Rents Are The Same Everywhere (Room Rates)
Hey, I’m Samuel Leeds! I had visited a very expensive area, BeaconsField. Here’s something very interesting about this area: rooms to rent!
If you come here to rent a room, guess how much are you going to pay? About 400-500 pounds a month per room! However, if you’re going to buy a house or apartment here, it’s going to cost you millions. If you don’t believe me, you can go to sparerooms.co.uk and see for yourself. You can check for other areas as well, and would find rooms for pretty much the same price.
How Much For A Room?
If you go over to my YouTube video, I am doing exactly that, showing different rooms in areas at pretty much the same price.
So you’re going to pay 400-500 pounds a month for a room. This is crazy because rooms rent out the same wherever you are in the country. But why is that?
Because people who want rooms, just want rooms to rent. Maybe they’re moving because of their job; they’re leaving their hometown.
So what is the trick for an investor? I hope you catch this: there is no correlation between house prices and rent. So you want to buy low and rent high. This is also the title of my book ‘Buy Low Rent High’. So buy low, rent high with a property manager nearby. It is about investing little and getting a lot out of it. Because this really creeps me out when people rent out houses in London for the price they could rent out for in Birmingham. But you need to remember the rule of thumb: room prices are the same. You could be in Birmingham, Beaconsfield, London, Liverpool, Newcastle, etc. and room prices will be the same. House prices, on the other hand, will be different.
I hope you understood the concept of renting out rooms in different areas because of this blog. You may head over to my YouTube channel where I show the similarity in room prices in different areas on spareroom.co.uk.
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