Located within the heart of the UK, property investment Nottingham can prove to be a lucrative venture if remember to you equip yourself with the property knowledge and resources to take advantage of its property rentals.
As with all other property investments it is important to learn as much as you can about your property location, average rental returns and tenancies demands to ensure you only invest in the best properties. So if you are considering property investment Nottingham, make sure you try to do the following:
• Research, research, research…
The reality is not every property can be transformed into a property let. Some have got a stronger tenancy demand and rental value than others, so it is essential that you thoroughly research your properties first before you invest.
There are a number of ways you can do this:
- Visit property portals: The types of properties advertised for rent on their websites should not only give you an indication of which property investments in Nottingham are most popular. But you should also be able to figure out the tenancy demand for the area depending on how long these properties are advertised for.
- Browse your local newspaper: Advertising in newspapers may no longer be the rage, but they are still good for market research. Scout around your local papers and see which property types are up for rent and how much they are charging
- Visit the local property letting agent: Letting agents can prove particularly useful in determining which properties are going fast, the amount of tenancy demand there is in the area and rental returns. Just make sure to go around several to ensure you are getting a thorough market census.
• Stack your properties
Now you have acquired an insight into the area, it is important that the properties you are viewing can produce the positive cash flows you are looking for. A positive cash flow is the profits left over after the properties mortgage payments have been deducted from the rent. If your property can produce at least £300 in positive cash flows, it is worth stacking and negotiating a discount.
For instance, average property rentals in Nottingham can generate:
1 bed - £386
2 bed - £491
3 bed - £586
4 bed - £789
However look more closely at Nottingham’s districts and you can witness:
- Mansfield: £532
- Newark: £1,741 (4 bed property)
- Rushcliffe: £718 (3 bed property)
- West Bridgford: £926 (3 bed property)
We recommend accumulating at least 10 cash flowing properties that you can bid on, to give you a higher chance of winning the property.
• Have you got the finance to invest?
Whilst the size of the mortgage loan you’ll receive from your bank will be based on the properties ability to produce 125% of its mortgage payments in rent, it is still important that you budget.
For instance did any repairs or structural problems come to light when the property was surveyed? Does the kitchen or bathroom need replacing? Repairs and costs can cut into your profits if you are not careful, so it is important that you have got cash on hand to cope with every eventuality. More importantly, you need to consider if these maintenance costs will still make the property a viable investment…
One sure way to boost your finances, is to negotiate sizeable discounts off your property which you can transfer straight back into its repairs. The assistance of a broker or negotiator at this stage of your property investment could be helpful. They can help you to negotiate these discounts and point you towards the best buy to let deals on the market.
• Advertise
You have got a number of options available to you for your property investments Nottingham. On the one hand you can follow the traditional route of advertising in newspapers, letting agents (Belvoir Letting, Express Letting, Eastside Properties, and City Lettings etc) or on property portals. However, if you are confident of your target tenancy audience i.e. students, you can be more specialised in your approach.
For instance Nottingham has got a population of over 40,000 students, 69.88% of which will need to look for private accommodation as their universities are unable to supply this.
Now with this knowledge you can approach student letting websites, student unions etc, to target your property investments specifically.
As we mentioned at the beginning of this article it is important, no matter where you are investing, to acquire a thorough knowledge of the location, tenancy demands, rental returns and advertising opportunities to ensure your properties remain full. Learn to research properly and you can feel confident about the long term success of your property investments Nottingham.

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