How do you make property investment work further afield?
In 2015, Property Mastery Academy’s Mark Lloyd spoke to Rob Dix at Property Geek about investing in property further afield, and the advice Mark gave is just as relevant today as it was then.
Build a geographically diverse portfolio
Should you invest closer to home or further afield for better returns? It’s a question that’s asked a lot, especially from investors in the south east when they look at property prices in the north of the country.
Mark Lloyd’s first investment property was 240 miles away from where he lived. Why? Because at that time Mark and his business partner Jackie were looking for below market value deals – and they weren’t to be found in Mark’s home base of Farnham, Surrey.
Instead, Mark and Jackie began to talk to the extensive network of contacts they’d built up over the years, including a fellow investor based in the Grimsby/Hull region, which led them to create a small property portfolio in the north east.
Tap into local knowledge
When he looks at properties further afield, Mark begins by talking to investors and reliable letting agents in that area and then doing his own homework by researching on Right Move, Hometrack, etc. He then works out figures and talks again to local investors.
Having a broad network of people that are happy to work with Mark and Jackie is key to their success, and over the years they’ve grown their database of contacts through their training courses and the networking they regularly undertake.
They rely on the relationships they’ve built with people in different regions as they believe you can’t beat local knowledge.
Be pragmatic in your approach
Mark and Jackie may have started by trying to find below market value deals, but they take a pragmatic approach to investment.
As Mark says in this interview, “You don’t have to stick to the same criteria for every deal.” Instead, he assesses each deal on its merits – and his strategy is not solely focused on below market deals.
As well as the portfolio in the north east, Mark has also grown another one closer to home in Basingstoke, about half an hour from where he lives, after considering a number of demographics. Principally, there were some below market value deals to be had in and around Basingstoke, plus the town is also home to a high number of commuters into London.
Always treat your investments as a business
As well as taking a pragmatic approach, you should also remember to treat property investment as a business. Mark applies business principles to his investments and keeps emotion out of his stock selections.
A question Mark asked himself early on was, “Do I want to be a landlord or an investor?” He decided that he was not looking to be a landlord, so he adopted this mindset as a business model and now relies on vital people such as local letting agents to control that aspect of the business for him.
And finally, his advice to prospective property investors: do your own due diligence, talk to fellow investors, find reliable letting agents and build up a network of trusted contacts.
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Dates: 24th to 26th November 2017
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