It is a question you are likely to ask yourself when searching for an investment property. You know the area on your doorstep, which streets to avoid, where the shops, schools and the doctors are. This may make investing close to home seem like a safer option, but with property hotspots likely to be further afield, it could also mean lower rental income and a slower rise in market value.
If you are planning on managing the property yourself, investing close to home is undoubtedly an advantage, saving costs on travel to and from the property and resulting in a faster turnaround for maintenance issues. You may also have existing relationships with reliable tradespeople and Estate agencies, adding to the security of owning a property nearby – however living in the same town as a nightmare tenant can be a bind!
Whatever the benefits of investing in an area you know, it would be impossible to be near every up and coming property investment hotspot - This leads any investor with an eye on the margins into unknown territory eventually. Providing your due diligence is thorough and a trusting relationship is built with a Property Management firm, investing in a new location can provide a hands-off investment with higher margins.
In conclusion, it depends on what you want to get out of your investment – Investing in an “unknown” area could mean a better yield and return on investment, although a more hands on investor may prefer to be closer to their property.