BYDOMINIC SMITHERS (21:45, 12 FEB 2017)

You only need to look up at the cranes which dominate the Manchester skyline for evidence of the region’s booming property market – but it’s not all about big developers.

Investing in property – whether it’s a run down terraced house or a ready-made purchase to let out straight away – is a fantastic way to make money, whatever your budget.

So, we’ve quizzed estate agents, developers and investment firms to put together a guide on making money from the local property market.

To break it down we have split it into five different models; student lets, immediate return, long term investment, off-plan developments and ‘fixer uppers’.

Here is everything you need to know if you’re thinking of becoming the next Sarah Beeny.

Long term rental investment

Wythenshawe

Why?

South Manchester has a combination of good schools, great transport links and a variety of housing stock, which makes it a good option for anyone looking for a relatively stable place to invest. And our experts suggest looking at Wythenshawe in particular.

The extension of the Metrolink service to the area is already causing increasing demand for property there.

Rob Jones, director of Property Investment UK, said: “The infrastructure in business and commerce near the airport is certainly having – and set to continue to have – a ripple effect on demand and house prices are continuously increasing.

“Wythenshawe I would definitely say is part of that and should get growth as well.”

A spokesperson for Manchester Airport said: “The growth of Manchester Airport also brings benefits to the surrounding communities and the wider region as a whole in a number of ways. From job creation, increased inward investment/tourism and economic benefits from our annual dividend, a growing Manchester Airport is a positive for millions of people.”

Where?

Over the years, some areas of Wythenshawe have had a bad reputation but successful property investors will tell you not to judge a book by its cover.

Wythenshawe has undergone a massive shift in recent years. With increasing transport infrastructure in the area by way of the Metrolink as well as the £280m airport expansion scheme, the town is definitely on the way up.

Sean Callaghan, Managing Director at Callaghans Estate Agent, said: “As with many inner city areas, Wythenshawe has experienced high levels of unemployment, underachieving schools and a lack of high grade shopping facilities.

“The injection of funding into the area, increased job opportunity and more affordable housing is already having a positive impact. We have seen a marked turnaround in recent years with the refurbishment of the Civic Centre, increased employment at Manchester Airport and the Amazon Warehouse.

“In terms of property we know that long-term, secure positions at the airport will create a further demand for first time buyers and Investment buyers.”

Now you have the area, where is good to buy?

According to the experts, the staples of investment will always be transport links, schools and amenities. Roads running along the tram line therefore are proving particularly popular with buy-to-let investors, such as Simonsway in Woodhouse Park, or Hollyhedge Road in Benchill, both of which were singled out by local estate agents, Callaghans.

Price

A three bed semi will cost you between £110,000 and £160,000.

At current market prices you can expect a return – depending on what part of Wythenshawe you buy in – of anywhere from £600 to £1,000 p/m.

If your budget isn’t quite as flexible then you might be tempted by a more modest terraced house, which are available for around £90,000 to £115,000.

Pitfalls?

No investment is 100 per cent safe, so it’s not for the faint hearted. You can’t just ‘dip your toe’ into property, it’s called an investment for a reason.

Buying at auction, for example, can reap huge rewards but you also need to be prepared for expensive pitfalls.

“Once you’ve signed on the dotted line it’s yours, warts and all, so you need to make sure you’ve done all your due diligence and have the money to pay for it”, said Andrew Thompson, from Edward Mellor auctions.

Having the money to finance the investment for the long term is also vital as there may be times when the house is left empty and without a tenant. This will mean either waiting for a tenant to come in or taking a hit on the rent you charge.

Immediate rental yields

Droylsden/Denton

Why?

Droylsden and Denton are our top tips for an immediate profit.

Charlotte Puddy, from Abode Property Management, said: “They are really great. You can buy a three bed property there and you will rent it out straight away.

“People that live in these areas are generally those who have always lived there and have family roots there.”

That, combined with the expansion of the Metrolink network in 2010 through to Ashton-under-Lyne, has helped join towns like Droylsden and Denton up with the city centre, making them great commuter options.

Where?

You don’t have to be a property expert to know that WHERE you buy is probably more important than WHAT.

People want to be close to everything; shops, bars, coffee shops and transport links. If they are too far away from them it’s only going to affect what people are willing to pay.

Unsurprisingly then, you want to be right in the centre.

If you’re looking at Droylsden that means roads coming off Market Street and Manchester Road, where trams run regularly down to the Etihad campus.

For example, Tame Road in Denton has a wide selection for semi detached properties, close to the town centre and recreational pitches.

Laura Dawson, office manager at Sleigh and Son in Droylsden, said: “It’s true, rentals are booming here.

“A couple of reasons behind that are that house prices aren’t too high and with the tram it’s great for people getting into the city. Being able to commute is a big factor for people.”

Price

House prices have risen by over £4,000 in Droylsden and Denton in the past twelve months, so if you’re looking for a bargain you may need to move quickly.

If you’re working with a smaller budget then you may opt for a terrace, which will set you back an average of £107,862 in Droylsden, and a touch more, £111,450, in neighbouring Denton.

Ms Puddy said: “Denton has an excellent supply of two and three-bed terraces, often garden fronted. There are pockets of new build properties across Tameside and we expect this to increase as house building continues to rise, however the traditional style terraces form the bulk of the property stock in the area.”

However, according to experts the best money is in larger properties, which attract growing families who want to stay for several years.

If you’re looking for a longer term tenancy then with a higher yield then a three bed detached house might be a good option.

The average semi-detached home in Denton goes to market for around £157,480 while you can pick one up in Droylsden for just £132,003. But like anything prices can vary on the state of the property to its location as well.

Pitfalls

Again no investment is fool proof, so if you haven’t got the finances and the patience then you should consider if it is really for you.

Despite both demand for properties and a high rental yield (7 per cent approx) nothing is a certainty, so as with all types of investment, do your research.

Student rental

Fallowfield/Salford

Why?

As we’ve said on numerous occasions, Manchester is the best city in the world and no one knows that better than the students who flock here in their thousands every year and not just because we have the 55th best university in the world.

Manchester has a fantastic reputation, it’s every bit a modern city and is always at the forefront of everything from food and drink to art and music.

So, when you have over 70,000 students descending on a city each year they are going to need somewhere to live.

Also students tend to live in larger groups, so instead of having one tenant or a couple in a flat, you could have anywhere from three to 10 in a property.

This is a massive incentive for investors as it means that you can make more money from less property.

And because of the sheer volume of students, you will have a constant supply of tenants, leaving your property empty for a much shorter period of time.

Where?

Graham Davidson, managing director of Sequre Property Investment, said: “Those looking to invest in a property that will attract student tenants should stick to the city centre as this is where rental demand from students is highest. They want to be within walking distance of their campus and have easy access to shops, bars and sports facilities.”

Fallowfield, Rusholme and Withington are synonymous with student housing and attract the majority of the student population, year in, year out.

Fallowfield is home to different styles and sizes of property, such as larger, traditional Edwardian properties on Egerton Road to blocks of flats on Granville Road and elsewhere.

Students going to Salford University will however be looking at roads closer to campus, meaning streets off Frederick Road are popular.

Pitfalls?

Student rentals usually have fantastic financial returns but they do come with some drawbacks that any potential investor should look out for before jumping in, head first.

You need to be prepared for anything and everything to break on regular basis, including furnishings, doors and windows.

Charlotte Puddy said: “I believe the rental yields are really good, but it completely depends on what kind of person you are.

“For the right person you can make a lot of money, however students today are demanding a lot more from their properties; wifi, flat screen TVs, etc.

“Gone are the days when students would accept living in a pit.”

Therefore, there is increasing competition from luxury student living, especially in cities like Manchester. Vita Student and Lambert House offer free breakfast, wifi, Netflix and even bowling alleys in some cases.

This isn’t for everyone though, most students still prefer things in Fallowfield and Withington, a bit rough around the edges, which you can’t recreate in other parts of the city.

Off plan

City Centre/Salford

Why?

Our city’s skyline has changed dramatically over the past ten years, with a new apartment block or office tower popping up seemingly everyday.

There is a buzz around they city centre, which has seen the population mushroom to over 90,000. As a result demand for property in Manchester has never been greater.

Ged McPartlin, director at Ascend Properties, said: “Development is coming out of the ground thick and fast across Manchester in order to meet the demand for new homes. The city centre is certainly seeing a fantastic wave of new PRS schemes and development is rife so investors would do well to consider investing here if they want to buy off-plan.”

Also, off-plan can sometimes give investors the chance to get a property for cheaper than they would if they bought it after completion.

This is of course a gamble, but depending on the success of the site can save you thousands.

Michael Jones, from Residential Investment, said: “Off plan investments are attractive as early buyers can have the pick of the best units available and secure an apartment at the lowest price, as most developers increase the price as construction advances.”

Where?

We recommend the NOMA development close to Victoria train station. It’s an area which has undergone an incredible transformation, seeing around £800m pumped in to develop the area.

With the Co-op being based there and a host of transport links including trams and national rail lines, it’s perfect for commuters wanting to live in the city centre, but also the freedom to get out.

At the other side of the Irwell, Middlewood Locks is set to be built, with over 2,000 homes planned.

This is a case where being a bit further out of the city can actually work in its favour.

Charlotte Puddy said: “It’s a good little area around there. You can walk into town but you can also jump in your car and get out of the city. It’s got great transport links with the A57 running right past it.”

Price?

That’s a bit like asking how long is a piece of string – it really depends on what you’re willing, and able, to pay.

Prices vary from scheme to scheme, based on multiple factors such as the build cost and the location, so it’s hard to get an average.

You could purchase a two-bed flat in Halo Apartments, right in the heart of NOMA, for around £210,000.

If you were to invest in St John’s Quarter, on the site of Old Granada Studios, you could be looking to pay almost triple that.

Similarly, Angel Gardens is planned to be built there, with approximately 466 flats and will no doubt be a draw if completed.

Pitfalls?

Off-plan developments are fraught with risk.

It might seem like a safe bet – a new build with modern appliances and a city centre location.

But there can be problems such as delays and increases to the build cost. Perhaps most importantly – will people want to live there when it is complete?

You are putting a lot of money – and trust – into a developer to do a good job on the property, so it’s vital that you research their company and its history thoroughly.

Giles Beswick, Director of Select Property Group, said: “When buying purpose-built schemes, the credibility of the developer and the clarity of who’ll be managing the property are key factors to consider.

“A lot of providers charge a high initial fee to reserve a property. Because they’re not always the developer themselves and have third party costs and commissions to pay, they need the capital to front the project. This should be a red flag for investors.”

Also, we hate to break it to you but you will not be the first to think of the idea. Off-plan investment is not a secret, so expect competition.

That means you might have to wait some time to let out your brand new flat, even when it’s finished.

Charlotte Puddy said: “You could buy in a development where there are 50 flats and then when you try and let it out so does everyone else. If it’s in demand it’s great, but if it’s not and you can’t (let) then you will have to drop the price.”

Fixer upper

In the age of ‘Homes Under the Hammer’ and ‘Location, Location, Location’, everyone seems to fancy themselves as a property expert.

People like the idea of buying a property, doing it up and selling it for a massive profit, but sadly it doesn’t always work like that.

We don’t want to sound like a broken record but research is key, as well as having the finances to back it up.

Andy Thompson said: “When looking for a ‘fixer-upper’ the general location is less important in my opinion – it’s more about the value and potential value of a particular property.

“Done properly, there can be really lucrative rewards in renovating and selling on a property but it’s a fiercely competitive market and therefore it pays to keep an open mind with regards to your ‘target location’ and not necessarily pigeonhole yourself to just the areas that you ‘know’.”

How?

You can buy a great house but if no one wants to live in the area then it’s useless.

Similarly, if you buy a derelict property with all manner of things wrong with it, even if it’s in a great spot the cost to get it up to scratch might not even cover your outgoings.

It’s all about keeping those books balanced, which is often the most difficult thing.

Andy Thompson said: “For me, the profit is in the purchase; if you pay too much for the actual building, whatever improvements you go on to make, you’ll always be on the back foot with it. The flipside to this is, if you buy well, often you won’t need to get your hands overly dirty to make a decent profit.”

So, the advice from the experts is, if you’re thinking about taking on a challenging property, keep it as simple as possible.

Andy added: “If you’re new to the game it might be better to cut your teeth on a smaller project, somewhere like Edgeley, in Stockport, where there is a mass of terraced houses.

He added: “These are not only easier to physically renovate but they’re also easier to value, so you’re less likely to pay too much for something and struggle to sell it later on.”

Examples?

Jamil Shahid took to property development after retiring after having experience as a landlord in the past.

He has taken on several broken-down homes and renovated them to sell on.

Most recently he bought a four-bedroom detached house in Levenshulme for around £205,000 which has now gone one the market for £340,000.

He said: “I have always been interested in property and had a few apartments in town for years but since I stopped working I now have more time.”

But how do you decide WHERE you should invest?

According to Mr Shahid it’s best to stick to what you know.

He said: “I only look in south Manchester because I don’t know the north very well. I have lived here for years so I know it and I’m used to the area.

“I’m sure there are bargains to be had in the north but I haven’t been there yet.”

Prices?

Again they can vary greatly from auction room to auction room, depending on the interest.

You can therefore pay any price, from £30,000 to upwards of £200,000. The key thing is to always stick to your budget, because you will need the extra cash when it comes to renovation.

And don’t forget you will still have a mortgage and stamp duty to pay, with or without a tenant.

Pitfalls?

Perhaps more than any other kind of investment here, buying a property in bad condition poses the most risks.

Things can and will break, so you need to be prepared for the cost.

Charlotte Puddy said: “You need to make sure you don’t pay more than it’s worth.”

This is a sentiment shared by experienced buyer Mr Shahid.

He said: “The price can sometimes be too much, even in the auction room, but it can depend on how many people are interested.

“So you have to have the finances and you need experience.”

Buying the property is only half the battle, once you have it, that is when the real work starts; renovation.

This is the part that can often trip investors up. They have watched one too many episodes of Grand Designs and spend all of their budget in a week.

According to the experts, finances are key and you will always need something for a rainy day.

For example. Mr Shahid’s property in Levenshulme cost around £60,000 to renovate with another £15,000 in stamp duty.