A bit of a throw-away line but it’s so true. Professional investing is about the numbers, the bottom line – Profit! Sure it might be nice to drive past your investment property on the way home but does it really matter? No, if the highest ROI deals are away from where you live and even with a 10%pcm manager fee included into your figures your returns are higher than yes it makes complete sense.
The average house price in the UK is £270k. These would rent for about £900 pcm. Not bad for passive income, right? What if we told you that you could make even more than that by buying and investing smart?
We are talking about the sweet spot of property investment: a property for 70-110k, with a monthly rent of around £450-600. If you spend your £270k budget on 3 cheaper properties, you will make about 50% more monthly rent.
It doesn’t matter if these properties are outside your catchment area: If the highest ROI deals are further away, even a 10%pcm manager fee will bring you higher returns on your investment, so you’ll get more bang for your buck.