This year new tax changes designed to take the buzz out of the buy-to-let market began to bite and yet investors kept investing. Not in the over-priced south though. This time, the smart money moved north.
Foreign investors spotted the signs early and saw the tax benefits in buying many, & buying cheap. Others followed suit and though we’ve seen prices climb, the general feeling is that this only the beginning.
I’m about to complete on my 4th northern buy-to-let house search in as many months. This time it’s Manchester, without doubt a city that’ll benefit most from the lift in the north’s fortunes. With really significant investment projects taking place like the £1billion injection in the airport transformation project, the new southern bypass and HS2, to name a few, it’s hard to see how it could do much else. Not to mention having recently been identified as the top city outside London for direct foreign investment projects in the UK.
Remember as well, following Brexit the Government are determined to keep the United Kingdom, well, united. They intend to do this by moving money and investment that traditionally has stayed in London, in to the many large, innovative Northern powerhouse projects that are happening across the region.
If you’d like to get in on the act in Manchester or any other rising stars like Birmingham, Liverpool, Leeds or Sheffield, then get in touch.
A £125,000 terraced buy-to-let in south Manchester will cost you £30k with the mortgage taking care of the rest. You can expect a rental of around ££650/month. This represents a 6%+ yield. In this instance though it’s capital gain that should be your main motivator, as the north features more & more on UK and overseas investor’s radar.