Manchester - Investing

D

dingdong

Registered User
Messages
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Hi All

going to manchester this week, to look at property for buy to let. It is new territory so dont know much. Can anyone advise which part is best to invest in.

Any new apartments that are worth a punt!!, or what is your overall thoughts ?. Any experience would be great
 
I'd give Bertie a call - he seems to know the area well - he's been there often enough!
 
Hi
I think you have missed the boat as far as Manchester goes.Rents have decreased over the past two years.Try further North.
 
I agree rents are poor currently. I do however think Manchester is a good long term investment (i.e over 10 years). It is after all the 'jewel of the north' as they say and has the best economy outside London in the UK.

Good areas to Invest (Suburbs)-

-Didsbury (top end prices)
-Chorlton (top prices)
-Withington (up and coming- where I would invest if I was to)
-Victoria Park (some parts)
-Sale

Poor Areas to Invest (Suburbs)-
-Hulme (too much social housing mixed in. High crime)
-Whalley Range (I don't like. Bit dodgy)
-Levenshulme (Too far from anything else
-Salford

In City Centre (Massive oversupply throughout of flats)-
-Northern Quater (Bit dodgy but on the up)
-Castelfield (Solid investment but oversupply)
-East Manchester (s*** hole but a good 20year investment as major money going in and tram line)


Basically currently there is too much supply, particularly in the city centre for apartments. Low offers order of the day IMO.

I would look at the decent southern suburbs as this is where most people want to live. Otherwise look at those places next to the proposed metro line. I am more than confident that the metro extension will happen. Just a question of when.

Either way Manchester is a 15year investment. Don't expect to make any capital gains for at least 5years.
 
Thanks for detailed reply

I have short term goals, so conerned about lack of cap appreciation. We are meeting a few agents who are offering 20,000 pound discounts on new builds apartments. So hard to know if these are good deals , or paddy prices, next years price.

When you talk about further north, which areas do think is best for appreciation.
 
I think by further north he/she ment North East (i.e Newcastle etc) where prices I expect are less and so more chance of capital appreciation. North West (i.e Cumbria - above manchester) has been flat for the last 18months though.

I can't see capital growth in Manchester over the next few years. Probably been 5% for the past 2years. When you factor in 3% inflation its not much of a return.

Yields in Manchester are probably 4% on a flat so a very poor rental return.

By all means show me what your offered and I'll give my opinion. The website www.rightmove.co.uk will give you rental and prices on a load of other properties in that location.
 
Discounts on new builds have been the order of the day for months in the UK outside london - for example where volume purchasers have got 20% off the price for buying 10. They then resell in an orderly fashion at 10% off.

Beware good deals - everyone knows the paddys have cash to burn.
 

I wouldnt disagree with that - to be honest I wouldnt buy in the city centre I would go for the southern suburbs.

Firswood and Chorlton would be my tip as they are getting new tram stops and are already attractive areas for young professional renters.

Also have a look at these threads

http://www.askaboutmoney.com/showthread.php?t=28169&highlight=manchester

http://www.askaboutmoney.com/showthread.php?t=35851
 
Big discounts on apartments in the UK has become a scandal. "Lie to Let" is simply the overvaluation of a property which you think you are getting 20% discount on. The bones of it is they property is overpriced at outset. There maybe some genuine deals out there but it remains to be seen in my opinion. Oversupply is setting in, in city centres. Replacing aging buildings with plush apartments has flooded the market over the past 3 to 4 years. There will always be gems available (old properties) as small univeristy buy to lets or renovation projects where you can pick up bargains below market value hell, there has to be to keep making all these property programmes!! But discounts on city centre apartments in the UK in my opinion is a bad move unless you have massive incentives thrown in and say long term 18 months to 2 year tenants in place to move in straight away once its built, even with this there wont be room for big capital growth.
 

"lie to let" is hardly news - if you do your homework you should know the values of the apartments that you are potentially purchasing and therefore already know what the true value is and what the true
true of the apartment is, and if you don't you should use an independent agent (ie. independent of the sale not just a resale broker!) and they should be able to let you know where the true value is.

As for the saturation of city centre markets - yes its true to some extent that smaller regional cities that piggybacked off the success of Manchester could be effected (such as Sheffield, Newcastle, Preston, Liverpool and to a lesser extent Leeds) but Manchester market is a lot more mature than the afore mentioned cities and there is reason Manchester was the first to boom and that is because it is a financial and educational centre for the north of England and has the ability ride booms and busts unlike smaller cities which could be more susceptible to economic variations.

I would still advise that a purchase of a second-hand city centre apartment or a house/apartment in a affluent southern suburb is a good bet for rental income and capital growth.
 


"Lie to let" will be a scandal. And agree somewhat to your comments.
 
icecool said:
"Lie to let" will be a scandal. And agree somewhat to your comments.
Click to expand...

Impossible to prove - once its six months down the line all the valuer has to say is that the market has moved
 
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