In the UK property market over the last 12 month Student accommodation has been the best-performing asset with average double-digit returns these have been driven by strong rental growth.
Over the last 10 years the student housing sector has grown to a market worth in the region of £103bn. This growth has been driven by a rise in the number of students enrolling on university courses, up from 100m in 2000 to over 150m last year. According to the property index student housing funds have returned close to 12% since the start of the year this compares with an average return of only 1.3% across the rest of the property market and an average 6% for other investments. Over the last year a number of large investment funds have bought into the sector as they believe that the sector is not greatly affected by the present economic downturn and lenders are also turning to student accommodation as one of a handful of property types which they view as low risk: vacancy rates run at about 5%, less than one-third of the figure elsewhere in the property sector. To invest or find out more about the student investment sector please follow the link - STUDENT INVESTMENT The Water Front Village at Buccament Bay Resort in St Vincent & The Grenadines.
Buccament Bay Resort is extremely proud to receive even more honours to add to the collection; this time, the luxury, all-inclusive resort in St Vincent & The Grenadines has been voted in the top ten best hotels in the world in THREE categories, courtesy of Travel Weekly. The polls, voted for by travel industry professionals, ranked Harlequin Hotels & Resort’s flagship Caribbean resort in the top 3 for Best New Hotel, as well as top ten places in Best Family Hotel and Best All-Inclusive Hotel. This comes after Buccament Bay Resort won two World Travel Awards for Caribbean’s Leading New Hotel and St Vincent & The Grenadines’ Leading Spa Resort. Such fantastic industry recognition for Buccament Bay Resort and Harlequin Hotels & Resorts is testament to the great work of the resort team, the strides that the resort has taken since opening. To book a holiday on Buccament Bay or to invest in one of the units please follow the link - LINK Buccament Bay Resort wins “Caribbean’s Leading New Hotel” and “St Vincent & The Grenadines’ Leading Spa Resort” 2012
The WTA awards programme, hailed as “the Oscars of the travel industry” by the global media, highlights and rewards those travel brands that have made the greatest contribution to the industry over the past year. In winning “Caribbean’s Leading New Hotel” for 2012, Buccament Bay Resort beat the likes of Hotel Riu Palace Bavaro (Dominican Republic) and The Hotel Chocolat (St Lucia), whilst the St Vincent & The Grenadines “Leading Spa Resort” honour was awarded over competitors like Palm Island Resort, Petit St Vincent Resort and Young Island Resort. About the World Travel Awards WTA was launched in 1993 to acknowledge and recognise excellence in the global travel and tourism industry. Now celebrating its 19th anniversary, it is regarded as the very highest achievement that a travel product could hope to receive. A packed delegation of VIPs, senior tourism figures and international media traveled from more than 30 nations to attend WTA’s Caribbean & The Americas Ceremony 2012, which was supported by Turks & Caicos Tourist Board and Scotiabank. CARIBBEAN’S LEADING NEW HOTEL 2012 • Winner Buccament Bay Resort Other Nominees: • Cofresi Palm Beach & Spa Resort Dominican Republic • Hotel Riu Palace Bavaro Dominican Republic • The Hotel Chocolat St Lucia • The Magdalena Grand Beach Resort Tobago ST VINCENT & THE GRENADINES’ LEADING SPA RESORT 2012 • Winner Buccament Bay Resort Other Nominees: • Canouan Resort Grenadines • Palm Island Resort • Petit St. Vincent Resort • The Cotton House • Young Island Resort To find out more, please follow the link - BUCCAMENT BAY Invest In Massive Yielding Property In The USA’s Largest Oilfield With a potential 56% Annual Rental Returns OR a 25% guaranteed yield for 4 years. This has to be the best investment opportunity of the 21st century so far. Now available fractional units of either 50% or 25%. Follow the link below to download a brochure on the Bakkan oil fields mini motel rooms or click on the link to be emailed further information - LINK
A lot of investors simply rely on the price given to them by the agent or developer. But developers can overcharge, they over-design buildings in a bid to win awards and they are forced to overcharge for the buildings simply to break even.
Some savvier investors may base their investments on a search on one of the many internet property portals to find the average prices for similar properties in the area. The more experienced might also use sites like Zoopla to see how properties have been amended, re-listed, re-valued since their original posting. However, these sites only give us the values that the vendors and the estate agents think that the property is worth. This isn’t reliable as the vendor clearly wants to obtain the maximum price, a strategy supported by the agent who normally works on a commission basis. There is only one way for investors to ascertain a property’s value which is truly safe and that is to find a properties residual value. The residual value is based on the amount of net rental income it can generate – anything above 6% looks like a good investment. For example, if a property brings in £6,000 rent per year after all costs have been taken in to account, that £6,000, based on a 6% net yield would give the property a value of £100,000. That £100,000 would be the Residual Value of the property and it should be the focus for every investor going in to a deal. But at the minute investors ignore the residual and rely purely on the capital growth of a property which is hopelessly optimistic considering the market place at the moment. Despite the residual value of a property being £100,000. The investor may pay £125,000 believing that the value of the property will increase and they can sell it for £150,000. But then if property prices start to fall slightly, he’s suddenly in negative equity and then the only price someone would be willing to pay for the property is the Residual Value and the investor will have lost £25,000. The key to real successful and safe investment is how you derive the 6% net yield which you have used to establish the property’s residual value. By working out the 6% net yield using below market value rent it means that the investor will not have to contend with tenants struggling to pay rent. As rent continues to rise, there will always be a demand for properties charging below market value rent. First time buyers will be queuing round the block to save a £100 per month, yet the investor is still left with a 6% net yield because they have bought the property at residual value. It also means that there will always be savvy investors looking to purchase a property at the residual value because they are not only purchasing a strong income stream, but they are purchasing a property at a price that will not be affected by market fluctuations or crashes. If the property market was to fall again then the investors who have invested in residual value will be protected from the fall in house prices and when houses start to get repossessed and more people are forced in to the rental market, then their yields will go up even though they are still charging below market rent. In the end, everybody will be relying on residual property valuations. It’s inevitably in the future but there’s no reason why investors can’t take advantage of them now. Invest in Student accommodation with unit prices on average 30% below comparable units and a net rental guarantee of 8% for 2 years - LINK A new concept in affordable housing
– £44,950 purchase price – 30.84% below market value -- £20,000 instant equity -- 8% net yields -- SPECIAL OFFER - BUY 5 for the Price of 4.5 - Saving £22,475 Beacon Apartments encompasses an exciting new living concept of one-bedroom UrbanPads for key workers and young professionals and are ideal for first time buyers and investors alike. Located near the centre of Gateshead in the North East of England, Beacon Apartments will be the ideal location for young professionals and those working in the nearby towns and cities such as Newcastle and Durham. The property is situated in close proximity to main motorways and transport links and provides quick and easy access to business centres. Beacon Apartments sits near to the A167 Gateshead Highway, which provides surrounding areas and also the A1 via A184 and the A19 for those commuting to places of work. A converted 1970s building with fully renovated interiors and exteriors, Beacon Apartments is a modern property and provides an attractive option for people looking for central living spaces. The new concept development will be converted into 112 Urban Pads. They are 30m2, one bedroom suited for urban living preferred by young professionals. Each pad will consist of a living and kitchen area, a bedroom and a bathroom. Highlights of Beacon Apartments - Close to areas of interest such as Newcastle and Durham. - Urban Pads concept providing 112 urban pads with rents from £395 pcm. - High Net Yields. Email for further information - EMAIL According to the latest Royal Institution of Chartered Surveyors/Ci Portuguese Housing Market Survey the Algarve property market remains relatively stable despite the wider Portugal property market downturn.
The Portuguese property index shows that activity and confidence in the Algarve property market is relatively steady in spite of a general downturn nationwide. The national activity and national confidence indices for the whole of Portugal dropped by eight and two points respectively to -33 and -51, while the national price balance fell from -55 to -59. Josh Miller, RICS senior economist, said: “In Portugal, it is the demand side of the equation that is weighing down on prices, with the double digit unemployment rate feeding through to weakness in new buyer enquiries.” Weak market conditions are creating some fabulous bargain opportunities for those people actively looking to buy a home in Portugal. But values in the Algarve are holding firm, for now. If you are interested in purchasing a property on the Algarve please get in contact and tell us what you are looking for we will then try source it for you, there are some fantastic deals at the moment. Investment Property Worldwide Portugal guide Pages |
AuthorInvestment Property Worldwide will try bring to you a diverse range of property, investment news. Archives
October 2014
Categories
All
|