If I had a pound for every time I have been asked this question over the last 24 years of being an estate agent, I would be a millionaire!

I always say the key to the answer is in the question- specifically in the word, ‘desirable’. This word conjures up different meanings to different people.

What do YOU truly want- do you desire the sort of flat that you would like to live in or do you desire a really good rental return.

Put another way; are you thinking of purchasing with your head or your heart?

Unless you are the type of investor that is in the business of buying multiple units on a regular basis, then the chances are you are possibly like me- the sort of person who, despite trying hard not to, still lets emotion slip into your buying process.

One knows what one likes and it is extremely difficult not to make a property purchase emotive. This is no bad thing either- after all, if you like the property then surely your prospective tenants will as well? Also, if it is well appointed and desirably placed in an excellent street, then the capital appreciation, also, will certainly be more assured.

Sadly, if your acquisition is that special, the property will also be that much more expensive to buy. Herein lies the issue of yield, (the calculation of rental return set against the purchase price, to determine the investment value of the property). The higher the purchase price then, more often than not, the lower the yield produced…..but the better the capital appreciation.

Similarly, if you decide to invest in a clean, tidy and well located, but, never the less, ex-local authority property, then the purchase price will reflect the fact that it is a less visually attractive. Prospective tenants will, on the whole, judge a potential home on its’ raw, functional attributes, such as the accommodation on offer rather than whether the property has an abundance of period features, etc . As such, your yield will be that much better and as long as you are happy with a lesser assured capital growth on your investment, then this strategy can work well too- especially if you are happy to retain the property as a longer term hold.

So, in answer to the question, “what should I look for in a desirable rental investment?”

I would suggest that a property investor first asks themselves the question:- am I yield or capital growth driven? The ideal investment in my mind, has a bit of both, but remember, you will never get the perfect equilibrium……unless the property has some other compromise like a lower lease or is in need of complete refurbishment….and advice with either of those two issues will follow in due course!

Remember, there will always be plenty of tempting alternatives to squander ones hard earned cash upon, rather than a rental income. The initial joy of sports cars and ‘blow out’ holidays will quickly pass, but a great rental investment is the gift that just keeps on giving!

If you feel like spoiling yourself or some one close to you, feel free to get in touch, for sound advice and we will guide you through the process to a successful conclusion.