What do you think? What's going to let faster? 1-bed or 2-bed apartments?
In 2006 we did a development in Didsbury, Manchester and at the time it was one of the biggest developments we had taken on, 18 units in total – a mix of 2 and 1 bedders.
On completion, the 1 bedders flew out the door. They rented incredibly quickly. The developer was so impressed with how efficiently we worked to move their stock, they offered us a further 9 units.
So this time we took the majority as 1 bedders thinking we would let them quicker.
But guess what happened? Yup, I'm sure you have guessed it already! This time the two bedders flew out the door before the one bedders.
Luckily it didn't matter because when trying to getting a property to let, it's always right price, the right agent, with good investment property management.
Lesson: there will always be a market for both. Your property will always let no matter what type, size, floor etc, as long as the agent is competent, the price is right and it has good investment property fundamentals.
By that I mean:
Are there major transport links? Consider local & international airports, major highways, roads. What about buses and trains? What about the major social & leisure attractions? Major supermarkets, shops, off-licence and takeaways. Playgrounds, parks, bars, clubs, cafes, restaurants, pools and sporting grounds.
What are the local educational facilities? Does the area have junior & high schools, public & private schools and universities. What is the employment potential? Does it have major industries, large employers situated within acceptable travel distance of the property?
Don't get too caught up with things that might be missing from the local area and likewise, don't become blinded by something you really like about an area. After all, think about everywhere you have ever lived. Was it ever the “perfect” place to live? Or was it more an average or above average area and regardless you still called it home? So too will your tenants call your “non-perfect” investment property home. Strike a balance between “analysing” an investment and over-analysing it.
Once I am happy with the macro and micro, I run the numbers and providing they work for me and my strategy, I buy the property and stop the analysis.
Live with passion,