Benefits of Investing in Completed Properties in Manchester (2024)

Apr 16, 2024

Manchester’s property market presents a vibrant and dynamic environment, rich with investment opportunities. While off-plan developments attract considerable interest, there exists a strong argument for the investment in completed properties. This blog post aims to delineate the numerous advantages of investing in completed properties within Manchester.

Key Takeaways

 

  • Immediate Rental Income: Start earning from day one with completed properties.
  • No Construction Risks: Avoid delays and quality issues, invest in what you see.
  • Quick Appreciation: Properties in hot markets like Manchester can gain value fast.
  • Inspect Before Investing: Assess condition and location firsthand for better decisions.

 

Why Invest in Manchester?

 

Robust Economic Growth

 

Manchester boasts a thriving economy set to surge, with a projected Gross Value Added (GVA) expected to exceed £2 billion by 2026 compared to 2022. It stands as one of the UK’s fastest-growing economies, surpassing the national average growth rate.

Strong Rental Demand

 

Manchester enjoys a sizable student population exceeding 100,000, with a notable 46% of graduates opting to remain in the city post-graduation. Coupled with an influx of young professionals drawn to Manchester’s expanding job market, this creates a steady and robust demand for rental properties.

Exceptional Rental Yields

 

Manchester offers investors remarkable rental yields, averaging between 6-7%, notably surpassing the UK average of 4.71%. Certain areas such as Openshaw and Ordsall can achieve even higher yields, reaching up to 7.6%.

Potential for Capital Appreciation

 

Property prices in Manchester are on a steady upward trajectory, with an anticipated 5% increase projected for 2023. Looking ahead, the city is poised for substantial growth, with forecasts suggesting a remarkable 19.3% price appreciation and 21.6% rental growth by 2027. This positions investments in completed properties in Manchester as promising long-term ventures.

Thriving Regeneration

 

Manchester is in the midst of significant infrastructure and urban revitalization initiatives, including the Northern Gateway and The Corridor Manchester projects. These transformations are reshaping the cityscape, enhancing its appeal as a desirable destination for residents, businesses, and investors alike.

Enhanced Connectivity

 

Investments in transportation infrastructure, notably the expansion of the Metrolink and the forthcoming High-Speed Rail (HS2), are bolstering Manchester’s connectivity and accessibility. These improvements further elevate the city’s allure, making it an increasingly attractive hub for commerce and residential living.

Benefits to Investing in Manchester Completed Property

 

Immediate Returns

 

One of the standout advantages of investing in completed properties is the ability to generate immediate rental income. Unlike off-plan investments that require time for construction and occupancy, completed properties are ready for tenants to move in right away. This means investors can start earning rental income from day one, providing a steady stream of cash flow.

Reduced Risk

 

Investing in completed properties mitigates certain risks associated with off-plan developments. With a completed property, investors can physically inspect the asset, assess its condition, and accurately gauge its potential rental yield. There are no uncertainties surrounding construction delays, cost overruns, or changes in market conditions, offering a more predictable investment proposition.

Established Location

 

Completed properties are often located in established neighborhoods with established amenities and infrastructure. In Manchester, investing in completed properties allows investors to tap into the city’s thriving communities, where demand for rental accommodation remains consistently strong. These locations offer a sense of stability and security, which can be reassuring for investors seeking long-term capital appreciation.

Proven Track Record

 

Completed properties come with a track record of rental performance and market appreciation. Investors can review historical rental data and property valuations to make informed decisions about their investment. This transparency provides valuable insights into the property’s income potential and capital growth prospects, helping investors assess its suitability for their portfolio.

Financing Advantage

 

Securing financing for completed properties is often easier compared to off-plan developments. Lenders tend to be more willing to extend loans for properties that are ready for occupancy, as they pose less risk than properties still under construction. This accessibility to financing can facilitate smoother transactions and enable investors to capitalise on attractive investment opportunities.

Diverse Portfolio

 

Investing in completed properties allows investors to diversify their portfolio across different asset types and locations. Manchester offers a diverse range of completed properties, including apartments, townhouses, and single-family homes, catering to various investment preferences and objectives. By diversifying their portfolio, investors can spread risk and optimise returns over the long term.

In summary, investing in completed properties in Manchester offers investors the opportunity to benefit from the city’s strong economic growth, high rental demand, attractive yields, capital appreciation potential, ongoing regeneration, and improved connectivity – making it a compelling property investment destination in the UK.

FAQs

 

What makes Manchester a unique investment location compared to other UK cities?

 

Manchester’s unique appeal lies in its robust economic growth, thriving job market, and significant regeneration projects. The city’s economy is outpacing the national average growth rate, driven by a diverse economic base and proactive development strategies. Additionally, Manchester’s strong rental demand, bolstered by a large student population and influx of young professionals, combined with exceptional rental yields, make it an attractive investment destination compared to other UK cities.

How does the projected Gross Value Added growth affect property investments in Manchester?

 

The projected GVA growth signifies a strengthening economy, which typically leads to an increase in employment opportunities and population growth. These factors collectively drive demand for housing, both in terms of rent and purchase, thereby potentially increasing rental yields and property values over time. Investing in Manchester amidst this economic expansion positions investors to capitalise on the ascending property market dynamics.

Can foreign investors purchase completed properties in Manchester?

 

Yes, foreign investors can purchase completed properties in Manchester. The UK’s property market is open to international investors, and Manchester, in particular, has attracted a considerable amount of foreign investment due to its strong economic indicators and property market potential. However, foreign investors should seek legal and financial advice to understand the buying process, taxes, and any restrictions that may apply.

DISCLAIMER

This guide is intended solely for informational purposes and should not be considered as investment advice. For those in search of financial guidance, it is advisable to consult with a financial advisor authorised by the FCA, to receive regulated advice tailored to your investment choices.

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