Manchester is the place to invest in 2015
A recent housing report from Savills discloses that Manchester has become one of the nation’s primary property hotspots for both Residential and Purpose-Built Student Accommodation. Since 2015, the metropolis’s investment prospective for tailored student accommodation has now exceeded the likes of renowned university cities Oxford and Cambridge, as well as others.
Why choose Manchester?
1. London is not a viable option (unless your willing to pay the inflated prices)
London may get you great capital gains but if your strategy is to buy and hold property, for your pension for example, then a capital gain, with all its tax liabilities may not be the right the strategy for you. You will need a large sum money for stamp duty, not to mention a enormous deposit! Purchasing property outside of the capital can result in much greater yield opportunities. A recent article written by The Telegraph ranked Manchester 2nd in the scores with 7.98%
2. Manchester has affordable properties with great potential
One of the major factors that makes Manchester the best area for buy to let is the price of the properties in some of the areas of Greater Manchester. This combined with the rental prices across the area equals an excellent yield.
Yield is calculated by dividing the annual rental income by the total property cost, in a simple sum, let’s take a property worth £100,000 and the rent of £500 per month, 500 x 12 = £6000 divided by 100,000 = 0.06 x 100 = 6%.
3. High residential demand in Manchester
In 2014 the population total in Greater Manchester was 2,682,500. Manchester is the 3rd largest city in the country and it’s city centre has the same stores as London. The football teams are adored by all, transport is simple and efficient to all areas of the city as well as the rest of the country. Manchester also has the largest university population in the country. The tenant mix in Manchester is made up of working couples, working families with multiple children, young professional couples, young profession foreign couples and students.
In summary Manchester has plenty of tenants!