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  • Property-a-holics

    Manchester BTL for a London Newbie

    Hi Guys,

    Looking for some advice on purchasing my first BTL property! Suffering from a serious case of analysis paralysis...

    I live in London so buying locally isn’t really an option for me. Therefore, I am looking around Manchester, as my girlfriend’s family is there. 

    My budget is 130K (@75% LTV). I am ideally looking for a house (mostly to avoid extortionate service charges) for professionals/families. My goal yield is 7.5%. 

    Q1. Is it realistic to find something fitting these requirements around Greater Manchester, whilst also buying in an area which attracts lower risk tenants? (I don’t want to simply buy based on yield only to find I can’t attract tenants who will pay rent on time and look after the place.)

    Q2. Any suggestions where I might look? I have been looking pretty much everywhere south/west/east of Manchester and the most promising so far seems to be Salford/Worsely/Stalybridge/Wythenshawe but there’s so much research that needs to be done I’m struggling to really pin down an area to focus on.

    Any help will be hugely appreciated, thanks in advance!!

    Marcus

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    Hi Marcus,

    I think you are going along the right lines to buy a terraced house in a good street.

    I would look to mitigate your risk by buying a tenanted property.

    The benefits are explained here >>> Benefits of buying a tenanted property

    If you have a look at the Vesta platform, you will hopefully be able to find a tenanted property where you know the tenant demographic, the tenant's payment history, how they are treating the property, and what the exact rental income is.  This greatly mitigates your risk when buying remotely imho.

    Hope that helps for starters?

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    Thanks Vanessa!! That’s super useful information, I will definitely be taking a look!
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    Thanks for the Vesta tip Vanessa. I've clicked on your link from here and will also check it out.

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    Yes it is realistic.

    I live in Stalybridge, have properties there and elsewhere in Tameside. Currently I am buying a bungelow for £157k that i estimate will bring in 8% net. There are cheaper properties in the area, but I look for properties with an edge that will attract better tenants. £130k should be enough to do that. 3 bed houses are seeing greater capital growth at the moment as there is a shortage in the area, but there aren't many going for less than £130k anymore, so you might have to settle for a 2 bed.


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    Hi Peter,

    Sorry about the late reply. Thanks for the information! I agree, two bed terraced are looking the most likely for me. 

    Which areas of Stalybridge would you recommend/avoid looking at? Rightmove maps out quite a large swath of land for Staly so want to make sure I maximise demand.

    Thanks again!

    Marcus 

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    Sorry missed this. Most of Stalybridge is fine for BTL. There are a few places I would avoid, such as the lower end of Ridge Hill Lane.  Ridge Hill itself is great, I have two houses there, both with tenants who have been there over 5 years,

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    Peter,  do you mean avoid ridge hill lane,  south part,  near the train station ?


    also,   where do you think the planned metro stop might be ? 

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    I mean avoid Ridge Hill Lane where it meets Stamford St, which I think is what you mean. It looks close to the station on the mao, but it is quite steep in between.Also around rush hour it is quite a busy junction and there are often queues.

    As for the metro stop, the route is undecided. The cheapest option would probably be for the tram to join the train line That would likely mean no intermediate stops.

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    £130K is a decent budget to buy in Manchester suburbs. we are Agents/Investors in north and East Manchester. A terraced property with a rent of around £600 will cost you around £85,000. We occasionally get landlords selling and we put these out to people registered on our database. The advantage of buying something like this is income from day one and continued management if required.

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    [Image: New-logo2.png] Manchester based investor. I buy, sell, renovate and rent investment property in East/North Manchester Wink email: mike@brentwoodinvestments.co.uk Call: 0161 681 3724

    Hi Micheal,

    Do you have any tenanted 2 bed terraces at the mo?

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