There’s always been some sort of divide and a slight rivalry between the Northerners and Southerners, but not when it comes to property investment; in fact, it’s bringing us all closer together. How sweet?
House prices in the North are nowhere near as extortionate as they are down south, so it’s understandable why people living in areas such as London are looking elsewhere for property investment and turning to Manchester to fulfil their dreams. And if the southern investors knew about The House Crowd’s crowdfunding platform for property investment, they’d be all over us like a rash!
Research from property investment experts Sequre Property Investment, found that one third of property investors in the North are from Greater London, and two thirds are from the South East. And with the development of Media City UK, it’s helped to attract further investors to Manchester. With housing prices in the South being too high for property investment, investors are being tempted to step over the boarder to cities such as Manchester, Salford, Preston and Liverpool to continue with their buy-to-let investment, as they’ll receive stronger returns.
Property investments in the North have some additional advantages too, including a lower entry level, which means they require little borrowing and the inevitable average cost of a home is significantly lower, plus there is a strong demand for new tenants. Findings from the research also showed that the average gross yields in Manchester is 8% compared to 4.5% in London, and the average cost of a standard two bed property investment in Manchester is around £90,000 which is significantly lower than a £300,00 price tag that you would pay in London. It also means that with the new changes being made to the pension pot in April 2015, retirees will be able to invest their money in a property in the North with little hassle.
So Manchester wins again! So whilst the southerners have their eyes on property investment up north, imagine throwing crowdfunding into the mix? They’d never leave!