UK Property Investment Packages
Our investment packages are put together based on three very important criteria, namely:
- Are we investing in the correct country?
- Are we investing in the correct location within that country?
- Are we securing our investment stock at below market value?
1. Are we investing in the correct country?
The United Kingdom is a triple “A” rated economy in which property prices have doubled every 7 years for the past 100 years. The following table that was taken from the UK Land Register clearly demonstrates the tremendous capital growth that residential property has achieved over the last 10 years.
| 2007 | £210,001 |
| 2006 | £190,529 |
| 2005 | £181,258 |
| 2004 | £165,562 |
| 2003 | £155,284 |
| 2002 | £120,876 |
| 2001 | £108,465 |
| 2000 | £99,449 |
| 1999 | £83,885 |
| 1998 | £80,108 |
| Source: HMRL UK Land Register |
In addition to this, there has been a steady but rapid decline in new housing completions and this has resulted in the lowest number of new homes being completed for 77 years. The UK in 2001 built just 162,000 homes whilst household growth over the same period was 220,000. (Source: House Building Federation)
Furthermore, 7.6 percent of the nation’s housing stock was classified as unfit in 1996. 15,000 houses were demolished in 2001 widening further the gap between the number of homes available and those in need of housing. In short the average annual deficit of houses needed in the UK is 73,000. This situation has been compounding itself and will form a definite basis for future capital growth across the entire country.
2. Are we investing in the correct location within that country?
Portfolio Property Investments (PPI) has in conjunction with our UK office conducted economic research aimed at identifying up and coming areas that are set to go up in value at rates that exceed the national averages. This economic research is released in what we refer to as our Location Reports.
Location Reports identify our reasoning for investing in certain areas. These reports are normally about 50 to 60 pages in length and primarily cover changes in infrastructure developments such as national ports, rail & road as well as airport expansions. We also cover major funding initiatives such as structural and objective funding from both the EU as well as from central government.
We also take a long and hard look at the local rental markets to determine both current and future rental yields. This involves examining the areas major employers as well as demand for rental accommodation.
3. Are we securing our investment stock at below market value?
Once we have identified and documented the areas for investment, we then set about negotiating with local developers. Due to our combined buying power we are normally able to secure units at between 5 & 10% discounts off the current market values. (This is only possible because we purchase 10 to 20 units at a time.)
If you are interested in finding out more information about our UK Property Investment Packages, then please contact us and one of our experienced property consultants will be happy to discuss your offshore property investment needs.
If you require either full or part management of your UK property, we can put you in touch with, our UK property management company. Furthermore if you would like to leverage your investment with a mortgage from one of the offshore banks we will be pleased to put you in direct contact with a mortgage originator from Savills Private Finance.
This article was compiled by:
Bradley Hancock – Founding member of PPI
Bradley can be contacted on the following:
Email: [email protected]
Tel: ++27 72 0196192
