What does 2016 have in store for the South Manchester Property Market?
Well it’s the second week of January. The debauchery over Christmas and New Year has ended and fast fading into the distant memory and people are starting to get their acts together again. Whether this is health-wise, business-wise or perhaps investment-wise.
I have taken a number of calls in the last week from investors who a very keen to purchase an investment property before the stamp duty rise increase comes into play in April. For those of you that aren’t aware about the stamp duty increase just google it and you will certainly numerous article. In simple terms there will be a 3% increase in stamp duty on buy to let properties in South Manchester and indeed the whole of the UK.
So what does this mean for investors in South Manchester? Well without doubt there is going to be a rush to buy and complete before April. Alongside that it’s highly likely prices will be pushed up again in the first three months of the year. If you are buying now you will need to make sure you’ve got a very proactive solicitor so don’t go for the cheapest!
My personal opinion is prices will then level off after April as the buyers who could just about afford a buy to let property in South Manchester realise they will need to either stump up another 3% , go somewhere cheaper or don’t buy all together.
I don’t think the increase in stamp duty will completely put investors off though. It just needs to be seen as an additional up-front cost. However it is worth bearing in mind that the cost of the stamp duty is claimable against your capital gain when you come to sell the property but this does mean you’ll have to buy and hold the property for a longer term. This in my honest opinion is where you get the bigger wins – by holding longer term.
The next big thing to affect investors this year will be the change to tax relief on buy to let mortgage interest. This certainly means it will be more important to understand your financial situation and whether an investment will work for you. If you don’t have an accountant now will be the time to hire one! This change however is being strongly contested by landlords across the UK.
My opinion is South Manchester has a lot going for it and there is a lot of developments on the horizon which will contribute to the improvement of the area. I believe investors will continue to invest, residential buyers will continue to buy and property prices in South Manchester will continue to rise. If I had to speculate on a number I’d say 5-6% growth but who knows what might happen as a result of everything above!
I wish you a Happy and prosperous 2016 and as always if you have questions about property investment in South Manchester or would like a second opinion on a purchase you are considering then please do give me a call or send me an email and I’ll be more than happy to help!