Are you an investor who lives in a real estate market that has no shot of cash flowing ( London) ?
Are you an investor hoping only for capital appreciation?
Are the cap rates in your market bordering on ridiculous ( London) ?
If so, it may be time to begin to expand your horizons and tap into different markets. Personally I went to Manchester because the yields are much higher. I feel there is much less risk and much more complete upside…both from capital appreciation and from monthly income.
It is said that a journey of a thousand miles begins with a single step, but if that step is not in the right direction, then your destination will be completely way off base.
We have been selling our properties to investors from Dubai and Saudi Arabia…plus some crowd funding sites have taken interest in our properties due to the high yields.
Some great questions to ask when investing in an area
What is the job growth?
What is the population/household growth?
How many new units have been built over the past three years?
How many construction permits have been issued?
Are properties listed or is it a broker driven market?
How many listings do you currently have and what have you recently sold?
What is the typical size of a deal in your market?
Who are the major employers?
Are there any barriers to entry in your market?
Who is currently investing in the market?
How are these deals being financed?
Where are the B and C properties located?
Can you identify the path of progress in your market?
What is the per-unit cost of an apartment?
What is the vacancy rate in the market?
What has the rent increase or decrease been over the past three years?
What are the cap rates for specific asset classes in the market?
Is the market a cash flowing market or poised for capital appreciation?
What is the average age of the properties?
Does the market employ RUBS (ratio utility billing)?
What are current rents for various unit mixes (studio, 1-bed, 2-bed, 3-bed)?
Can you recommend a management company?
What are the fees charged by a management company to manage a property?
What is the affordability of homes in the market?
Can you recommend an insurance company?
Can you recommend a mortgage broker and a bank?
If I can help you to invest in Manchester – Send me over an email…
Cheers…
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