Salford has been named one of the top university towns for buy-to-let investment, ahead of Manchester, Leeds and London.
Data from Property Partner shows that Salford is delivering a median rent of £750 per month, a gross annual yield of 6.8% and an average house price of just £131,863.
The city stands in fourth position in the buy-to-let league table, behind Aston & Birmingham, Teesside and Sunderland in first place, recording gross annual yields of 10.6%.
According to the Mistoria Group, specialists in high yielding property investment, landlords can achieve returns of up to 7-10% and a combined yield with capital appreciation of over 13% per year if they buy the right property in the right part of Salford.
The Managing Director of the Mistoria Group, Mish Liyanage, explains: “Salford is a booming university city and is a great place to invest. It offers good rail and road links, located near the M602 and M60, together with a great bus and tram service. With a wide variety of bars, restaurants, together with good sport facilities, three great retail parks and wide, open spaces of parkland, Salford has something for everyone.
“If landlords are savvy and carefully select where they invest, they can enjoy excellent gross annual leads. Rental income, especially for HMOs [Houses in Multiple Occupation], can vary dramatically in Salford, depending on which postcode you look at. For example, Eades Street (M6 6PG), Seaford Road (M6 6DD), Blandford (M6 6BE) and Welford Road (M6 6BB) are some of the most expensive areas in Salford, netting on average £110 per room per month, as these streets/roads are very close to the university. However, generally, students pay up to £85-£105 per room per month, including bills, for high quality student accommodation.”
If you’re thinking of investing in student property in Salford, Liyanage has some tips: “We know that the most important considerations for students when choosing rental accommodation is space, location and price. Our research shows that the majority of students in Salford want to live in high quality, shared accommodation with good internet access and affordable bills.
“Student accommodation can offer a number of attractive features to investors. The yields are high, as students settle for less space than other tenants, occupancy is typically very good, and it is neatly counter-cyclical, as more people go to university during economic downturns.”
It seems that Salford really could be the best bet for landlords seeking investment opportunities in 2017!
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