hi guys, who's buying props far out of their area as well as on your home ground and what's the pro and con's about buying out of area?

i ask because i'm reviewing my strategy and can't decide whether it's a good idea or not to go further afield?

Your feedback would be appreciated.

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Hi Saffet
So far i have purchased property outside of my area, mainly because my area is quite expensive and it is hard to get figures to stack as currently rental increases seem to be lagging behind the price/mortgage increases

I currently have 4 completed properties and 8, including 3 overseas, in the buying process. The closest is 70 miles away the rest are alot further away.

Pros - property prices are cheaper
rentals cover the mortgage

Cons - It is not always possible to view a property before you commit to buy

and then there are lots of other issues to consider such as
who is going to manage the property, do you have any contacts in the particular area, how are you going to find tenants, are you happy relying on a valuation for the condition etc,etc

I do try to visit areas and make some contacts as a backup for any problems that may arise but you have to rely on trust from vendors, EA's etc

You say you are thinking about changing your strategy so also think about your stratergy to risk aswell as although it is rewarding there are many pitfalls

Regards

Dawn

Saffet,

I buy in 3 areas:
Manchester (coz I live here). Pros - I live here. Cons - can't find good deals.

Durham. Pros - easy to get rents to stack, good agent. Cons - miles away

Canary Islands. Pros - I have more control over the whole process than I do in the UK. No serious competition. I am selling "ready made deals" to other investors. Weather is fantastic, people are great fun. Cons - took me eight months, six trips and about €25K to set up a company for this purpose. It's a long way away.

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