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robert gollings

Birmingham or Manchester?

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Hi all,

i have an investment property in London and I'm looking for another. 

I agree with the sentiment that London is probably over bought and not much room for further capital appreciation and rents to rise in the short to medium term.

I also agree that there's more room for prices and rents to rise in the north.

 

My question is, seems to me that more people are talking about Manchester, Leeds rather than Birmingham.

I know about the huge investment programs for all these cities but If we look at the driver (HS2) for these programs, Birmingham will deliver much sooner 2026 verses 2033 for Manchester and Leeds

 

I've yet to make up my mind on where to invest would just like to hear people's opinions.

 

thanks

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Hi Robert

 

Both...or neither!

 

Let me illustrate...

 

Think Altrincham vs. Moss Side or Harborne vs. Selly Oak...what are the characteristics of these suburbs and do they meet your investment criteria?

 

Some people would make Selly Oak and Moss Side work for them (possibly with more of a rental play), whereas others would prefer Altrincham and Harborne (with a greater emphasis on capital growth).

 

However, from a fundamentals point of view, Birmingham, Manchester and also Leeds have excellent prospects overall...it is the exact neighbourhood and your investment criteria & strategy that would make the choice right for you or not.

 

But for the record, I am a fan of and invest in Birmingham...just not all of it ;)

 

This may help: https://www.theguardian.com/best-of-birmingham/2015/sep/09/where-should-i-live-in-birmingham-find-your-part-of-town and I'm sure the equivalent exist for both Manchester and Leeds if you do a search.

 

Best

Richard

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I also invest in birmingham and richard is spot on regarding the different areas and yield versus growth.. Birmingham is also very competitive from a investor point of view so good deals in good areas are difficult to come by. I've done 5 BTL's and am now investigating flat conversions, commercial to rsidential and small developments as my next step

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Well said guys, some parts of Birmingham are definitely up and coming but you need to look at the bottom-line. How much is left for you at the end of each week/month? 

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On the basis that London and the surrounding areas have plateaud (for now) I scouted Brum at the weekend and will be buying there as well as Manchester.

 

I'm finding it really hard to decide between yield or capital growth. Ideally I'd like a balance of both however determining the areas is proving to be a nightmare. Equivalent size propertes merely streets apart can vary wildly!

 

Solihull sounds like a safe bet for capital growth however even if I haven't missed that boat (?) what good is capital growth if I can't release it? (I'm referring to the new stress rules on mortgages).

 

So, whilst I'm hedging my bets between both cities I also need to make an effort to hedge within each city between yield/growth! Not easy when you don't really know the place.

 

 

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I invest in birmingham and solihull as BTL is a expensive option with low yields so I haven't gone for that yet - obviously capital growth is excellent.

The adjacent areas are a a godo mix of both growth and yeild so i tend to look at acopcks green, olton, shirley, hall green, kingsheath, kinsnorton, sheldon etc but you do have to be careful as most areas will have some dodgy sections as they join other areas

yiled wise you have to go further north in birmingham so erdington, perry barr etc

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