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Manchester vs Salford vs Bolton/Wigan


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Hi,

 

I've got a £35k deposit in the bank but i'm struggling to decide on where to invest. I'm based in Bolton but work in Manchester city centre and like the idea of self-managing.

 

I have formed a LTD company so will need to buy properties with a min value of £75k to make them mortgageable. Ideally, looking for a light refurb to get me started but the problem is where?

 

My views are:

 

Manchester - still booming and will struggle to get anything decent under £130k near the city centre but possibly the best shot for capital growth?. 

Salford - benefitting from the ripple effect from Manchester and Media City but fundamentally still some pretty rough areas. More uplift to come or has it seen the majority of the uplift already? 

Bolton/Wigan - some nice areas and good transport into Manchester - lower values and less competition but less capital growth potential?

 

Any thoughts/tips?

 

Cheers,

 

Rick

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Hi Rick,

 

All three areas are great for investment. I would focus on getting the best deal possible rather than spending time on deciding which would be the best area.

 

My opinion in the long term is that all will do well. I think you'll see capital growth in all three with Salford, Bolton and Wigan all benefiting from the Manchester ripple effect with plenty of uplift still to come. Wigan has also been earmarked for a HS2 station which can only have a really positive impact.

 

Good luck!

 

Rob

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Parts of Salford are OK but some still troublesome areas in my opinion..

If you live in Bolton you should have an idea of what the area is like, buying close to your home at the minute would greatly help your self managing.

 

Prices are rising across all of Manchester at the minute. Cheaper areas however may be deemed "rough" by some.. Middleton, Salford, Whitefield, Radcliffe, parts of Bolton Little Hulton area then east Manchester so Hyde, Gorton etc.

 

Who told you that you cannot mortgage a house under 75k in a LTD company?

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Thats correct rick. Even I got a similar reply from the  mortgage adviser I am dealing with. He told me that for BTL for ltd company, minimum property value should be 75K although there is 1 lender which accepts minimum property value as 60K which is Aldermore bank. 

 

If anyone knows any lender which accepts less than 60k of property value for lending to ltd company then please suggest. 

 

-Chiran

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  • 4 weeks later...

Hi Rick,

 

I'd like to expand on the point made by Rob B and maybe offer a slightly different perspective and why I wouldn't necessarily go for the 'best' deal.

 

Lets say you find a property which you buy for market value at  £100k. You keep this property for 5 years and you bought in a good area where you are getting 5% annual capital growth. In 5 years time it is then worth £127,628.

Compare this with a property in a less desirable area with lower capital growth. You may get a property worth £110k at a discount and pay £100k. If prices here rise by 2% / year then at the end of the same 5 year period your property is worth £121,448. You can then see that already the benefit of the discount has been eroded.

 

Obviously none of us have a crystal ball and can forecast the capital growth, but generally I would prefer to buy something at market value in an area with good capital growth potential, than a bmv property that will offer less growth. 

 

Iain

TPH-Iain-Mathews.jpg

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