Mark Lloyd of the Property Mastery Academy has recently identified Manchester/ Salford as one of the top five property investment locations in the UK So what makes Manchester and Salford such good places to consider buy-to-let ?
As Mark notes, there is a very healthy demand for rental property in the two cities because of the disproportionately high population of 25-29 year olds, the group most likely to rent. Young professionals are attracted by MediaCity UK in Salford and the increasing numbers of businesses moving to the area. On top of that, with three universities providing education for around 90,000 students, Manchester and Salford are positively bustling with people seeking rental property!
Although buy-to-let has become somewhat less appealing since the stamp duty rise that came into being in April 2016, it remains a good option for those wishing to grow wealth through bricks and mortar rather than stocks and shares. While in cities like Manchester and Salford there is no shortage of renters, there are some pitfalls to be aware of. For example, how would you manage if the property stood empty for a while? Would you be able to afford maintenance? Can you afford the substantial arrangement fee that comes with the best rate buy-to-let mortgages? Will you use an agent to manage the property, and if so, have you factored that cost into your plans?
There are also many pluses! As a buyer you have no chain and are therefore in a good position to haggle for a good price on the property. Buying a house that needs some renovation offers a quick way to add value to the investment. And, of course, earning a rent that is substantially above the mortgage payment allows for investment – or for saving for another deposit. And with high demand noted above, Manchester and Salford are ideal places to consider buy-to-lets!
As with any major financial decision, it’s essential that you do your homework – and speaking to a mortgage broker, particularly one with expert knowledge of the local area, is important to ensure you get the best possible deal.