What will be your primary driving factor in choosing an investment, will it be the investment type or the investment location.
You choose between these two to narrow your search field. The more specific you get about what you are looking for, the more focused your search will be.
Choosing by investment type:
With this option, you will be focused mainly on getting the type of investment you decided on. For example, you say you will concentrate on three bedroom apartments that are ideal for long-term rents to families. Primarily focused on properties with at least two bathrooms, a large kitchen and some outside space. You could narrow it further by only looking at projects that offer private/private communal gardens.
Limiting factor: only some areas will have the type of investment you want for the budget you have allocated.
Choosing by investment location:
With this option, you will be focused mainly on finding suitable investments within a particular area. Often this is a good option for people who want to look around the area where they live as they tend to know and understand this location better than others. Some focus on the areas between their home and work so that they don't have to go out of their way to inspect the property from time to time.
Limiting factor: depending on the area you have selected, there is a potential for having very limited or none of the initial investment type you had in mind within your determined budget.
Both these options should feed into each other, but you have to choose one that you allows you to feel most comfortable.
The option that most start out with is a blend of both, but then your search parameters get very wide. This option can work if you are willing to put in the time and effort to find suitable investment opportunities or if you have an excellent retained agent who will do the legwork for you.
Now that you have established what you are looking for and where you have set up your budget and your outcomes, we can proceed to the next step and set up your team. Look for that in our following post in this series.
If you have any questions about how to best decide on investment type and investment location, please comment below or contact me directly for any questions.
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