The Progressive Property Podcast Property News: Why Manchester is The Best Area To Invest and Market Update
Kevin McDonnell discusses this weeks property news as Aldermoore’s ‘Buy To Let City Tracker’ identified Manchester as the best city in the UK to invest in. Aldermoore stated that the short term returns through yield and long term return over ten or more years as two of the reasons why the northern city is the best for property investment. Kevin discusses the impact the recession will have on peoples property preferences with many people likely to downsize and turn to HMO’s. Kevin also shares whats new in the Progressive Property Community and poses the question of what’s better houses or flats?
KEY TAKEAWAYS
Weekly Property News
- According to Aldermore’s Buy To Let City Tracker, Manchester is the best city to invest in. The tracker assessed 5 key indicators that impact desirability, these can be identified as average total rent; short term returns through yield; long term return over ten years; the lowest number of vacancies as a proportion of total housing stock and the percentage of the cities population in the rental market. Manchester performs well for rental returns and long term house price growth. More importantly, it is one of the biggest rental markets in the UK.
- Many people are saying because of COVID-19, people will no longer want to live in shared accommodation. However, along with the pandemic there came to a recession meaning people will have less income and will be looking to downsize to save money. HMOs (Houses of multiple occupancies) are the cheapest part of the market. In the previous financial crash, the HMO sector boomed as many people were looking to make cut backs. Many young professionals who can afford a one-bedroom flat often prefer to live with others.
- Property Investor Today gave some advice on how to convert and invest in HMO’s for them to be successful. Make sure the property has a workable workplace as many people will be working from home. Ensure the properties kitchen has as much storage as possible as well as ensuring the bedrooms have ample wardrobe space. In the coming years, service will be key, ensure you provide the first-class service to your tenants.
Progressive Property Community News & Discussions
- What is better to invest in houses or flats? Flats usually have a higher turn over of tenant than houses as well as often being a leasehold property meaning you are likely to have yearly service charges. Another thing to think about with flats is ensuring the building does not have any cladding issues. The service charge is often steadily increased over the years as well as the complex issues that arise over communal areas. Buying freehold houses and converting them into flats allow for good yields and higher tenant turnover.
BEST MOMENTS
“What do you need to be successful?”
“It is not as clear cut as ‘there will be a decline’ or ‘there will be a rise’.
“Think about what you would want in your house, and that is what your tenant will also likely want.”
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ABOUT THE HOST
Kevin McDonnell is a Speaker, Author, Mentor & Professional Property Investor. He is an expert when it comes to creative property investment strategies. His book No Money Down: Property Invest talks about how to control and cash flow other people’s property to create financial freedom.
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