One of the most common questions I have come across, which people (particularly those who are just starting out) wrestle with, is this: Where should I invest?
People will traipse around seminars and conferences, talking to others who are choosing to invest in Blackpool, or perhaps in Newcastle, or maybe in Liverpool, or with the big boys in London, etc.
So, they believe they should invest there because it sounds great… right?
In my opinion, the first question to answer is not so much about where to invest, the geography comes later, but about what type of investor are you.
Active V’s Passive investors
- If you’re an active investor, then the golden rule is as close to home as possible.
- If you’re passive investor, then the world is your oyster, according to your own personal limitations, anyway.
Investing far from home means:
- It’s harder to build the kind of relationships with agents, which builds success.
- There are many disadvantages of investing away from home, including major travel demands, and other time restraints.
- It’s more difficult to intimately know the area, if you’re not in it. Knowing where you’re investing is a critical advantage for preventing a whole heap of mistakes.
- You can’t react as quickly to deals.
- You can’t keep as a close eye on refurbishments.
- You can’t really, intimately get to know an area –
I hear loads of you saying, “But Nick! There are no deals available in my area.”
When you’re actively investing close to home:
There are deals everywhere! As I have consistently proven time-and-time again, with the countless mentorships I’ve offered, and the number of areas, I’ve helped others to invest in.
My golden rule is: Invest within 30 minutes of where you are. Even if you’re in one of the most expensive areas of the UK, there are countless deals within 30 minutes of your area. I guarantee it.
When you’re passively investing away from home:
Location isn’t important! Yeah, I know: Location, location, location!
But, start with finding a partner you know can work with, then check where they are investing in. Then check out the specific deals which appeal to you.
Then step into the investment.
Simply put: Don’t let your location stop you from finding deals.