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| Whitehall or Olive Lane? |
Got a call from a Landlord yesterday looking to buy another Renter (he has a nice little portfolio with us already). He wanted to know if we had anything up Whitehall, so I asked him why he wanted it up there?
His reply was quite typical of an emotional thinking landlord, as opposed to what I call a 'numbers' landlord.
He preferred Whitehall because he 'likes it up there', and I have to agree it's a nice area - one of the best parts of town. But the problem with buying in the nice areas is that the properties cost more and in turn the yields are lower, which is fine if that suits your strategy but given he doesn't really have a strategy - other than buying nice houses, opens up another discussion for a different day.
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| Whitehall Area Darwen |
When I explained that we do have some nice decent properties in that area but they will cost more and that the typical yield is around 5% he didn't seem as keen.
So he then asked well what about other nice areas? I explained he would have the same problems up Sunnyhurst and BoldVenture - both equally nice areas.
I suggested he have a think as to why he wanted to be a Property Investor, because most people do it as an investment, and when you invest in something it's generally all about the yield. The better the yield - the better the investment.
I'm not saying this is always the case, or even always the right thing to do, I suppose the other message here is to establish a 'Plan'.
So do you buy a house up Whitehall with a yield of 5% or one on Olive Lane with a double yield of 10%? I'll let you ask yourself this question...
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| It's about the yield, or is it? |
If you get stuck on this one and want to have a more detailed conversation about this, or even some help developing a plan? why not give me a call on 01254 760660 - or better still bob into the office for a coffee.
You know where I am..
Paul@AinsworthLordEstates.com
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