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Investing in East Manchester


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Hi Everyone, 

 

Looking for some advice. I have just returned from a couple of days viewing property in Manchester. I am totally new to investing and to Manchester. I found a property in a town in East Manchester called Openshaw. It is a large 4-bed property on the market for £104k. It needs a bit of work, I guess, but nothing major. The rent that can be achieved on this, according to the agent is between £650- 750 per month, depending on the refurb. The Done UP Value of the property is only £115K. So once the property is refurbished I will have paid more money than the property is currently valued at. What do I look at, the great cash flow it is generating or that it is above market value? Thanks Chim

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I would definitely start by doing your own research around what rent you can expect to get PCM and not take the agents word for it. I would also be looking to see what other properties sold for in that area and then compare that with your buying price + renovation cost.

Would be really interested to see how everything goes. Keep me updated!  

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Hi James, 

 

It was marketed at £95k but someone has put an offer in at £104k. At £95k it Worked, financially, but at £105K+ it takes it above market value, only slightly, but still above where we want to be. The question was really that as Manchester is booming right now, would it be an idea to take the plunge and buy the property even at the elevated price and sit on a great cash flowing property, waiting for it to appreciate?

 

Chim 

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Hi Martin, 

 

Thanks for your response.

 

I have done a bit of research, the rents are around the £650 mark, depending on the quality of finish of the property. I was thinking as it is a 4 bed, 2 reception house, it may be worth buying it, renting it out as a single let and then in time convert to a HMO. 

 

Will keep you posted as to what happens. 

 

Chim 

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Personally if I think a property is worth x I won't pay x+1 for it.

 

You have to bear in mind that some people are buying with their heart for a property they want to live in and have fallen in love with. Investors should be buying with their brain.

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2 hours ago, chim diwan said:

That is very true. Easy to forget sometimes. 

 

Will evaluate the property again before making any silly offers.

 

Thanks for the advice 

 

Chim 

 

Try not to be influenced by other people making offers.  Work out your numbers and stick to them.  If you do not get this one, get the next!

 

Learn to be disciplined, you get your main value when you purchase.

 

 

Darren

 

 

www.fmp-investments.com

www.f-m-p.uk

property@f-m-p.uk

I am looking for private financing

with a 10% ROI - get in touch

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  • 2 weeks later...
1 hour ago, Roger Perry said:

It's obviously being advertised above market value.

 

If it is selling quickly then not sure how it is advertised above market value, as surely market value is what people are prepared to pay?

Darren

 

 

www.fmp-investments.com

www.f-m-p.uk

property@f-m-p.uk

I am looking for private financing

with a 10% ROI - get in touch

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