Singing Pig

I am a new to the property investment game, just purchased my first a couple of weeks ago. I have bought a smartpad at the Harbour City development on Salford Quays, Manchester. Could anyone give me their views/predictions of the rental income I should get on it? Completion is 2010.

Thanks. 

Call a few leasing agents in that area and you'll get a good idea. Shouldn't you have done your due diligence before your purchase? I hear warning bells though - new build and Manchester!

What did you pay?

Rental from £450 PCM

Prices advertised from £109,000 to over £800,000 !!!!!

Rentals advertised from £450 to £2,000 per month !!!!

Smartpad = Studio Flat...did you pay over the odds or a good deal, all depends on the price you paid.

 

Jenny,

 

You should have done some research before you undertook this purchase, Buying a 'smartpad' in the current market was not a 'smart move'. There is a gross oversupply of studios and apartments in Manchester, and most city and town centres. At recent auctions such properties have been going for not much more than half the original selling price - if they even got a bid, that is (did you see last night's programme on ITV - 'Flat Broke' ?). Noone can predict rental returns in 2010, but I think there will be even more empty properties like yours chasing tenants. If you have only paid a 5% deposit, walk away now to save money & heartache in the future.

Isn't Manchester especially Salford the area of biggest property falls in the country.  They keep on using it as an example of 50% price falls and mass repossessions on every TV channel.  On top of that rental yields are low and falling due to mass over supply of flats.

 

It might be a good place to pick up a 2-3 year old newbuild in 2011 but not buying off plan now.

 

Best of luck, its going to be hard. 

I know this is an old thread, but just read it and felt compelled to reply.

I note the other people who replied were from Aberdeen, Middlesborough, S.E. and an undeclared location.
I actually live in Salford Quays.

Yes, there are a lot of new builds springing up and, yes, we have seen a softening of prices over the past few months, I'd say on the whole a market drop of about 5%.

Luckily, by 2010 the first phase of the MediaCity:UK development will be nearing completion and we'll start to see the influx of the relocated BBC staff, as well as staff for the other companies that have committed to MediaCity:UK (ITV, University of Salford etc).

By 2012, when MediaCity:UK is due to be completed, there will be a serious demand for property in Salford, notwithstanding that we might be looking at a cost of about £20 a day to travel into and out of Manchester/Salford by car due to the proposed road charging (dubbed toll tax) scheme.

While it's impossible to predict what rentals will be like in 2010, I would expect a good apartment, well managed, in a good location to get top money for the area.
Harbour City is in an excellent location for both the tram (Harbour City has it's own tram stop), MediaCity:UK and the Lowry. It's very easy and quick to the centre of Manchester on the tram (or by car).

A quick search on rightmove.co.uk shows there is lots of competition to rent at Harbour City, but rents are high (typically £800-£900+) for 2 and 3 bed apartments.

If you are still around, reply with the name of the actual development and I'll see what I can come back with.

Obviously, the advice above about doing due diligence before buying was good advice. My only question is, can you handle void periods and for how long?
Hope that helps (and your still around!)

The apartment would go for £450 but bare in mind that when the BBC relocate you'll be at a better position so there is light at the end on the tunnel so i wouldn't be making anything for 2/3 years