With the move of the BBC to Salford, the city has been a focus of investment and growth for several years. The highly respected University is a popular destination for students and its close proximity to Manchester has meant the city is now a hive of development activity.
Renowned as one of the country’s “key growth areas” in the whole of the UK, Salford has significantly transformed over the past decade. Growing from a small industrial city to one of increased economic vitality, Salford has evolved into a modern global city in conjunction with its sister city Manchester.
Massive investment has been poured into Salford with over £650 million being devoted to residential, commercial, infrastructure, retail, education and public spaces. This has generated £1 billion for the national economy. This is an exciting time for the city which is flying the flag for the Northern Powerhouse project.
The peak of this transformation has been the £550 million development of the UK’s first media focused development, MediaCityUK; the largest of its kind in Europe. Home to media giants BBC and ITV, as well as Salford University’s Media campus and 50 other businesses, the area is a haven for all things media and digital. This year has seen announcement of further development at MediaCity with a plan to double its size over the next few years.
Why Invest in Student Property
Over the last few years, student properties in Salford have generated yields in excess of 13% and geared yield in excess of 35%. Our research shows that the area provides greater returns than almost any other city in the UK. This is also helped by the massive regeneration taking place in North West as a region, with the proposed High Speed 2 (HS2) high-speed railway between London Euston and the North West to be completed in the next 15-20 years.
A HMO (House in Multiple Occupation) property can provide an 8% minimum cash rental yield and a typical 13% total cash yield, including 5% capital appreciation. The average gross cash rental yields for the student property sector in Salford were 8.1% for the 2015.
HMOs or Student Pods?
If you are considering investing in student pod investments, you need to look at not only the opportunity, but also the risks too.
Some major disadvantages of student pods are their resale value and capital growth potential. The value of property will always fluctuate with the market and the pool of potential investors is much smaller than for other types of student accommodation, such as HMOs.
A normal buy-to- let will allow you to sell your property investment at any time on the open market and you can expect a reasonable capital appreciation. However, if you are selling a student pod you will encounter problems. For example, who decides the market value? As a piece of real estate per sqm it is very expensive (double the average market value), there is no established resale market. Is it an investment, or is it a piece of real estate?
There is also the issue of guaranteed returns of 7%. Guarantees are only as good as the firm that is promising it. Investors need to weigh up whether that think providers of student pods are robust enough to stand behind the guarantee. They also need to be aware that the 7% guarantee may not stand in five years’ time, when their investment could have devalued as new developments have been released.
Why Use the Mistoria Group?
Mistoria are local experts, based in Salford and this is our field of expertise. We have many examples of successful investors who have been with Mistoria for many years and continue to use our services to build their investment portfolio. We are also financially stable and our Group companies cover every aspect of the business, from identifying the correct properties and locations through to managing the property and finding the tenants.
Our investments work and we can show you how. Successful property investment is not about future promises, it’s about a proven track record of success and the Mistoria Group is proud to demonstrate ours.
If you would like to know more, then simply contact us using the form below and one of our team will be in touch.
Still Have Questions?
Then lets talk. Complete this form and one of our team will ring you to discuss this opportunity.
We don’t hard sell – it’s no way to start what we want to be a long term relationship – we will simply talk you through our investment products to see if they are the right fit for you.
We look forward to hearing from you.
Excellent returns from Salford and region
Stable investment in student property
Proven track record of success
Well established company
Growing investment in Salford