The greater Manchester area has seen a significant increase in renting statistics, which suggests a large decrease in the rate of home ownership. Private renting clients rose to 25% last year from 6% in 2015, while home ownership rates dropped up to 15 percentage points over the last decade. Why is this the case, and how can you benefit out of investment in the area?
Why home ownership is declining in Manchester
The key factor responsible was the disparity between average incomes and average costs of owning your home. While people made just under £26,000, the average price for a small flat is just under £150,000. Since 1990, the average price for a house has increased nearly six times, whereas the average wage has only risen by only just over double the rate. This disparity is responsible for a chronic inability to afford housing.
People are also less likely to get mortgages than they were before. There are more stringent checks and requirements, which prevent people from qualifying for mortgages. They may also fail to reach the required minimum deposit amounts, usually 10% of the value of the home they would like to purchase. The difficult parameters have made owning a home nearly impossible.
How to capitalize on the rate of growth of rental property
Manchester is a continuously expanding region. A 2011 census has the region as having the biggest rate of growth outside London. The demand for housing is high, which explains the difference between the rise in renting rates and decline in home ownership. There is a market for housing in Manchester. You can invest in rental real estate properties that are coming up in the area. You should remember a few important tips to help you succeed.
A property manager will help you manage multiple properties and reduce the stress of being a landlord on any investment you could make.
Your expenses can be reduced by carrying out regular and early repairs and maintenance programs. You will spend some amount on making sure everything is running perfectly, but will be spared from heavy expenses that may arise out of neglect.
Your expectations of the investment should be reasonable. It will pay out, but you need to be patient and to pick a real estate agent who will develop a marketing strategy to improve your exposure.
You should only work with and take advice from people you trust. This does not have to be your friends and family members. Find people who you have built a trustworthy working relationship with. They will help you make the best decision, point out when you are making flawed judgement and help you achieve success with your investment.
You should also remember that real estate investment is long term, and practice a patient approach. You do not need to all in today. It allows you ample time o research, hire a team and develop the best strategy within your resources and plan. This will improve the likelihood that your investment in rental property in Manchester is successful.