Investment in Manchester (is it too late now)

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    Investment in Manchester (is it too late now)

    I have some funds available for investment and had been exploring cities in north(mainly manchester). Seems there are loads of new high rise premium development going on in city centre area. Although the prices are low compared to london(above 250k for 1-bed flat) it seems high. Builders and property agents seem to be very bullish on future equity gain or rent prospects. So far that some are suggesting I could gain 20% before completions (i.e buying off-plan and re-sell) in 2020/21.

    -has anyone in here invested in manchester?
    -can you see enough rental demand with hundreds of flats in city centre in next 2-3 years. Especially at monthly rents of above £1300.
    -Would you recommend any areas, developers or no go areas.
    - OR is it too late to get into that market now..

    Thank you for stopping by, appreciate your replies.

    #2
    The website below has suggested Colchester for rising rental income :

    https://www.simplybusiness.co.uk/kno...-let-areas-uk/

    Comment


      #3
      I suggest you should wait until after Brexit before deciding where to buy. A 20% potential gain from "buying off-plan" may not occur if too many flats are not able to find tenants willing to pay £1300 /month.

      Comment


        #4
        Who on earth is going to pay £1300 pcm for a flat in Manchester? I'd have thought about half that.

        Comment


          #5
          The players for Manchester United Team can afford the rent but may be more comfortable living in a house.

          Comment


            #6
            I would stay away from high rise in Manchester. There has been an over supply and many people struggling to sell hence the offer of discounts. The other issue is many blocks turn in to BTL blocks and they are not great to live in. Try outer Manchester - 2 bed terrace in Oldham, Bolton, Rochdale for around 50k-60k would be a much better investment

            Comment


              #7
              Irrespective of location, there remains a big question over the level of Service Charges and Ground Rents. Often Developers keep Service Charges to a low level presumably designed to enhance the marketability of the individual units, unfortunately when essential works are required to be undertaken there is insufficient monies in the Capital Reserves and therefore shortfalls are then levied upon the Leaseholders and unless this is addressed as the development gets older the liabilities make it an inequitable charge and by default reduce the profits of any rental.
              I cite a development , although in South East London for which I am involved with. Development 12 years old, Service Charges were kept artificially low but now significant works have to be undertaken or planned for the large complex andthis year the Service Charges have jumped from £3000 per annum to in excess of £5000 and Ground Rents have increased and will continue each 8 years by a compounded rate of inflation.
              Sometimes it is wise to look at the terms not least a possible requirement by the Freeholders to require Leaseholders to seek consent to let a property for which a Fee will need to be paid on each occasion a new Tenancy is created.

              Comment


                #8
                I invest near Manchester in Tameside. Prices have risen. I bought a 3 bed house in 2016 for £127.5 that is now worth £180. Partly that is due to a shortage of 3 bed houses in the area (vs a surplus of 2 bed). There are places where I wouldn't buy, which tend to be the cheapest places. There is a 2 bed terrace for sale on a popular road for £120k that would fetch £600pm.

                I have a flat in Reading, a former home. Most of the service charge is decided on by the leaseholders, but they have not being putting enough aside for redecoration, which is years overdue according to the lease terms. I am looking to sell and the condition of the common areas is not helping. The good thing is that the agents have got quotes for the working and it looks like about £300 per flat.

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