The below article points out the best apartments in the city of Manchester to buy.
The yields are rubbish and out of the rent you still have to pay block management fees bringing the yield down further.
The chance of capital growth in the city centre could well be limited as continuous new trendier schemes come to the market. The continuous growth and number of apartments could limit resale values.
Your property value is also dependant on the ability of the block management company if they fail to keep the building nice, clean and appealing to the eye in the common areas there is little you can do. The ongoing management charges may well keep on increasing year on year and again there is little or no control.
Compared to investing in the areas such as Clayton, Moston, Gorton, Middleton and Openshaw all areas in the North and East of the city where you could currently buy property for £100,000 for a refurbished three bed terrace in Moston rented at £675 PCM or a 2 bed terraced rented near the MANCHESTER City Stadium in Openshaw at £600 PCM or a three bed quasi semi with front and rear gardens for £120,000 and rent of £700.
These properties are within 10 minutes of the city centre by public transport. You have a private entrance and no building management fees to pay. These homes are in demand by people who work in the city centre on relatively low incomes to the high flyers wanting to live in the city. There are many that work in the city that want to live within easy reach but in a quieter suburb with better infrastructure such as schools, doctors dentist etc.
There are 4 bed beached houses for £220,000 in the Charlestown area of the city that rent for around £900 or 2 bed terraced houses built 10 years ago for sale at £125,000 that fetch £625 rent and are very low maintenance
Areas such as Chorlton, Droylsden and Audenshaw have seen great Capital growth over the last few years however to purchase them now will show yields closer to the same as the city centre
The ideal investment property will return income and capital growth so the areas I have suggested show increased investment in the local infrastructure which is normally the start of a larger growth patern
There are many areas that fetch better yields and have more chance of capital growth were you have complete control over the property.