Manchester – the New Hotspot for Property Investment
Property investment is one of the best forms of long-term investment, as well as the most common form of hedge against inflation. It offers mid-long term capital growth, rental income, tax benefits, and in many instances, portfolio expansion. But as the local current market starts to slow, many investors would look elsewhere to find a worthwhile investment. Some look at neighbouring states, while others may look overseas to places like Manchester in the UK, an opportunity we have identified recently.
The property market in Australia Melbourne and Sydney have been some of Australia’s best investment spots for years. But Sydney’s growth is easing off and Melbourne is about to reach a peak. This is not uncommon, it’s just the cycle of the real estate market. Unfortunately, investors who missed making a purchase during its growth phase or who are now looking to expand their current portfolio, these markets can only offer limited opportunities.
Why Manchester and not London?
London is a cultural icon. As the capital of the UK, it has enjoyed a lot of growth in the last 15 to 20 years. But like some key cities in Australia, the market has slowed, and it may no longer be the best choice for prospective investors. That honour has now been given to Manchester.
Manchester is an international brand often associated with its football teams. But in the next five years, it’s going to be known as a property investor’s dream.
There are many factors that have made this possible, starting with…
- Tech companies have made it their home
Manchester has become one of the tech hubs of the UK, attracting businesses and startups to make their home there. Not only that, Google now has a major presence in Manchester, along with the BBC. This kind of business growth means that…
- Employment opportunities abound
New companies equal new jobs. While this helps with local employment, these kinds of jobs attract job seekers from all over, which leads to…
- Migration increasing property demand
An influx in the population due to job growth means they need somewhere to live. But jobs are not the only reason that Manchester’s population is on the rise. Manchester is one of the most popular student destinations in Europe. Students from all over head to Manchester to complete their studies at one of Manchester’s four universities. With 50% of students planning to stay in Manchester when they graduate, it compounds the demand for rentals.
- More people means more infrastructure
To support the growth, Manchester needs to build. They are going vertical with apartment blocks in the city to meet the demand.
The focus on increasing housing stock makes Manchester a great investment option. Their focus on apartments is ideal, as apartments are a sound investment option in any location. JLL, a major UK market researcher, predicts that there will be a 20.5% rental price increase between 2017 and 2022.
All these factors make Manchester one of the fastest growing cities in the UK. It is currently in the beginning of its up cycle, the best time to invest.Even better, you can use your superannuation to purchase your next investment (if you have a self-managed superfund). If you’re thinking of going down this route, it’s best to talk to your accountant or financial advisor.
Is this your next investment?
While some investors have natural foresight, the next best tools to this would be relying on what statistics and professional research shows.
Property investment is all about the long-term but finding the right market makes all the difference. Manchester is set to become the next big option for investors, especially those overseas.