The countdown continues on the nine rules of lettings .. the nine rules that determine whether a place (town, suburb, city) is either a good place to open a lettings agency OR if you have a lettings agency up and running .. if it would be easy (or difficult) to grow one's business.
Rule 5 (rules 6, 7, 8 and 9 can be found in February's and January's posts .. go have look for them) is all about the demographics of a town .. in particular the demographics of whether there are distinct posh, middle class and lower class areas.
The greater the distinction, the better it is to start/grow an agency .. why? .. you see if there are poor areas, people (tenants) will want to better themselves by moving to (by renting) to a more middle class area, whilst, if there is a posh area in the same town, that is where the landlords will live .. and as landlords tend to buy middle class properties to for buy to let properties .. and if those middle class properties are on their door step in the town they live in .. that is what they will tend to buy for buy to let properties. (If landlords live local .. its easier to get their business)
How do you find this out? Use the ace website Mouseprice ,, they have Property Heat Maps.
Click on the link below, but to follow these instructions...
http://www.mouseprice.com/property-for-sale/map/e14
.. and you will be presented with something like this. Looking at the map, see how the town isn't just one colour (the colour shows the average house price. In the North and Midlands, we are looking for distinct areas of Blue (cheap), Greeny/Yellow (middle) and finally Orangey/Red (posh) .. whilst in the South Greeny/Yellow (cheap) Orange / Red (middle) and Black (posh)
You see if its all cheap (and thus one colour), where do the landlords live? If you have all posh .. you all landlords but no tenanted property.
If you want to send me your screen shots to christopher@christopherwatkin.co.uk .. I have hundreds of hours of looking at these maps, so can interript them in seconds
Rule 5 (rules 6, 7, 8 and 9 can be found in February's and January's posts .. go have look for them) is all about the demographics of a town .. in particular the demographics of whether there are distinct posh, middle class and lower class areas.
The greater the distinction, the better it is to start/grow an agency .. why? .. you see if there are poor areas, people (tenants) will want to better themselves by moving to (by renting) to a more middle class area, whilst, if there is a posh area in the same town, that is where the landlords will live .. and as landlords tend to buy middle class properties to for buy to let properties .. and if those middle class properties are on their door step in the town they live in .. that is what they will tend to buy for buy to let properties. (If landlords live local .. its easier to get their business)
How do you find this out? Use the ace website Mouseprice ,, they have Property Heat Maps.
Click on the link below, but to follow these instructions...
- Once you have clicked on the link, type in the top right hand box your core postcode (that's the bit before the space in the postcode) then click SEARCH
- Then, once Mouseprice has given you the next screen, scroll down and tick the HIDE ALL PINS
- Next, increase the transparency bar from around 40% to 80% (ish)
http://www.mouseprice.com/property-for-sale/map/e14
.. and you will be presented with something like this. Looking at the map, see how the town isn't just one colour (the colour shows the average house price. In the North and Midlands, we are looking for distinct areas of Blue (cheap), Greeny/Yellow (middle) and finally Orangey/Red (posh) .. whilst in the South Greeny/Yellow (cheap) Orange / Red (middle) and Black (posh)
You see if its all cheap (and thus one colour), where do the landlords live? If you have all posh .. you all landlords but no tenanted property.
If you want to send me your screen shots to christopher@christopherwatkin.co.uk .. I have hundreds of hours of looking at these maps, so can interript them in seconds