7th May 2019
We have just agreed our third deal in Wembley, North West London. This area is popular with many of our readers. They always like to grow their flowers where they can be watered.
Generally, I dissuade investors from buying somewhere simply because they live around the corner from it. The decision should be based on one pure objective. This is to purchase somewhere which will go up in price at the fastest rate in the shortest time period, typically.
However, this particular property is only a three minute walk from Wembley Stadium station, which is only 11 minutes to Marylebone.
I admit to binge watching Million Dollar Listing New York. I have picked up some interesting tips from this TV programme. They have more revolutionary ideas to marketing properties than we do here in the UK. The market there is far more sophisticated than in the UK. They also have barriers to entry, meaning not everyone with a mobile phone can be a property dealer. However, they do have a tendency to get excited over pretty paltry plain vanilla returns.
One of their innovative ideas is you do not sell a property in the location it is in. Instead you look at the connectivity and build a case to market this property in a more central location (therefore pricier location).
Most people living and working in Marylebone do not appreciate you can get from this flat in Wembley to Marylebone station, in under 15 minutes. It would be a revelation to them, that you can buy a three bedroom flat for £350K, with the convenience of dipping into central London whenever you wish.
From a rentals point of view it would certainly be worth marketing this to the Marylebone crowd, as the price to rent a 3 bedroom in Marylebone is about £4,000; and the price of a 3 bedroom flat in Wembley would be around £1,500. A saving of £2,500 per month amounts to a saving £30,000 per annum.
For the sake of only 15 minutes commute time this becomes a very compelling case to rent outside of town. One perhaps a tenant would not ordinarily consider.
This location is also still ripening, there has been much growth, which has been done in a holistic manner. The area is still growing and there are plans which are yet to fructify.
The interesting thing about this deal is the buyer has relied up on another’s opinion on the deal. Neither one has actually seen the property. This has all been done on trust.
Although, in actual fact, when you view a property all you will see is a few square rooms. More important is the number you’re buying at and which direction that number will go in, in the future.
I actually met someone on Saturday saying he regretted going to view a property. As by the time he viewed it, it was sold. And there was nothing to see; this was a commercial property which he dines in from time to time.
He assured me the next deal he does, could well be done blind.