I've made reference before in this publication about how there are some 'property experts' who still write off the North as a wasteland for investors. Comments like "Any property with a yield over 10% is unsellable!" or, "With a double-figure yield it'll be in a street of boarded-up properties!" are put forward as fact. Those who know no better continue to search the London and south-east estate agents with a feeling of quiet desperation. In my opinion, they miss out on some excellent investment opportunities.

For years I've been building a portfolio in the North-East and have regularly bought properties with yields of 10% or more. During that time, with two exceptions, I purchased good quality property in reasonable areas without any signs of boarding up. However, I'm embarrassed to confess that the two exceptions were the first properties I bought. The first is a pair of flats in a run-down area, which is now a designated regeneration zone. Although they are set to remain standing, many neighbouring properties will be demolished. As part of the preparations, the local authority have been buying property and boarding them up until they are ready to progress. When the council have done their work, the area will be greatly improved, along with the value of these flats. Until then the area remains a bit of an eyesore.

The second of these properties is a terraced house in a reasonable street. Unfortunately the adjoining house is boarded-up and in private ownership. I can't for the life of me understand why the owner has allowed it to decay. While his house has stood empty, I have had nearly 100% occupancy, at a rent which has produced a yield well in excess of 10%. Even with this eyesore next door, I sold three years later, at getting on for three times the price I paid.

At the time I thought these were good buys, although, looking back, they were really made in ignorance. My judgement was also clouded by a certain amount of prejudice. You see, until then, I'd also written off much of the North as a wasteland of boarded-up terraced houses, so I wasn't altogether surprised to be buying next door to one. I didn't realise that decent properties, in areas producing decent returns, could be bought a stone's throw away without a boarded-up window in sight.

However, my story does highlight the concern I now have about the many investors who are piling up their money in the North. A little bit of knowledge is a truly dangerous thing. A consequence of not taking the North seriously as an investment location meant that I knew very little about it, particularly about how the market worked and which were the best areas to buy in. So my first two purchases were not the best investment I could have made.