The Property Podcast ASK492: Should I buy in an up-and-coming area? PLUS: Do I have enough money to invest?
Sep 2, 2025
Listeners dive into the debate of whether to invest in a less desirable area poised for growth. Rob and Rob weigh the pros and cons of converting a four-bedroom HMO into six, stressing location's critical role. The discussion shifts to a beginner investor with £50k, learning why utilizing a mortgage might unlock greater opportunities instead of opting for a low-cost flat. The hosts tackle the complexities of property investments, offering insights on emerging neighborhoods and the balance between immediate income and long-term growth.
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Plan For An HMO Exit Buyer
- Do plan your likely exit as another HMO buyer rather than an owner-occupier.
- Expect values to reflect HMO use unless someone pays to convert it back to a single dwelling.
HMO Location Constrains Capital Growth
- HMOs usually sit in cheaper areas with strong rental but weak residential demand.
- That makes future owner-occupier capital growth harder unless local fundamentals change.
HMO Is A Yield-First Play
- Do treat HMOs as a yield-first strategy and expect more hands-on management work.
- Turn the property into an HMO only if you accept working for the income and likely managing the refurb and tenants.