Is this a good time to buy property in the UK (Manchester)?

[jolliejullie]

Hi all, I am asking here for opinions, but I am of course also speaking to experts before making a decision. I value the wisdom that I can get here though!

I am thinking about buying a property in the UK as an investment. I currently don't live in the UK, but for various reasons I am unable to buy property where I live and I am keen on stepping on the housing ladder (32 years old and single) both for future security and financial reasons.

I have now a good opportunity for a fully renovated (listed building) one bedroom flat in Manchester, which I could afford comfortably. I know there would be tax implications with owning property in the UK, and I am looking into the details to understand more.

Do you think this is a good time to buy property in the UK? Or would you recommend to leave it alone for the moment?

Maybe don't buy a property you aren't going to live in? Foreign investors are one of the reasons the housing market is in the state it's currently in.

@Caramel181

Maybe don't buy a property you aren't going to live in? Foreign investors are one of the reasons the housing market is in the state it's currently in.

I would plan on living there when I come back to the UK in a few years.

Is it in a good area of Manchester? It may not be a good investment in some parts of town. Do your research.

If it’s rented out then someone is making use of the property and paying into the economy.

House prices haven’t dropped for years and flare unlikely too. There’s lots of people chasing each property.

Go for it!

How confident are you that a 1 bed would still be a suitable property for you at 35ish, and that it’s somewhere you would be happy to live? My understanding of buying flats to let is that they aren’t especially profitable, but if it has a longer term benefit to you as somewhere to live then it makes a bit more sense.

I wouldn’t be buying a one-bedroom flat in Manchester as an investment, no.

(I’m from Manchester originally. It’s a great city, but it has several times suffered property price crashes because it has been overdeveloped, specifically the oversupply of one- and two-bedroom new build flats.)

@Haus1234

How confident are you that a 1 bed would still be a suitable property for you at 35ish, and that it’s somewhere you would be happy to live? My understanding of buying flats to let is that they aren’t especially profitable, but if it has a longer term benefit to you as somewhere to live then it makes a bit more sense.

Obviously I can't predict the future but at the moment there is no man in sight and no immediate plans for a family (whom with?) so I think there is a decent chance the flat could be suitable for me.

I have already put quite a bit of money into the financial markets and a solid private pension plan, so it feels like getting on the property ladder is the sensible next step to diversify my investments? I am still pondering though.

@NightmareSlashDelightful

I wouldn’t be buying a one-bedroom flat in Manchester as an investment, no.

(I’m from Manchester originally. It’s a great city, but it has several times suffered property price crashes because it has been overdeveloped, specifically the oversupply of one- and two-bedroom new build flats.)

Thank you for this great insight! This particular property sounds like the type you are talking about indeed.

I would be wary of buying a flat in Manchester at the moment, @jolliejullie - I live forty minutes out of the city, and until recently I worked in the city centre. There are developments EVERYWHERE and I really am not sure who's going to buy them - there's been an exodus out of the city centre since covid made working from home an necessity, and lots of businesses are doing hybrid working now so people don't feel they need to be in the centre.

Other things to be wary of are service charges - there are some dodgy contracts in place at the minute, where the annual service charge can just rise and rise, and I know some developments are having cladding issues.

Personally, I'd look at different types of properties - maybe in one of the towns or villages within commuting distance?