Where you invest in property is critical. This will not only dictate the future success of your investments, but will also affect your life. If you’re looking for successful stress-free investments, buy local. That means operating within a thirty- to forty-minute drive of your home.
This may sound like a tall order especially if you live in an expensive township or an area that lacks demand. However, you would be surprised how many areas of potential investment exist near you.
Long-distance property ownership is possible. However, the distance does place a strain on your management ability. Owning a property that’s far away means you have less choice in terms of how the property is managed and it can increase costs because you have to outsource so much of the work. This can mount up to additional financial expenses, which impact upon your bottom line.
Moreover, when a property is far away, it is impossible to make your rounds and this can create logistical headaches, especially when it involves critical decision making.
These factors should be taken into account when considering purchasing at a distance and my advice would be, unless the property is an exceptional bargain or very special, it is best to stick close to your local area.
Buying local also means:
You already have an idea of the local market by virtue of living in the area. You may not be a property expert, or have analysed the market in detail; however, you will have picked up a good level of local knowledge just by living close by.
By living locally, you are more likely to have a network of contacts you can call when the need arises. Even if you are new to the area, it is likely you will know somebody who can point you in the right direction.
Nearby properties are better managed. You can conduct checks frequently and be on hand to attend to any issues.
Living close to your investments means they are cheaper to manage, as you can often do what’s needed by yourself. Even if you want to employ an agent, the proximity of the property will mean the choice is yours to make.
If you prefer, you can instruct, or carry out repairs yourself, and you can make viewings, or meet tenants and, ultimately, manage the property from your own doorstep.
Buying properties locally is often less of a risk. Properties that are, if you choose, close by can be checked at regular intervals, and any issues that arise can be solved immediately.
As a conclusion, we all know that buying right is just half of the success story, managing it right is another. This advice is just to give you a perspective of what to expect and how to handle it.
This story was originally published on Property Insight.