We have just secured the property detailed below for £83,000, which is in our opinion a very good buy. It is a 2 large bedroom brick and tile on street end terrace in well kept but very dated condition.
Hollinwood is an area just outside the M60 (and this house is very close to the M60) bordering on Failsworth which is on the inside of the M60 at that point. Houses in Droylsden (just south of Failsworth) have gone up to around £120,000 for a typical quasi semi or good terrace, similar houses in Failsworth have gone up to £105,000, yet here they are still lagging behind. We have recently agreed on another house in the area at £85,000, on another one (3 bedroom) round the corner at £89750 (the side streets around here go for £110,000+ for 3 bedders) so even though this one is on the cheaper main road, it is still, in our opinion, likely to catch up to at least to the mid-nineties very quickly. A couple of houses did sell cheaper recently, but the agent says that is because they needed a lot of works, and that this house is a very good deal even at the late eighties. They put it on at just under £90,000 reflecting it's very old fashioned (though well kept) condition, and the owners seem to have got fed up waiting (this is a very slow time of year and we often get reductions like this at this time of year) so they have come down to what we agreed to pay.
I lay out below an approximate financial prospectus - this is our view based on experience, but we cannot guarantee anything!
Purchase price £83,000
Finder's fee £2500
Legals £1250
Survey £350
Works allow £3000
stamp duty £2490
So total outlay £95590
Expected gross income £530pcm = £6360 pa = 6.7%
Expected net income allowing 10% management and average £750 annual maintenance = £4974 = 5.2%
At present very cheap buy-to-let loans this should produce an income even after interest payments.
Property prices in Manchester have been rising steadily over the last couple of years, without any dampening due to Brexit or other reasons. There is an opinion held by some major agents that as prices in the Southeast soften, prices here rise and that the NorthSouth price differential is likely to decrease over time. In our opinion this house has an immediate inbuilt growthg potential due to its proximity to other areas which have risen more. It is very conveniently located for cammunting into central Manchester and around the M60.
Please let me know asap if this interests you. We recommend it highly.
If you do want it, please give us the purchaser name, id, some proof of funds of deposit, and your solicitor details.
Best regards,