UK Property Investment - Manchester Hype

[ArrynField]

Rightmove or Zoopla are probably the best.

During Covid it’s better to use an agent.

Try one of the ARLA agents

https://www.arla.co.uk/find-agent/?d...ester%20&name=

[walkup]

just looked at the agents website, they have 163 apartments available to let. This time last year only have a few. Going to try and let it myself.
anyone know any good websites to advertise properties to let.

Are you in the UK or have a contact there to organise the process of letting in lieu of an agent?

[Timaw]

Thoughts/concerns/issues with buying one of the many new apartment units in Manchester, UK? Anyone bought there within the past 3 years? Rented?

The APAC agents market them with very high rental yields (7-9%), and of course the purchase price for a high-end 1-2 bed apartment is a fraction of the same in the London and the South...

Close to jumping on the bandwagon, but it might be a case of oversupply given the amount of apartments I see available on the likes of Zoopla and RightMove, etc.

Thanks,
D

Have you watch billion pound property boom on the BBC iPlayer.
https://www.bbc.co.uk/programmes/m000lwn5

[Pauljoecoe]

Changes in regulations/tax around letting is making it less profitable in the UK. I have a friend who has 6/7 rentals and he is keen to get rid. Any profit he is making is being spent on fixing issues caused by poor tenants. At the moment you cannot evict anyone for rent arrears. Not a good time to be a landlord.

[seirin]

Bought in 2002 at GBP310,000
Sold in 2019 at GBP390,000

A lot less impressive in USD terms.

A good tactic to goose up the property market is weaken the currency. So if the UK wants to continue goosing property, I would expect the GBP to weaken rather than strength.

[hullexile]

A lot less impressive in USD terms.

A good tactic to goose up the property market is weaken the currency. So if the UK wants to continue goosing property, I would expect the GBP to weaken rather than strength.

Do you think the exchange rate is manipulated to "goose" the property market?

[seirin]

Do you think the exchange rate is manipulated to "goose" the property market?

They indirectly do so via interest rates. The most glaring example is the US after the housing bubble popped and the Fed "manipulated" interest rates to reflate the housing market after the bust and has generally kept rates lower than pre-housing bust throughout the entire "recovery" cycle.

[Beanieskis]

7-9% rental yields sounds unrealistic. I own an apartment in Manchester and I would guess that current gross yields are around 5-6%, although it would depend on the quality and location of the apartment (better the location, lower the yield). Net yields after service charges will be lower.

Is the vendor "guaranteeing" the 7-9% yield? If so then they may have built it in to an inflated purchase price.

[JAherbert]

Any profit he is making is being spent on fixing issues caused by poor tenants.

remote is difficult, especially when a leading agent returned the whole deposit to the tenant before checking, the tenant had wrecked the place.

[TheBrit]

7-9% rental yields sounds unrealistic. I own an apartment in Manchester and I would guess that current gross yields are around 5-6%, although it would depend on the quality and location of the apartment (better the location, lower the yield). Net yields after service charges will be lower.

Is the vendor "guaranteeing" the 7-9% yield? If so then they may have built it in to an inflated purchase price.

You can get those sort of gross yields (7-9%0 but typically you'll spend more on tenant issues the further down the subprime tenant curve you go chasing yield. Net it all out and 4-6% is quite realistic in most parts of the UK if you are after low-maintenance tenants, i.e. professionals rather than students or DSS.