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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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    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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    £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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    Hi Marco,

    Welcome to Property Tribes, and congratulations on starting your property Journey!!

    There are many properties in and around Manchester that can get you the yield you want with the budget you have. I’ve posted a couple of examples below so you can get an idea:

    In terms of which are to go for, have you asked your girlfriends family where they think would be suitable, as they would know the different areas?

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    Transparency notice: OneandOnlyPro is a commercial partner of Property Tribes.

    One Pro - Shouldn`t your ad read

    Rental yield range 7.2% - 9.06%  for the Lily Lane one

    And 6.36% - 7.95% for the Little Bolton One

    Your yield fig displayed in bold  just takes the top end figure

    Should show the rental yield range so not to give a wrong impression

    Also that one in Lily Lane you advertise @ 795 max seems very top heavy for a 2 bed mid  terraced which is somewhat dated inside

    Is £795 pcm actually achievable ?

    This similar 2 bed one around the corner in Waverley Rd which has been refurbed is on at only £600 

    https://www.rightmove.co.uk/property-to-...83069.html

    Also this lovely 3 bed semi in Kenyon Lane which joins Lily Lane is only £750 pcm

    https://www.rightmove.co.uk/property-to-...56090.html

    So £795 for a 2 bed mid seems well over the top and a tad misleading One pro ?

    ................................................................................​.....................................................

    So be  very careful Marco when doing your DD for  Manchester from a London base

    Some websites show inflated unrealistic rental yield figures in my view

    Check against rightmove like I did if you get offered a property

    Also ask investors who actually invest in the area and have visited the area you choose

    They will have much better knowledge than a flawed postcode  algorithm

    It would be a shame to invest in a 2 bed  and then find you cannot achieve anywhere near  £795 pcm

    The mortgage valuer would knock the rental value achievable down anyway to save you hopefully. But even then you would have  wasted  time and money and effort by then all to no avail if you just take an ad on face value

    Do copious DD and check adverts carefully

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    Jonathan Clarke. http://www.buytoletmk.com