Thinking about investing in the Manchester or the North West? In today’s video, Rob compares locations and nails down seven of the best places to invest in the UK.
In today’s video, we’re going to be looking at the seven locations I believe are best for investing in property in the North West.
Now, this list of locations is made up of areas that I prefer based on 11-plus years now of experience of investing in property.
Not only finding properties for clients but also having properties ourselves over a long period of time.
So it’s about what the tenants have been like, what the growth has been like, what the availability of decent deals, housing stock, different strategies that you can operate in these different locations.
I’ve invested across the whole of the North West.
We’ve got properties from North Wales all to North Manchester and a number of areas between.
We’ve got quite a good grounding on what kind of properties – what locations are kind of working.
What I want to help you with in today’s video is give you an idea of the seven key areas that I personally like to focus on now.
The first area – in no order of preference – is Salford.
Salford is very close to Manchester. You can walk into Manchester City Centre from Salford in five minutes.
Salford, as an area has lots of growth potential so there are real, long-term benefits to investing in the area and a lot of potentials there as well.
And you can get a very solid rental yield in Salford as well.
- For a straightforward buy to let, your yield would usually be 7% or 8%.
- For HMOs, you’re going to comfortably achieve yields of 12%+.
There is just lots of potential in Salford as an area.
Next up is Tameside.
Tameside is on the opposite side of Manchester to Salford. Salford is to the west of Manchester and Tameside is to the east.
The reason why I like Tameside is again, the rental yields are really good.
But, the tenant profile is really good there as well.
You’ve got great affordable housing in Tameside and there are a lot of properties that make fantastic rentals.
This gives you a very good professional tenant profile.
So, Tameside is another good location to consider.
3. Manchester City Centre and South Manchester
The third locations you should look at are Manchester Central and Manchester South.
I’ve combined them here as they offer a lot of the same benefits.
Historically, growth has always been good but this year, capital growth and rental appreciation has been excellent.
And the tenant profile is very solid, very strong as well.
But, rental yields in Manchester City Centre and in South Manchester can be a little lower than in other areas.
So, what I advise, if you thinking about investing in Manchester is that you look at investment strategies that will increase your potential for rental yield.
For instance serviced accommodation in Manchester is fantastic.
The resale market in Manchester is great as well. So, flip projects can be very profitable.
So for good capital growth and a solid tenant profile you don’t have to look far from Manchester.
But, beyond that Manchester offers a lot of great opportunities for alternative investment strategies like investing in serviced apartments.
And, that’s why I love Manchester.
Should I Invest In South Manchester Or The City Centre?
For more information you can see our response a client who got in touch with us last year, asking whether it would be better to invest in South Manchester or in the city centre.
In our response we cover:
- Investment Property and Goals
- Buying an Investment Property in Manchester’s City Centre
- Buying an Investment Property in South Manchester
- The Seven Golden Rules of Property Investing
Number four on the list is Wigan.
It’s an area you may not have heard of if you’re looking at investing in the north-west as it can fly under the radar.
Wigan offers great, affordable housing – and when I say, ‘affordable‘, I mean affordable in terms of the local housing market and not just affordable for investors.
This distinction is important.
In Wigan, there is a good mix of homeowner demand and buy-to-let rentals. There is a good balance.
In terms of house prices, there is also a lot of potential for growth there as well.
And, the rental yields are really good.
You’ll get good yields for straightforward buy-to-lets and there are options in Wigan for investing in higher yield properties like HMOs.
There are a lot of options in this area.
As a location, Wigan is a great all-rounder.
Number five on the list is Chester.
Now, this is a fantastic location for serviced accommodation.
And it’s a fantastic location for flip projects.
The buy and hold rental yields are a little bit lower than what we’d normally hope for, for our portfolio.
In Chester there are fantastic tenant profiles – great long-term tenants.
But the holding yields can be low.
So, again, maybe you should be looking at serviced accommodation to increase your yield.
Or, you could focus on flip projects.
The resale to homeowner market in Chester is very strong. There is a lot of demand.
To sum up, with Chester – Capital growth is good and you CAN get some great rental yields but I’d also suggest looking at the serviced model and at flips.
The resale to homeowner market is strong, so the flipping strategy can work especially well.
Number six on the list is Warrington.
Warrington is similar to Wigan, in terms of why you might consider the area as good for investing in property.
The yields in Warrington are still good. And, personally, I think the prospects for capital growth in Warrington are better than they are in Wigan.
There is a downside.
Property prices in Warrington are on the up but there is better growth in other areas of the north-west.
And, with Warrington, the options for rental return are shrinking.
There is, I think, a small window of opportunity for investing in Warrington that will work if you focus on yield and resale.
As an area, it’s just on that cusp.
Warrington is a busier market than Wigan and it’s changing. If you want to invest in Warrington, I’d say now is the time. But if you wait for another year, you might need to tread carefully.
Last on the list is Wythenshawe.
This is an area of South Manchester, and not one I’d traditionally suggest.
From a property growth perspective, it’s massive.
Wythenshawe is very close to Manchester Airport and there is a lot of infrastructure development going on there.
There is a lot of development. There are lots of companies investing there.
The Metrolink goes through Wythenshawe.
It has easy access to Manchester City Centre.
House prices have gone up significantly in the last 12 months.
As an area, I think it’s still got a lot of property growth left in it.
Wythenshawe is an area that can go under the radar a little bit.
It’s true, the yields can be slightly higher if you go further afield.
But, you get still yields of about 7% plus in Wythenshawe and your growth prospects – your resell market – is very strong there as well.
I think as a long-term play, Wythenshawe looks really good.
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