ASK243: Should I go for quantity over quality? PLUS: Is renting to councils a good idea?

It’s Tuesday and Rob & Rob are back again to answer more of your questions.

First up we have a question from Lauren. She’s a 23 year old graduate who is looking to get into property investment for the first time. At the moment Lauren is fully educating herself before she gets stuck in - good shout, Lauren!

Her aim is to achieve capital growth as the market recovers from the coronavirus, with the aim of her and her brother affording deposits for their first personal houses in seven years time.

Lauren currently has £126,000 and location-wise she’s looking at Birmingham for the capital growth prospects. So now she has two questions that she needs a bit of guidance on. 

Should she purchase two more expensive properties with around a £50,000 deposit each, or should she choose quantity over quality and go for cheaper properties? She’d also like to know if she should buy these properties in one place or spread them out across the country?

So, is it better to have more properties in your portfolio or have less of them but of a higher, more expensive quality? 

Next we have Tom from Stanford who has a rather interesting question. 

He says that just south of him is Peterborough where there are some cheap properties, although they are situated in less than prime areas. He’s noticed that the local council are advertising to take on private properties for a fixed 3-5 year income. 

So Tom is now wondering if this is a viable option to gain a guaranteed income for at least three years and a long-term tenant?

Do Rob & Rob think this would be a good strategy to sub-let to the council? Tune in to find out. 

 

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