How many times have we heard the term that successful property investing is all about 3 things: location, location, location? I will refer to 3 aspects of this principle as the 'STA checklist' here. So what does this 'STA checklist' actually mean in practice?
This news article's main focus is on school catchment areas and illustrates how renters will seek out properties that lie within a successful school's catchment area and pay a premium for doing so. So, one of the obvious factors to consider in our location 'STA checklist' is the properties proximity to a decent school (note: not much use for a studio flat, better for a 2+ bedroom family property). S = Schools
There is also brief mention of proximity to transport links - which we can describe as the second factor to look at in our location STA checklist. In London, this could mean distance from a tube station. There is an old adage for inner London commuters of being within a 10 minute walk of the nearest tube station, especially in Underground zones 1 & 2. But due to the rising prices in these areas, other areas are emerging as potentially attractive also, such as links to the DLR, London Overground and zone 3+ stations for example. The principle of being within a reasonable walking distance of a station still holds true however.
Outside of London, mainline rail, bus and motorway / main trunk roads are the equivalent thing to look out for. For example, I used to live in Berkshire and noticed that there was a fast train connection of just 20 minutes from Maidenhead to Paddington whereas the connection from Burnham (actually closer to London) was around 35-40 minutes. London commuters could therefore save on their commute by living slightly further away in Maidenhead than they would in Burnham, so keep this in mind. Similarly, Maidenhead sits close to the M4 and the M40 motorways, so travel across the Thames Valley, around the Home Counties and to the Midlands for longer-range commuters or workers that need to travel to meet customers, as part of their work was also easily accessible. These factors would make Maidenhead an attractive place to live from a transport links point of view, which should ensure reasonable rental demand.
The same situation will exist in many other areas of the country also, so bear in mind the transport links when evaluating an investment opportunity (including all public transport both existing and planned). T = Transport
Finally, in my simplistic STA checklist would be amenities - shops, restaurants, leisure and social services (e.g. hospitals). People like to have good access to all that they need or want to support their lifestyle and other support needs. A 24 hour supermarket, a multiscreen cinema complex, a modern shopping centre, a choice of eat in or take away food establishments & pubs all add to the desirability and for some access to a good hospital may also feature. So make sure you are familiar with the local amenities that are easily accessible to ensure that your property is located within a good range of such facilities. A = Amenities
Putting this all together, we have created our STA Checklist to help to ensure that we end up with a sta(r) residential property investment!
I really should have posted this last Friday, or Star Wars day (May the fourth) but as I was away I hope that you will forgive the slower than speed of light transmission of this particular feature 😉
Source & credits: The Telegraph
[…] further reading on investment criteria based on my ‘STAR Matrix’: commuter towns, school catchment areas, train commuting maps & employment […]