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Yesterday, a developer showed me some pre-launch property developments in Manchester City centre.All I kept saying was WOW! I was so impressed with the nature of the developments and the potential for making some decent money as an investor. My only concern was that there are a serious amount of property developments under construction / planned in Manchester over the next couple of years, so is the market about to be saturated?Please let me know your thoughts.
Something like this happened in Glasgow Quays if you Google it. Apparently when people bought their flats almost every one was bought as an investment and the market was saturated.
But was the demand there from people wanting to rent in the area?
It was a disaster. Huge saturation of the market. I heard of someone who bought three and had to sell all three just to manage to pay off two of the mortgages so was left with the third mortgage to pay off himself. Personally I never touched off-plan on large developments. There was all sorts going on with surveyor over-valuing resulting in mortgage restrictions.
I am of the opinion that the person buying from development companies will become the person who is going to lose the most in the deal where they should be the investor who is going to make money on the deal.
Thanks for the info.
Hi NIck,We have a long running thread about the BTL scene in Manchester.Buy to let in ManchesterInstitutional investors are moving in to the city centre, and there are huge numbers of flats being built which could lead to over-saturation, especially if lots of novice investors get involved into buying off-plan.If you were going to invest in Manchester, I would recommend a family home on the outskirts with good transport links.As always, you need to undertake extensive due diligence as the market can vary on a macro level.
Vanessa Warwick Landlord and Co-Founder of PropertyTribes.com **If you have got value from Property Tribes, find out how you can support it in remaining a free to use community resource**
Thanks for the advice, Vanessa - I was even thinking about introducing my contacts to this developer but not so sure now??!!
Is the market about to be saturated? Eventually almost certainly, but when is hard to say.You could gamble on it being a while off, or as Vanessa suggests and I have been doing buy houses in the surrounding areas.Many of the young professionals moving to the new flats are likely over the next few years to want family homes with good access to the centre for their work. Prices have started to rise.
Thanks for the advice, Peter.