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Hi All, I am living in Reading and currently thinking of buying a buy-to-let property within Greater Manchester because it looks like properties .

by TSG 13 February 2010 |

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Hi All,

I am living in Reading and currently thinking of buying a buy-to-let property within Greater Manchester because it looks like properties in Manchester are cheaper. However, I am thinking whether it is a good location for property rental and if will get reasonable return.

Any advise will be appreciated.

Thanks Tanim

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Swarbs posted
Greater Manchester is cheaper than Reading, but it has also been very heaily developed in recent years, particulary purpose built apartments that were sold to BTL speculators. It was one of the hardest hit places during the slump in prices, largely due to so many get-rich-quick BTLers panicking and trying to sell. Rental demand is still strong, but there's been so much development in Manchester, particulary in the city centre (any postcodes starting with M) that the rental market could easily become oversaturated in the short term, so don't expect top drawer rental. However, in the long term prices and rents are likely to be driven up as the city continues to grow and developers run out of easy browfield sites to redevelop.
In general, if you're looking for lots of excess rent and fast capital gains, you're unlikely to get it. But then again, you're unlikely to get that anywhere at the moment. If you have a long term outlook, and are able to put extra cash in in the short term to cover any voids and gaps in the rent, then Manchester is a good place to invest. But by the same argument, if you have a long term strategy pretty much anywhere is a good place to invest. Just make sure to do your sums right and don't just buy and hope the price of the property rises. Also, make sure you are willing to hold the property for at least fifteen years - it may well take the property market five years to fully stabilise, and you want to invest for at least an extra ten years to ensure a decent return.
Posted on 13 February 2010 | Love 2 loves Report
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manzanilla posted
If you have a BTL in Manchester, you will have to have an agent to manage it for you, as you can't be there quickly to sort problems out. Factor in the agent's fees into your calculations!
manzanilla
Posted on 13 February 2010 | Love 1 love Report
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JoeEasedale posted
Manchester is not one market but dozens of different ones. A property 200 yards from another, but in a different area could have totally different attributes as a BTL.
Ist rule of buy to let. Understand the area you are investing in.
Posted on 14 February 2010 | Love 2 loves Report
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TSG posted
Thanks guys.
Posted on 16 February 2010 | Love 0 loves Report

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