diagram
Where to invest?
Check demand
Check rental demand - using Rightmove follow these steps:
Check number already let - in Filters select 'Include Let Agreed' e.g. 454 - so 30/454 (approx 7%) is Let Agreed already.
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Check (rough) number of rentals - input postcode (e.g. LS4) to view number of rentals in top left corner (e.g. 424 results)
Check sales demand - using Rightmove follow these steps:
Check (rough) number of sales - input postcode (e.g. LS4) to view number of rentals in top left corner (e.g. 32 results)
Check number SOLD STC - in Filters select 'Include Let Agreed' e.g. 78 - so 46 out of the 78 (78 - 32) are SOLD STC.
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Call demand with local agents - letting and sales for rental and sales demand (may say properties are going for more than advertised - so loads of demand).
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Check infrastructure
Jamie York looks for infrastructure in this order: 1. Motorways, 2. Hospitals, 3. Universities, 4. Train links, 5. What's going on there - major companies are based there?
Using Google Maps look at the services available locally - how far to city centre, shopping centres, hospitals, unis, motorways & A-roads, etc
Any big changes - big companies moving there shows - more jobs, improving infrastructure, increased buyer & rental demand, etc - pressure on supply pushes up prices in surrounding towns/areas.
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MACRO
Generally - the more you go North (from South), cash flow :arrow_up:, capital growth :arrow_down:
Jamie York - "If you're looking for a good mix of cash flow and great capital growth, Leeds [is] going to be a great area." / "I focus on Leeds and West Yorkshire because I think they're going to get amazing capital growth" 12 Jan 2023 https://youtu.be/uYVyR2Ywcuc
So look for good mix (cash flow, AND great capital appreciation (Liverpool, Nottingham, Leeds)
Leeds Leeds is a city
growing at a phenomenal rate, population rate 7x London in last 10yrs, 2.7m in Leeds region, large student population, retaining 39% of graduates, GDP £70b (top 5 in UK), SouthBank development (2nd largest in Europe) powerhouse
of Yorkshire and the North of England, UK HQs (Channel 4, KPMG, Burberry, Capita, NHS, First Direct, Asda) city employs 30,000 in banks & building societies - massive rental demand (not enough properties) CityRise Top-Investment-Hotspots-Guide
MICRO
City centres become less available - :arrow_up: city centre investment (e.g. institutions build-to-rent), :arrow_down: affordability & availability to everyday investors.
WSW of city being transformed - traditionally downwind of factories & smelly rivers, housed the workers in terraces. No cheap to buy, high cashflow - before institutional investors move in!
Define where NOT to look - reduce decision fatigue, cancel out areas you're not interested in.
Areas with historically no capital growth (e.g. some areas of NE always been £40k because nobody wants to live there - £50k min mortgage, so only cash), probably little future growth.
Areas with high LHA rates - generally areas with least desirable tenants - use StreetCheck, look at People tab (social grade - look for high C1 - people advancing / developing) and Employment tab (low unemployment, high employment)
Define your outcome - what are you looking for, cashflow, capital appreciation opportunity?