We have a lot of clients who, in their initial conversations with us suggest they want ‘as many bedrooms as they can’ for their budget. And this seems logical – right?
When you bought a home for yourself and your family you probably did the same, space is valuable.
Equally, if this is just a personal choice or specific strategy, our specialist will help you do this while giving you the stabilizers and boundaries to keep you protected in your choices.
So why is starting with the size of a property considered a poor strategy?
To look at this let’s take it to the extreme.
Why are you investing in the UK? Because it’s one of the lowest risk investments, with consistent returns. It continuously grows, there is a supply and demand issue pushing prices up.
If the size is important, there are much bigger available at your budget in another country. Equally, in England, while overall it performs exceptionally well on the world stage. There is of course areas with zero government investment, massive unemployment and very cheap property.
Even in the best cities, take Manchester as an example. Overall performing very well, but there are areas that are underprivileged and have property types that will not grow in value.
Never invest without undersupply, over demand, growing wealth and affordability in an area or you have a high chance of being burnt.
The point of all this is, this is an asset you are investing in. This is not your own home it’s your future money. Sometimes we have to forget that it has doors, windows or a roof. Take the emotion out and look at the numbers.
The most successful investors work off spreadsheets, not images.
You have to look at yourself and decide whether the number of rooms is an emotional decision or a financial one. If a 3 bed at the same price delivers a better return than a 1 bed, buy it.
Equally, if the 1 bed delivers more than the 2,3, or 4 bed over the period of time you are planning to own it for, that is the investment.
The final point to make on this is in reference to our video called ‘Are city centre properties the safest investments?’ which you can find on our website or by looking back in these videos. Sometimes getting into the safest and highest returning locations means you will have a smaller property than in the outskirts.
If this delivers more returns, with more occupancy, your life will likely feel a lot more relaxed!
Get more information by contacting one of our specialists at Baron & Cabot.