Why should you invest in the Manchester property market?
Low prices and high yields are just a couple of the advantages of investing into the Manchester property market.
As a property buyer in Australia, you might be overlooking the benefits of investing overseas in places such as Manchester in the United Kingdom.
Being the second largest city in the UK, Manchester is like the Melbourne in Europe for its liveability, only with much better housing affordability.
Director of international real estate advisory firm ARE Property, Jolene Teo, believes Manchester is the ideal place to invest in, being an up-and-coming city amongst the stable UK property industry.
Manchester is experiencing unprecedented growth.
The city’s growth is verified by the large amount of infrastructure spending in the city on projects such as Manchester City Airport.
Especially the apartment market in Manchester is showing strong growth with from 12-13% of growth last year. Manchester is showing the beginning of an up cycle with rental market shortage and high rental yields.
This is backed up by research, which shows 63% of the residents in Manchester are private renters, which is 30% higher than the national average. Market researcher JLL predicts a 20.5% growth in rental prices from 2017-2022.
Compared to the apartment markets in Australian capital cities that have been stagnating in recent years, Manchester’s property market is booming.
Essentially, Manchester has lower prices, higher yields and stronger growth than main cities in Australia.
Employment growth in Manchester is also one of the drivers of the housing market boom, with large corporations such as BBC choosing Manchester as their headquarters.
As a result, the vacancy rate in Manchester is very low because more workers are looking for a place to rent.In recent years, many people are migrating from other parts of the UK to Manchester, drawn by its liveability and affordability. So while house prices are dropping in London, Manchester is seeing stable growth.
However, this beginning of the up cycle will not last long as the city’s property market quickly matures.
The cost of investment in Manchester is relatively low at the moment, but house prices grow faster than rental prices, so it’s best for you to get in early.
So what is the practicability of investing in the Manchester property market?
Unlike Australia, where foreign investors are restricted in getting home loans and paying hefty stamp duties, the UK is much more relaxed towards foreign investors.
Financing is available for qualified overseas property buyers, who are not limited to buying only off-the-plan properties in the UK.
The strong growth and yields from the Manchester property market will appeal to you if you want to diversify your investment portfolio.
The UK housing market is very stable and the currency is also strong, making it an ideal place to invest in.
Support is available to you if you would like to take your investment idea further, with agencies like ARE Property helping you access handpicked stocks with pre-negotiated incentives.
ARE Property works with top local UK developers such as Alliance to connect investors with high-quality stock from reputable developers and builders.
It is important to understand your investment needs and capability first before buying an investment property. Once you decide to invest in Manchester, ARE Property will also provide follow-up services to make sure you have a worry-free experience.
Qualified investors will have a chance for a free consultation with ARE’s Melbourne based accountants and tax advisors, who also have affiliation with UK tax advisors to work together and ensure you get professional advice.