Where To Invest In Property In 2020 | UK Investment Property Gold Mine Areas


– In the UK the Watford
Gap is often recognised as the unofficial dividing
point between North and South, but should you be looking for
investment properties above or below this line? (slow jazz music) Hi, my name is Tony Law,
from Your First Four Houses. My channel is a little about helping you achieve financial
freedom through property. If this is your first time
here, be sure to subscribe to the channel, and click
that bell notification icon, so that you don’t miss out
on any of the free content that I give you each and every week. So just before we dive in, I
have to make it really clear. These are just my personal
views, and I totally accept that not everybody is
going to agree with them. You must always do your own
really complete due diligence regardless of where you’re
thinking about investing in the UK, and I would encourage you to always be really sceptical, dare I say, pessimistic, when it comes to the numbers. And the last thing I
wanted to say to you is, I will always maintain I
think you should be investing within around about an hour’s
drive of where you live. I live in the South coast
in Poole, for example, and my entire portfolio, give or take, is within about an hour’s
drive of where I live. Now that we’ve got all
that out of the way, is there an argument to be investing in the North or in the South? There’s certainly this
perception, is there not, that the North is for yield,
and the South is for growth? However, according to the
Office for National Statistics, over the past year, there’s no question that house prices have
been falling in the South, and they’ve been rising in the North. In fact, property values
fell by 1.9% in London in the year up to March
2019, but they rose by 3.6% in Yorkshire and in Humberside,
and so I have to say, I am now seeing a few
pretty convincing arguments for investing up North. For example, yields remain higher on pretty much all property
types compared to in the South. There certainly appears
to be a net migration, or population to the North, encouraged by cheaper housing
and cheaper cost of living. There are some bigger
employers moving North. A really great example of this is HSBC, who’ve opened a fantastic new
headquarters in Birmingham. Homeworking, or coworking,
is really kind of growing. It’s making office working less important, and employers do seem
to be encouraging this, because they’re seeing lower overheads as far as they’re concerned. HS2, when it finally appears, will make long-distance commuting a real and realistic thing. With this in mind, by
the way, I would suggest that you consider looking
at towns and stations in particular that’s along
the proposed HS2 route. So what other things should
you really be considering here? Well, firstly, don’t even
think of investing in an area, unless you have local knowledge. If you don’t have local
knowledge of an area, i.e. you grew up there,
or you go there regularly, or you know people who
are there, honestly, I don’t think you should be
investing there, in my opinion. Focus on satellite towns,
and by this, I mean, look at a bigger city, and then look at the smaller towns
surrounding those bigger cities, because they’re gonna be cheaper to buy, you’re probably gonna
get a far better yield, and the people living in those satellite towns
will obviously be commuting into the main city. Look for permitted
development opportunities. You can buy an entire
office block up in the North that’s ripe and ready for
conversion to residential for far less than the cost of building one from the ground up in
the South, generally. I’m generalising there, of course, but I think you get the idea. If you can, have cash ready to invest, because I do think that in 2020, there are gonna be some really
fantastic opportunities. Don’t believe sourcers. I had a conversation with somebody today who had a sourcer really trying to push them hard on the sale. Just do your own due diligence. Ignore what the salesman, no offence meant to any sourcers out there,
the sourcer, shall we say, is trying to tell you about this property. Do your own due diligence. Check out the price. Be really clear and
pessimistic and sceptical about the price, and also, the demand. Don’t take other people’s word on it. Invest where there are big
or new employers going in, because, of course, that’s
only gonna, generally, I’m generalising again here,
but that should only mean an increase in demand for
your investment property. And lastly, always factor in,
in my opinion, zero growth. Would you buy that property
if it wasn’t gonna go up in value in the next five, 10, 15 years? If the answer is yes, if it’s giving you a fantastic cash flow, or you found some other
way to get your money after the deal, that could be
a fantastic property for you. If you would like the 50 point checklist, that runs you through
all the steps you need to take before buying that
next investment property, simply click the link here, or in the subscription box below, and I’ll send it straight out to you. (slow jazz music)

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