Tips for Finding the Perfect Manchester Investment Property
Investing in property in Manchester can be a lucrative venture, but it requires careful planning and knowledge of the market. This guide provides essential information, insider insights on Manchester property investment and expert advice to help you navigate the property market successfully.
Why Invest in Properties in Manchester?
Population Growth:
Manchester, often called the ‘London of the North,’ is rapidly becoming the UK’s secondary financial hub. The city’s population is growing daily, attracting many young professionals looking for a more affordable alternative to London. The Office for National Statistics reported a 2.6% population growth from 2021 to 2022, a trend that continues in 2023.
Property Boom:
Manchester’s property market is set for continued growth in 2023. Despite a nationwide market adjustment, Manchester remains an attractive investment option due to its robust market conditions. Average house prices in Manchester are over 39% lower than in London, making it an appealing choice for investors. Property prices in Manchester increased by 9.3% in the past year, surpassing the national average.
Exciting City Life:
Manchester offers more than just its famous rainy weather. It consistently ranks high in ‘best places to live in the UK’ lists due to its vibrant nightlife, diverse cultural scene, and strong employment opportunities. The city is home to prestigious universities, making it a magnet for students who contribute to the lively atmosphere.
Thriving Economy:
Manchester’s economy is bolstered by key industries such as manufacturing, finance, healthcare, and digital sectors, generating over £4 billion annually. MediaCityUK, home to BBC and ITV studios, attracts numerous businesses, enhancing the rental market.
Understanding the Manchester Property Market:
Before investing, thorough research and market analysis are crucial. Consulting with local experts and staying updated on market trends can provide valuable insights.
Market Analysis:
Manchester has the highest job creation levels in the UK, a 50% graduate retention rate, and significant government investment. The city has seen substantial increases in property values, with rental yields for new developments in the city centre growing by 22% in 2022. JLL predicts a 6% rental rate hike in 2023, with a 21.6% increase expected from 2023-2027.
Where to Find Investment Properties in Manchester:
Finding the right investment property requires a strategic approach. Here are some steps to guide you:
Define Your Investment Goals:
Determine if you’re looking for properties that generate rental income or appreciate in value. Consider if you’re prepared for renovation costs and whether you’ll use a mortgage or have cash ready for investment.
Cultivate Useful Connections:
Networking with local real estate professionals can provide insider information on hidden investment opportunities and properties not listed on standard platforms.
Know Where to Look:
Utilise online platforms, property websites, and real estate portals to search for properties. These tools allow you to filter searches by price, type, and location, and offer detailed property information.
Do Your Research:
Research the local property market and upcoming developments. Explore up-and-coming areas like Ancoats, New Islington, Deansgate, Salford Quays, and the Northern Quarter for potential investment opportunities.
- Ancoats
Ancoats is a trendy neighbourhood with a 195% increase in property prices over the past two decades. It offers a mix of excellent bars, restaurants, and high rental yields.
- New Islington
New Islington blends contemporary design with industrial heritage, offering green spaces and proximity to the city centre. It’s a popular area with significant investment potential.
- Deansgate
Deansgate is a sought-after area with excellent transportation links, vibrant nightlife, and iconic landmarks. It offers promising rental yields averaging 6%.
- Salford Quays
Salford Quays has transformed from an industrial area to a thriving district with landmarks like MediaCityUK. It offers impressive rental yields of 6.2%.
- Northern Quarter
The Northern Quarter is known for its vibrant music and fashion scenes. It attracts young professionals and students, offering a diverse range of properties and strong employment prospects.
Pros and Cons of Investing in a Manchester Property:
Advantages:
- Booming Student Population: The large number of students in Manchester brings with it the high potential for rental property income.
- Rental Yields: The average yield in Manchester can reach as high as 8% on rentals. Really decent.
- Excellent Transportation Links: Unrivalled rail and motorway networks make your travel easy, with the upcoming expansion of HS2 further enhancing connectivity.
- Property Price Appreciation: Increasing property value offers higher returns on investments.
Risks:
- Market Volatility: Prices for the properties in the market can fluctuate and impact investment returns.
- Regulatory Changes: Changes in property law or tax regulations may affect returns on investment.
- Maintenance Costs: Properties may require maintenance from time to time, and this is costly.
Investing Money through Property Investment in Manchester
With property prices on the rise in Manchester, investments need to be made at the right time. Great research is always in place, but moving quickly can find you snapping up some really brilliant deals.
Do Your Research: It is really important to be well up on the property market here in Manchester. Visit different neighbourhoods, consult with experts, and stay informed about market trends and developments.
Everything else is worthless without a budget—unless you have a Set up a budget and stick to it. Allocate funds toward unexpected costs and remember that investments are a long-term deal.
Think Positively, Learn from Failure: Property investment is not without fail. Take any setbacks as learning opportunities and keep a positive frame of mind. Surround yourself with positive and successful people.
Investment in properties in Manchester is an exciting venture since there are unquestionably many opportunities. However, this might require one to plan carefully and do research, and you will successfully navigate investment in Manchester and make great investment decisions.
