Stockport properties come in all shapes and sizes!
I recently attended a local property event in Stockport, at the event I got recognised as a local agent. A question I was being asked repeatedly is ''what is the ideal property to invest in, in Stockport?'' So I thought I would share my thoughts with you below.
When considering a buy-to-let purchase what is believed to be a good deal will vary from client to client. Everyone will have a different budget, but also preference on location, style of property, condition, etc. That isn’t unusual, no different to everyone has a different taste in music.
It has been well documented recently that the additional 3% stamp duty rise for buy-to-let purchases coming into place on the 1st April 2016 will affect the market, and opinions on that also vary, but I am already seeing a change in requirements of some investors in that they are lowering their budgets and considering smaller properties to avoid paying out more than needed on tax.
I have always been of the opinion personally that “spreading the risk” is wise if you have a large portfolio. A few flats, a few houses, a couple in Davenport, a few in Edgeley, maybe one in Offerton or Heavily, makes sense. All your eggs in one basket is a risk if something unpredicted were to occur.
I am also of the opinion that buying two houses for £90,000 is better than one house at £180,000. Whilst many try to avoid the 2 up 2 downs due to the capital not being as high. If you choose wisely two houses at £90,000 might rent for £550-600 a month each, but you’d struggle to find a £180,000 house that would rent for anywhere near £1200.
Then there is the view that these small 2 up 2 downs change hands more regularly than the larger houses, so for longevity of tenancy buying a larger 2 bedroom house might be wiser. But then these houses are rented by families with children, and children might lead to more wear and tear on the property, the “what if’s” are endless.
One thing is for certain, demand for both in the rental sector are high which means there’s room to trial many different strategies.
In short, don’t assume. Speak with a local expert, the local agent, and ask them what they think about your plans. Ask them to cast an eye over the property you are considering buying. What are the pro’s, and the con’s.
If you are a landlord or thinking of becoming one for the first time, and you want to an honest opinion irrespective of which agent is selling it, then feel free to get in touch!
Iif you are in the area feel free to pop into the office, we are based at 20 Bramhall Lane, Stockport, SK2 6HR, there is free parking and the kettle is always on.