Within Greater Manchester we have many towns that make up our ﬁne County, from the up market posh areas of Didsbury and Cheadle, all the way to the no nonsense areas of Bolton, Bury and our very own Rochdale.
In fact I have a few landlords from Didsbury, one in particular who has a decent portfolio of buy to let property in Bury and Rochdale. Let’s be honest Didsbury is a sophisticated town which enjoys a well-earned reputation for stylish and convenient living close to abundant countryside and commons. The thriving High Street, offers a comprehensive range of upmarket shopping facilities and the schools are highly sought after having excellent Ofsted results. All these factors make the average value of a property in Didsbury £289,300.
Our town of Rochdale has a good choice of shops, banks and restaurants, but not in the same league as Didsbury’s. Our town offers excellent rail and road links and there is a good choice of schooling within the area, including our award winning 6th Form College (Ofﬁcially Outstanding - Ofsted 2013). Hopwood Hall College and a number of decent primary schools including but not limited to,Whittaker Moss Primary School and St Michael’s in Bamford. Average earnings do tend to be lower and employment also, which when combined make the average value of a property in Rochdale around £137,000, less than half that of Didsbury!
Back to the conversation I had with the Didsbury landlord, we got talking about the two property markets and in particular, how Rochdale had outperformed Didsbury in terms of its recent property market performances. The landlord owns one of the two bedroom apartments in the College Bank, they sell for around £42,000 and rent for £350 per month giving a 10% gross yield each year. When you consider that similar properties in Didsbury only achieve a yield of 3.53% per year, the yields in Rochdale are 183% proportionally higher than Didsbury. We must remember however that yield is not the sole consideration when investing in buy to let properties. Areas and towns which offer good yields normally suffer from poor capital growth.
However, this is not the case in regard to the Rochdale and Didsbury property markets because in the last 12 months property values in Rochdale have risen by an impressive 9.2% whilst in Didsbury, they have only risen by 6.9%. Now it is fair to say that two bedroom apartments in the College Bank area may not be every landlord’s cup of tea,which is why a lot of my landlords are buying more traditional property, such as terraced and small semi-detached houses which are achieving between 6.5% and 7.5% annual yield. So, with capital values in Rochdale rising by the already quoted 9.2% Rochdale landlords have been achieving combined gross annual returns in excess of 15% per year! How much does the average Bank or Building Society savings account pay…?
By keeping an eye on the local market, I am able to judge if a property is good value to buy for a landlord. I give this advice and opinion at no charge to anyone who asks, be they an existing landlord of ours, or indeed another agent. I will also give it to anyone considering becoming a buy to let landlord for the ﬁrst time. I do not charge for this service, because if I offer you an honest and straight forward opinion, you may consider using my company to manage your property. However, I must stress there is no obligation to do so. Why not pop in and see us or call 01706 648277 to book an appointment or free market appraisal.