Investing
locally VS remotely – the eternal debate.
Should you
invest remotely where properties are cheaper and returns better, but you will
need to travel there sometimes and you don’t know the area that well? Or should
you invest locally where you know the area very well, can easily go to viewings
to manage your portfolio, but properties can be expensive and returns much
lower?
I have invested BOTH locally in London and
remotely. Let me share the pros and cons of investing locally VS investing
away:
|
|
Pros |
Cons |
|
Investing Locally |
-
You
know the area and demand well -
Viewing,
and travelling is easy -
You
can be present and resolve problems quickly -
You
can save the management cost by managing yourself. |
-
Properties
are expensive -
Need
to raise larger capital for deposit -
Lower
returns -
Larger
sum tied in the deals and takes longer to recycle money -
Harder
to find discounted properties in London |
|
Investing Remotely |
-
Cheaper
property -
Higher
returns -
Quicker
to recycle money out -
Requires
less deposit -
Less
competitive than cities like London |
-
Can’t
know the local area as well as if you were there -
Takes
time and money to travel there especially during the initial phase before
your local team or system is in place -
Less
capital appreciation -
Can’t
be present during refurbishment |
So how do you decide which option is
more suitable for you?
Ultimately it
depends on what kind of investor you are and what your end goal is. Both
investing locally and away have worked for many successful investors.
If you don’t
have much capital to start with and feel uncomfortable using hundreds of
thousands of pounds on one property (all eggs in one basket) – starting from
the North could be the way to go.
If you have the
money and don’t want to travel, and are willing to wait for longer to find
deals but get more cashflow per deal, investing locally in the south could
work.
Are you still confused? If you need my
help, book a free consultation with me HERE.
And let’s work out a practical plan for you so you won’t delay your property
investing dream even further.
So tell me –
are you investing locally or remotely?
Emma
xx
