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It has been a busy month here at FJP Investment. We have just opened up our second UK office in North London, and we are looking forward to welcoming clients through our doors.

The month has also seen a major uptake in media coverage for FJP Investment that we are delighted to share with you.

The current state of the UK property market

Several publications took interest in CEO Jamie Johnson’s view on the current state of the UK property market.

Major publications that shared this story include Private Banker International, Property Reporter, Property Secrets and London Loves Property.

Collectively these publications receive an estimated 300,000 monthly readers, so we are delighted to have shared our thoughts to these audiences.

The Brexit effect

Accountancy Age and Public Sector Building News delved further into this and asked for views on how the property market has reacted to Brexit.

These pieces take a critical look across major cities in the UK and gives an unbiased view on the outlook for investment across the UK.

Investment in the UK capital

We also shared a piece with Investment Network about how property investment in the UK capital has been affected by Brexit.

With more in the pipeline over the coming months, be sure to keep up to date by registering your interest and joining our email listing below!

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The post In the Media | April 2019 appeared first on FJP Investment.

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The High Street Group have recently released an update on the status of all of their current projects. To summarise, the updates are as follows:

  • High Street Residential have acquired an additional site adjacent to our existing development Kent Street Residence in Birmingham. ‘Kent Street Baths’ will take HSR’s Birmingham portfolio to an overall GDV of £520 million.
  • All Saints Construction continues to grow, with new development sites being purchased. The most recent addition is Hunton in North Yorkshire – 14 detached homes in an idyllic countryside location. The children of nearby Hunton & Arrathorne Community Primary School held a competition to choose the new development name and came up with Arrathorne View.
  • High Street Hospitality has refurbished Sea Hotel in South Shields, along with the on-site restaurant and Loca Bar & Kitchen. Within weeks of the renovations being complete the venues began to see a healthy footfall and a number of repeat guests. A brand new sports bar, Bar 52 will open within the Sea Hotel in April. HSH’s next project will be the Parkmore Hotel in Yarm; a full refurb of bedrooms, restaurants and leisure facilities.

See below for the full update on each of the projects.

Kent Street Baths, Plot 1, Birmingham
We are pleased to announce the purchase of Kent Street Baths, Plot 1 for £20m. Kent Street Baths, Plot 1 is a large residential development in the centre of Birmingham, within the regeneration area of the future Smithfield Masterplan. This development will comprise of four blocks around a private courtyard, within a central circular hub and will consist of apartments and mixed use developments. This will see the construction of flexible retail, restaurant, leisure or office space and see the provisions for car and cycle parking. The Gross Development Value of this development is £114 million and will be sold to institutional investors.

Previously the site of swimming baths, the area has been under-utilised in the past 30 years. The overall development is located within the Southern Gateway £1 billion regeneration zone, which the government has brought forward as part of the high speed rail network ‘HS2’ masterplan. Through this masterplan, Birmingham will create a world class station that will become a gateway to both the UK and European high-speed rail network.

Kent Street Baths will join our ever increasing portfolio in Birmingham which includes projects such as Westminster Works, Holloway Head and Charter 1. As well as these projects, you may also be aware of our purchase of Kent Street Residence last year (Formerly Kent Street Baths, Plot 2) which was part of the same site. This will see the overall GDV of developments in Birmingham at approximately £520 million.

Hadrian’s Tower, Newcastle upon Tyne
This project is currently in week number 46 and construction is on programme. Works to the central core reinforced concrete structure are complete to Level 20 with the columns, walls and floor slabs to Level 12. Masonry works to the North and South elevations continue.

Brett Wharf, Gateshead
This development, comprising of 220 apartments over two buildings with commercial and communal space, is now in pre-planning. We have submitted a pre-application and have commenced discussions with Gateshead Council and Historic England. Our site sits directly below the Grade 1 High Level Bridge (as pictured) and, as such, has a number of strict regulations which must be adhered to. We expect planning to be achieved in the coming months.

Middlewood Plaza, Salford
This project consists of stylish apartments, townhouses and duplexes and is located in the popular Salford area. Middlewood Plaza features split-height blocks of six and nine storeys, with a total of 127 homes across the site, in the largest of Manchester’s three main regeneration corridors. Renowned contractor United Living began demolition in January 2019 and construction has now started on site, with pile probing taking place in preparation for a piling mat.

Silbury Boulevard, Milton Keynes
Construction on our 139 private rental unit project at Silbury Boulevard in Milton Keynes is progressing well, with rapid transformation both internally and externally. Externally, windows have surpassed the half point of installation, with first and second floors remaining.

The rainscreen cladding system begins shortly with the insulation and bracketry works to be completed first. Internally, apartment and internal partitions are ongoing throughout all six floors, swiftly followed by mechanical and electrical first fit out.

Cheshire Junction, Warrington
The development of our £50 million apartment block and public multi-storey car park in Warrington town centre has started. Planning chiefs approved the scheme to build the eight-storey block, with 362 homes, and a 796-space car park on the site, on Winwick Street and John Street.

The project is on track to officially open in early 2020. Pottery Lane, Newcastle upon Tyne. We have recently acquired a third PRS scheme in Tyneside. Pottery Lane will consist of 220 apartments located between the River Tyne and Utilita Arena, a prime location for regeneration in the city. We are currently in discussion with Newcastle City Council’s planning committee.

Moncrieff View, Lenzie
We have concluded missives on a subject to planning basis with East Dunbartonshire Council to purchase the former Lenzie primary school site. It consists of 11 apartments in the old school building and 9 apartments in a new build extension.

We will have more information in the coming months. Roseate View, Amble. Sales have launched at our new build site Roseate View Amble. The
site consists of 13 detached townhouses and bungalows overlooking Northumberland coastline. Within the first few days of launching, we took
two reservations on site. A show home is currently in development and will be open in Summer

Arrathorne View, Hunton
All Saints Living’s most recent acquisition is Arrathorne View in North Yorkshire. The site consists of 14 houses located in a idyllic country setting. The children of the local primary school held a competition to choose the development name and Arrathorne View came out as the firm favourite.
We’ll have more information on this project as the site progresses.

Sea Hotel 52, South Shields
We have completed phase 2 of refurbishment at The Sea Hotel which included reception areas, restaurant and functions areas. Phase 3 is now underway to update 37 hotel bedrooms to a high quality boutique standard.

Loca Bar & Kitchen is now fully operational and taking regular bookings from repeat diners. El Coddo fish and chip shop has flourished within its first few months of opening and sees a regular footfall of customers. Our sports bar, Bar 52 is due to open its doors Spring 2019.

Parkmore Hotel, Yarm, Stockton-on-Tees

Refurbishment of the Parkmore Hotel has commenced with plans to make this the leading wedding and leisure destination in the North East.
This will include a brand new fine dining restaurant, The Purple Peacock, which will provide delicious brasserie style cuisine. Work on the renovation of the hotel bedrooms will begin in the coming months with the leisure club being renovated shortly after.

The Walled Gardens, Gosforth
The sales of the homes in the North Walled Gardens have now launched and Bradley Hall Estate Agents have so far taken two reservations of these prestigious properties. The show home is currently in development and will be open in time for Summer.

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Our guide to everything you need to know about investing in UK property in 2019.

In the next instalment of our ultimate guide series, we delve into the UK property market in 2019.

The UK property market was slow in 2018. With the effect of Brexit having a negative effect on the market, many will shy away from investing altogether in UK assets amid fear that investments will continue to fall in value.

Data from the Royal Institute of Charted Surveyors (RICS) draws attention to this, with less property for sale, deals taking a record amount of time to complete, and property staying on the market for substantially longer than in previous years.

Mixed growth across the UK

So, what is the outlook for 2019? Unfortunately, there looks to be a similar trend going forward, particularly in the first half of the year. The market will inevitably continue – unfortunate scenarios in debt and death results in property naturally entering the market. With a continued rise in students going to university and increasing numbers of people moving for employment, there will always be some demand for property. However, buyers will find they have less options in the market.

With tighter lending criteria on mortgages, the purchase of property continues to be an uphill struggle for most. More homeowners are now looking at renovating and extending their existing homes than looking elsewhere. For this reason, the property market is likely to continue ‘treading water’.

It wasn’t all bad news however. We saw economic growth in cities such as Manchester and Liverpool, with a general trend emerging of high growth in the North. London house prices however saw a fall in value.

Mr Burrell, of Capital Economics, says that “prices in London could drop by 5% next year, but rise elsewhere. At a hyper-local level, the performance of a school or the prevalence of crime can affect prices.”

Brexit is cited to be a major reason for this fall in value. RICS were unanimous in blaming Brexit and say that “uncertainty created by the Brexit process is causing buyers and sellers to sit tight in increasing numbers.”

House prices will fall by as much as 30% from a pre-Brexit level if we are to see a “disorderly Brexit”, and house prices could fall by as much as 14% this year alone, according to forecasts by the bank of England. The effects of the dreaded B-word are abundantly clear. It is highly unlikely that we will see a recovery post Brexit either, with those holding property assets abroad also facing uncertainty.

Who is buying property?

Young people that are aiming to get on the property ladder will also have a hard time of this. As mentioned previously, there are stricter lending criteria when it comes to taking out a mortgage, and when combined with higher turnover and a lack of security in employment, saving for a house is ultimately out of reach for most, especially those in big cities with higher property prices.

This speaks volumes when first time buyers were actually the most active on the market in 2018. 1 in 10 buyers received support from Governments help to buy schemes, increasing this demographics likelihood to buy. However, Property Reporter’s recent forecast found that over 50% of those between the ages of 18 – 40 are due to be renting privately owned property by 2025, with one third of those predicted to never buy a home. Could this be an opportunity for property buyers to target this increasing demographic?

The rise of rental income

It is predicted that capital growth will account for just 30% of total returns across UK property to 2023. This forecast is a whole 10% lower than at the start of 2018 and is also noticeably down on the average 55% share we have seen over the past 10 years. Income returns are also predicted to rise to 70% of total returns. This highlights the importance on rental returns over the appreciating value of a property.

You have to consider the unpredictability of the current political situation. The UK housing market is particularly difficult to anticipate, nobody is able to accurately predict how the coming year will unfold. Something is for certain though – Sterling has had an effect on property buying.

The effect of Sterling

At the start of 2018, Sterling was holding relatively strong against the US dollar. Although not at the same level we have seen over the past decade, a peak of £1=US$1.434 was enough to be favourable for those holding Sterling.

Unfortunately, this was effectively reversed from April 2018 to August 2018. The value of Sterling fell rapidly, with £1=US$1.27. Fast-forward to December 2018, following delays from the EU withdrawal from Europe, Sterling fell even further to a low of £1=US$1.252. As of today, the Sterling is seeing something of a mini-resurgence after the Brexit deal was recently voted down, standing at £1=US$1.32.

For those holding foreign currencies, such as euros or dollars, UK investments have naturally been more attractive. Many international buyers will have seen an opportunity to buy up property assets at a reduced price, in the hopes that these assets regain value once the dust has settled. Those holding US dollars will have seen the greatest benefit, particularly in dollar international investment trusts.

Should I invest?

Those that are holding Sterling will effectively have nothing to lose if they are investing in UK property. It is incredibly difficult to forecast the relative value of Sterling going forward.

We appreciate that the situation may become clear in a few months times, as the result of Brexit becomes apparent. But, there really is no guarantee the economy will be better off afterwards – in all likelihood it will probably be worse.

Attempting to time the market and the political situation is a major pitfall that many investors fall into. Even if you anticipate the result, the market often reacts differently. Stick with what you can control and monitor what you cannot. A long-term strategy for investing will likely see you make a return, even if this is passive.

Where should you invest?

As discussed, it is difficult to forecast how the coming year will be for the property market as a whole, but we can say with reasonable confidence that a number of areas in the UK will see economic growth.

When identifying where to invest in UK property, we use 2018 as a guideline. London is the area that was most hit by the uncertainty in the market – more specifically, those holding high value properties. With house prices in the capital being the highest in the country, these properties had the most to lose. You could argue that as the political situation settles, London could have the most to gain – something to consider.

When looking at the UK as a whole, particularly those areas in the north, average house prices actually rose. Overseas property buyers saw value in the fall of Sterling, and most targeted areas in the North due to the ongoing effects of what we call ‘Northshoring’.

Northshoring is the result of companies moving to the North to cut operational costs and improve business. The result of this is increased inward migration, and talent coming in from overseas as a result of increased job opportunities. With a lower cost of living than in the capital, the economy in cities such as Manchester are taking advantage of this increase in demand and are growing accordingly. With the aid of data collected by Savills, below are some of the areas that we forecast to receive high growth.

Northampton

Northampton is seeing one of the highest levels of growth across the UK. In 2018, we saw house prices increase by a figure of 5.3%, this being noticeably higher than the national average. Houses sold on average in 33 days, suggesting continued high demand to live in the area.

Leicester

Being just under an hour’s drive away from Northampton, Leicester has reported the best year-on-year growth of all the major UK cities, and is lauded as being the best city to invest in 2018 by Hometrack’s. Property prices have increased by over 250% since the turn of the century.

With a prime location, being just an hour away from both London and Birmingham, it has fantastic links to some major cities. With future investment of up to £3bn, Leicester really appeals as a fantastic investment location.

Colchester

The small Essex town of Colchester has been on the receiving end of some surprisingly high growth in recent times. The town has great transport links, schools and leisure facilities that is boosting the price of property in the area.

Findings by housesimple.com highlight that house prices over the last three years have grown on average £55,000. In terms of capital growth, rental yield and rental price increase, Colchester is one of the most attractive places to invest in 2019.

Leytonstone

Admittedly, we advised earlier against investing in London property. However, it is difficult to ignore the UK capital, and there are areas in London that can make you a return on your investment. The North-East is the place you should be looking at.

Leytonstone is seen as London’s latest up and coming area and is proclaimed by a third of estate agents based in the capital as the best area to invest in London. With access to the central line, and future regeneration due in the coming years, more buyers are eyeing up Leytonstone and the surrounding area.

With lower prices than in the capital, combined with a rise in average house prices of 83% over the past five years according to property experts Savills, there is hope for London property still.

What property type?

It is easy to get into the mindset that the only property investments available to you are residential. Thinking more broadly, there are many opportunities to turn a profit when focusing on alternative property assets. To do this, we need to focus on the importance of supply and demand in the current market.

Urban logistics has, for a second year running, had the highest forecast returns in the property sector. Annual returns are predicted to be as high as 10% until 2024. The sector has attracted significant investment off the back of major rental growth over the past few years, spiking growth in the sector.

With a forecasted undersupply of Grade-A office space in London in the near future, there is expected to be high growth in this sector. With a re-pricing emerging in the retail sector, opportunities are likely to surface over the next 12 months that are worth keeping an eye on.

Demand in the build-to-rent sector will continue to see increased growth over the coming year. Largely due to consistent returns and familiarity in the market, the sector is an attractive one. Delivering competitive returns by operating at a larger scale and with the overwhelming demand for private rentals, the sector is a great investment opportunity.

To summarise

On the face of it, the UK property market would appear to be best avoided, due to political and economic uncertainty surrounding the country. However, by delving deeper into the market, there are opportunities to be had.

Seek value in the market. Identify an investment that is receiving growth and is also in a high-demand area (think the North). Consider also diversifying your property investments, putting all of your metaphorical eggs into one basket is ill-advised. Consider investing in a variety of property types, if this is within your means to do so, as this will spread the risk of losing money on a single investment.

The property market, as stated, will be difficult to forecast for the coming year. Focus on your long-term strategy, and with the advice above, we are confident you will make a return.

Download: UK Property Investment in 2019 | Ultimate Guide

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It has been a busy year for the High Street Group, with major milestones including construction at Hadrian’s Tower beginning to take shape, this being the tallest building in Newcastle, as well as over £1 billion worth of developments in the pipeline.

High Street Hospitality has further expanded with the recent acquisition of the Sea Hotel in South Shields and the Parkmore Hotel in Stockton-on-Tees. All Saints Construction continue to add to their ever increasing portfolio which includes at least four more projects coming in 2019.

HIGH STREET RESIDENTIAL Hadrian’s Tower, Newcastle upon Tyne

Tolent Construction is continuing to progress well on Hadrian’s Tower. Level 4 of the structure has now been cast, level 5 is beginning to take shape and the stair and lift shafts of the building are now up to level 9. Sales are progressing well, with 57 out of the 162 apartments sold to date.

Kent Street Residence, Birmingham

Sales have recently been launched through IP Global on our Birmingham City Centre site. IP Global are a recognised and well received property agent selling internationally, and have thus far achieved 50% off-plan sales.

Silbury Boulevard, Milton Keynes

With a massive 15,000 metres of steel, weighing over 750 tonnes, High Street Residential’s £30 million development project in Milton Keynes is taking shape at a rapid pace.

Midlands Director for United Living, Richard Baker, said: “This is a milestone development for United Living as it is the first project we’ve undertaken for the private rental sector. The team has made fantastic progress and we’re pleased to see these much-needed new homes are taking shape for the benefit of the local community.”

Helen Gordon, CEO of Grainger plc, said: “We are pleased with the progress of our first development in Milton Keynes and look forward to bringing great quality homes combined with our expertise and commitment to great service to the city.”

Brett Wharf, Gateshead

Having recently taking ownership of the Brett Oils depot located in Gateshead Quayside, High Street Residential plans to build approximately 250 high quality apartments within the private rented sector.Discussions with the local planning authority are underway, and a formal application is soon expected to be submitted.

Group chairman Gary Forrest said: “The Brett Wharf scheme will add to our contribution to the regeneration of the Newcastle Gateshead Urban Core. The former oil depot site is perhaps the last prime development site in the heart of the Newcastle Gateshead Quayside with direct river frontage.”

Middlewood Plaza, Salford

Middlewood Plaza has just achieved planning permission and construction is scheduled to start in January of 2019. The project is located in a highly desirable location in Salford, Manchester and is going to deliver 127 houses, in an area which is currently part of the main regeneration of Manchester.

The project will consist of six and nine storey blocks and will include bicycle access, enabling better connectivity with the city centre.

Cheshire Junction, Warrington

Cording Real Estate Group have backed the project in Cheshire Junction, Warrington after investing £40 million into the project, with construction now due to begin this month.

Director of residential acquisitions at Cording, Charlie Miller, said: “The site’s location, opposite the train station and within walking distance to Warrington’s town centre, is very attractive for future residents and commuters to Liverpool or Manchester.”

HIGH STREET HOSPITALITY Sea Hotel 52, South Shields

High Street Hospitality have recently taken over The Sea Hotel to bolster the companies portfolio in the hospitality sector. the hotel was purchased in a £1m deal, with further funding of £750,000 to be used to update the property to appeal to modern consumers.

Managing director, Phill Brumwell, said: “We are delighted to add such a well known, iconic hotel to our fast growing chain. We will improve the facilities to a very high standard, creating a boutique hotel with an array of food and beverage outlets”.

Rustica Trattoria & Inn (The Three Horse Shoes), Washington

In addition to Sea Hotel 52, the purchase of The Three Horse Shoes in Washington has also been purchased by High Street Hospitality. There are plans to construct a third Hotel 52 brand, with the hotel boasting 58 bedrooms. The purchase includes the Tavistock Italia restaurant, which the company plans to renovate.

Pending planning approval, construction aims to go ahead early next year, creating work for local contractors and within the hotel operation. Using a modular construction technique, the overall timescale for the project should be shorter than a standard build.

The Parkmore Hotel, Yarm, Stockton-on-Tees

The Parkmore Hotel has also been purchased by High Street Hospitality, with plans to invest £1 million to renovate and refurbish the hotel to facilitate for wedding and leisure purposes in the area. The renovation will improve the spa and function facilities, and will enhance the 55 bedrooms, targeting the boutique sector. Work is due to start on this development in early 2019.

Loca Bar & Kitchen, Whitley Bay

Nominated in the Leisure & Tourism category at the North Tyneside Business Awards in November, Loca Bar and Kitchen have a fantastic reputation in the area. With plans for opening a second chain imminently, and a third planned for early 2019, this brand encompassed by High Street Hospitality is soaring.

ALL SAINTS CONSTRUCTION Student 52, Newcastle upon Tyne

With an ever increasing demand for student accommodation in the Newcastle area, this project will be converting Northumbria University’s former offices into 46 student apartments. Located in Newcastle city centre, the location for the development is hugely appealing to students. The project is expected to complete in March 2019 by All Saints Construction.

Amble, Northumberland

Work on the Roseate View project is under way, which will be delivering 13 three and four bedroom properties consisting of town houses and bungalows. Development is catered towards families and the older generation respectively, and will be carried out by award winning developer All Saints Living, delivering the £4 million project in Amble, Northumberland.

Managing Director of All Saints Construction, Kirk Thompson, said: “We are delighted to be able to showcase how our new Amble development will look. The townhouses will be ideal family homes with bi-folding doors opening to glass fronted balconies, enjoying sea views.”

Larbert House, Falkirk

Another development recently launched by All Saints Living are the properties that extend from Larbert House. All Saints have appointed Clyde Property, a leading estate agents in the area, to manage the sales of the units.

Morar House, Helensburgh

In addition to Larbert House, Clyde Property have been appointed by All Saints Living to manage the sales of the mansion house and extensions of Morar House in Helensburgh. With demand high for the plots, with two already reserved, the property looks set to sell out, and with good reason. The property is idyllic and boasts beautiful surroundings around the building and extension.

The Walled Gardens, Gosforth, Newcastle upon Tyne

Launching in January, the residential development of The Walled Gardens in Gosforth, Newcastle upon Tyne, has been progressing very well, with all units within the Southern Garden now sold.

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It is with great pleasure that we are able to announce the opening of our new office in Bollington, Cheshire.

2018 has been a phenomenal year in which we have grown our UK client book several fold, and this naturally means we need to be well positioned in order to meet with our investors throughout the UK. We have identified Cheshire as a great hub for our business.

Bollington, Cheshire

The new office is located at Adelphi Mill, Grimshaw Lane, Bollington, Cheshire, SK10 5JB.

You are welcome to pop in for a visit, simply get in touch to schedule a meeting. For our international investors, we are located 25 minutes from the busy Manchester Airport if you wish to visit. Where possible, we do aim to meet our overseas clients on one of our various international trips.

The office is located by the idyllic waterside setting of the Macclesfield canal that runs alongside the office.

The Adelphi Mill, originally built in 1856 by a local cotton spinner by the name of Martin Swindells, is a Grade II listed building. During the Second World War, the mill contributed to the war effort by contributing to the production of parachutes. No longer a cotton mill, the building recently underwent a multi-million pound refurbishment and now functions as bespoke, modern offices.

The building is spectacular, and serves as a fantastic environment for our business.

The canal running alongside the mill is one of the most well used and indeed picturesque canals in the United Kingdom. When coming to the office, we will be sure to take you for a short walk alongside the mill. The location also benefits in that it sits right on the very edge of the Peak District.

FJP Investment is delighted with the location and the space in which we are comfortably able to thrive and deliver presentations for our investors. The opening of the new office also facilitates growth of our product range, since the vast majority of interest amongst developers is currently in the North of the UK.

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Our guide to everything you need to know about investing in hotels.

Continuing our guide into property investments, we now turn our attention to a particularly attractive market – hotel investments.

Investing in hotels has never been so appealing. We are seeing the highest growth in hotel room rates since 2011, travellers are at an all-time high, and we are seeing massive demand from all forms of investors in the hotel property market as a whole, according to Statista.

A hotel investment differs from a standard property investment. We have prepared a simplified explanation for how this form of investment usually operates.

Why invest

There are many benefits to investing in hotels, the first of which being the accessibility of the investment.

With the ability to easily invest in just a single room within a hotel, the accessibility of hotel investments is significant. When compared to investing in other HMOs (houses of multiple occupancy), the capital required to enter the investment, like student accommodation, is far more achievable for many investors.

Hotel investments are largely considered low risk, too. Some of the largest hotel providers are often seeking investment for further developments. With near-perfect track records, you are almost guaranteed a return.

Most hotel investments offer a return of 125-150% on the acquisition price. As an investor, the contract will often stipulate a buy-back option for the developer at around this percentage. As an investor, you will be looking for a contract that has an optional buy-back, meaning that if the investment is providing you with good returns, you can hold this for a long-term profitable yield.

The investment is also entirely hands-off. Your investment in a hotel room is as simple as making the investment, sitting back, and collecting the income. Although this sounds too good to be true, it often is this easy.

Your investment becomes part of the hotels stock, and this is managed on behalf of the hotel. Depending on the investment type, the hotel either takes a percentage of the income from your hotel room(s), or you take a percentage of the hotel’s overall income.

Given you have researched a safe hotel investment, and you have used a reputable investment broker, there is little reason you will not get a return on your investment. For investment opportunities, we recommend checking out some of our current investment opportunities.

What hotel type

In 2016, we highlighted that it was safer to invest in luxury hotels. Where this does continue to be the case, lifestyle & boutique hotels go a step further and look set to be the future.

You may be asking what a lifestyle hotel actually is, and this question is shared by many. James Sabatier, CEO of Two Roads Hospitality, says that “Lifestyle, to me, is about experiences. It ́s about feeling a sense of place. It ́s what travellers want more and more…”

Although the definition itself appears to be losing some meaning, with many new hotels claiming to be ́lifestyle ́, the concept is essentially offering beautiful, uniquely designed hotels that also provide an intimate and personal service.

What sets a lifestyle hotel apart from the conventional luxury hotel is the appeal these hotels have to the younger generation. According to STR, millennials spend marginally less annually than older travellers on hotel stays, but they are far more likely to spend money on a lifestyle hotel than a luxury hotel.

Internationally, STR also report the lifestyle sector has an average room rate of $229, with occupancy close to 76% across the board. This room rate is significantly higher than the average of $131 across the hotel sector, and also boasts a 10% greater occupancy rate. Clearly then, lifestyle hotels are where the market is currently at, and something you should target when making a hotel investment.

Demand

The demand for hotel rooms are on the rise. According to Statista, we are currently seeing a 3.7% growth on average hotel rates in 2018, this being due to a rise in the economy and increased demand by travellers.

International tourists in the UK are on the rise, up 7% from 2017, and this is set to continue according to UNWTO World Tourism Barometer. The reasons for this being the upsurge in the silver economy, the continued appeal of travel to younger people, and the rise in Chinese tourists as the country continues to grow in wealth. These trends look set to continue, with the reasons for this rise looking unlikely to be temporary factors.

PwC reinforces this high level of demand, with forecasts by the end of 2018 calculated as a 2.3% rise in RevPAR from 2017. With 2.4% supply growth predicted also, investors are aware of this continued demand for hotel stays.

The rise of Airbnb

Naturally, you may be cautious of hotel investments with the rise of Airbnb. A recent report by STR highlights that in areas where the average review scores on Airbnb were above average, hotels charged a marginally lower rate, presumably to supplement these reviews and attract more travellers. This was also applicable to Airbnb rentals that posted below average prices for the area.

The results did show that Airbnb has had almost no impact on RevPAR (revenue per available room) in the hotel market though, with Airbnb accounting for just over a 1% decrease in RevPAR. This supports the leading argument that Airbnb is offering more of a supplementary service to the hotel industry. Airbnb in itself is proven to be very unlikely to have a significantly negative impact on a hotel room investment.

Where to invest Investors eyeing London

A recent study by Cushman & Wakefield reveals that London is now the top city for hotel property investment worldwide. This is thanks to several large deals, doubling the transaction volume from the previous year. This highlights London as a strong investment market, and also the fall in American cities receiving lower investment than the previous year.

Head of Investment Strategy at Cushman & Wakefield, David Hutchings, says that “London has battled through political headwinds to charm both hotel investors and consumers. Its rich culture, history and leisure scene, alongside its business operations, is proving to be a solid bedrock for its hospitality sector which continues to go from strength to strength.”

The result of this may come as a surprise to some. London made the leap from seventh the previous year, narrowly edging out New York to top spot.

Investment has fallen in the US by 21% when compared to the previous year. This is cited to be due to new legislation enforced in mainland China and Hong Kong, resulting in a cooling of capital flow. This comes after several years of high investment in the US.

Head of Hospitality at Cushman & Wakefield, Jon Hubbard, says that “We are seeing an increasing diversity amongst the type of investors coming to play, including institutional investors, whose presence in the market is reducing the risk profile and driving a surge in liquidity”.

The result of this means that we are seeing an uptake in major operators considering leases for strategic situations, and the rising interest of institutional buyers to invest with potential for high returns.

Broaden your search

From an investment perspective, it is clear that there is demand in London for hotel property, but there is already supply in place to match it. You could argue that identifying areas of high demand, but low supply could result in greater yields. In addition, an investment in a hotel in London is likely to be higher than it would be elsewhere, so the capital you are willing to invest is something to consider.

You have to think long-term when it comes to investing also, and although London is currently top for hotel property investment, PwC global anticipate that this growth in London will not be sustained.

The report shows that investors should be looking at Europe for hotel investment, with Portugal leading the way for anticipated growth. With a 10% increase in RevPAR set to be achieved in Porto in 2018, and 7% in Lisbon, Portugal is seeing major economic growth. When compared to the anticipated 1% in London, the benefits of looking elsewhere are apparent.

Source: PwC analysis

With the result of Brexit fast approaching, it appears unlikely that London will remain as the top city for international hotel investment. London is, however, tried and tested as a fantastic option for hotel property investment, regardless of the fall in growth.

Seasonality

Something that can be overlooked when making an investment in a hotel is the effects of seasonality. You may be investing in an area that sees high traffic in the summer, but low traffic in the winter, and therefore you need to anticipate this.

Findings by Statista have found that December is the most profitable month for hotels worldwide, consider this when making a hotel investment. Choosing an area that has high demand all year round, although difficult, is not impossible.

Seville is a good example. Lonely Planet rated Seville as the best city to visit in 2018, and sees visitors flocking to the city all year round. The city hits its peak between the beginning of June to the end of September, but also sees high footfall in the month of December. The city is not hit with the impact of the low season when compared to other areas of Spain and is therefore a good investment location.

Potential drawbacks

Something to consider is that it can go wrong. Although this is not a common occurrence, your profits as an investor directly correlate to the success of the hotel itself. The RevPAR of an investment can be affected in many ways, some examples include the economy, terrorism fears in the area and even natural disasters.

These factors can positively affect your investment however. If you are investing in an area that is unlikely to draw any of these inherent problems, you could benefit from more traffic to your hotel investment.

When investing in hotels, you are at the mercy of any change of direction the hotel may choose to go in, even if you are not in agreement. For instance, the hotel may see an opportunity to target the luxury market. If this fails, the failure is shared with you as an investor.

You also have to take into account any management costs that the hotel will deduct from your income, something that is not included with other property investments. Ensure that management costs are explained, and that the contract clearly defines what this includes to avoid paying out large sums from your profits.

You may be investing in a future build. In the event that a developer liquidates, there is a reasonable likelihood that another developer will take on the project, though this cannot be guaranteed. As with any investment, you have to be aware that there is always an element of risk involved, even if this is usually small.

Conclusion

Investing in hotel property is a relatively straightforward and safe investment, with returns often provided over long periods. As with any property investment, it is important that you do some research into the development.

Get a realistic estimate on what the RevPAR is likely to be for the investment, taking into account location and trends in the market. Make yourself aware of the potential pitfalls of investing in a hotel and compare the benefits to other property investments, such as student housing or a different HMO. Ensure the contract you are signing is to your benefit and seek out an optional buy-back.

As with all property investments, a hotel investment could well be the investment for you, just be sure to do your own research.

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Our guide to everything you need to know about investing in student property.

Following on from our recent post about HMO Property Investments, we look at one of the most popular forms of HMO in student property.

Student Property has continued to see increased interest from international investors, and with good reason. Savills highlights that property prices in key areas for education in the UK are as high as 37% over the last three years. For perspective, investors that bought a house and then sold it during the three years from 2015 – 2018 could have effectively paid for a three-year university course with the profits alone.

How do you define a student property?

Student Property lets are a form of HMO, being purpose-built apartments consisting of studios or cluster flats. The properties are built with large communal areas, close to universities and have exclusive planning permission for student-use only.

You can either choose to invest and convert your own property into a HMO and target students, or you can invest in a developer’s large-scale student property. Either one of these options have their own benefits and drawbacks.

A HMO investment

There are many benefits to investing in your own HMO student property, many of these benefits were covered in our recent post here. To summarise, the yield when compared to standard buy-to-let (BTL) properties is a significant incentive.

With a HMO, you can obtain higher returns on your property as you have more tenants. You can charge more by letting out the rooms individually as opposed to the entire property. You also reduce personal risk through an increase of income streams, with more tenants paying the total rent.

Choosing to invest in your own HMO and targeting students means you also have an asset. You will have the benefit of owning the property that is likely to increase in value, given you have identified a high growth area.

As an investor, you also have the opportunity to receive profitable returns for many years going forward, this being for as for as long as you own the property, as opposed to a limited investment with returns over a pre-requisite period of time.

You are also in full control of your investment. There is no actual guarantee that you will get a return on a developer’s investment, and so by doing this yourself, you take full control and responsibility for your investment. Depending on your approach, this may be a safer option for you. Consider that an investment with a developer could be safer though, given the developer is specialising in the area.

To support this, guarantors come in the form of parents for most students. This generally makes rent receival far safer, and statistics show that students are some of the best tenants when It comes to paying rent. This research was carried out by Glide, a leading utilities and service provider, who also cite maintenance loans being used to fund the payment as being a major benefit.

A developer ́s project

Clearly then there are many benefits to investing in your own HMO property, but this may not be an option for many. The reason for this is the high level of capital required.

Purchasing a property outright is not an option for many. House prices in high growth areas, near reputable universities, are high. Of key areas such as Exeter, Birmingham

and Manchester, Zoopla report that for an average three-bedroom house you are looking at a purchase price of over £300,000.

When investing in student property through a developer, you can often invest as little as £25,000. Given you have researched the investment opportunity, and you have used a reputable investment broker, you should see a return on your investment.

FJP investments have provided returns on a range of property investments, including recent returns with the High Street Group.

Unlike regular HMOs, student property investments made through a developer are more hands off, allowing you to focus your efforts elsewhere.

You may benefit as an investor by making several investments through a developer or broker, this being an easier and more viable option for many investors. Consider the risk and rewards to this investment strategy though, be aware that higher returns on your investment generally means the risk is higher also.

The benefits are clear for a student property investment then, whether this is through your own HMO investment or a developer’s project. Something that hasn’t been covered, and is a major benefit shared by both investment strategies, is the high levels of demand.

Demand

Although there has been a steady demand for HMO ́s over the years, the demand for student property continues to soar. Universities cannot keep up with the demand to provide students with accommodation, and so often allow first year students only to stay in the halls of residence, with this making up roughly a third of total students.

Statistics published by UCAS also highlight that there is an increase in students attending university in 2018.

Although there has been a decline of 2% in UK applications to go to university, there is an explanation for this drop. There are 2.3% less 18-year olds in the UK now than there were in 2017, with 18-year olds making up the majority of university applicants. Proportionately then, the amount of applications is actually up by 0.3%.

In addition, there has been an increase in both EU and rest of the world applications for UK universities. EU applicants are up by 2% from the same time last year, and there is a substantial 8% rise in rest of the world applicants to a record high of 65,440, all of whom need accommodation.

In contrast to the housing market as a whole, the economy also has no bearing on the number of students applying to university. Surprisingly, findings by the CIPD show that as an economy falls, the number of university applicants actually rise. This is cited to be due to a lack of job prospects and tougher competition, both of these factors playing a part in individuals seeking further education.

Brexit itself appears to be playing very little part in the demand for student property, as highlighted by the UCAS figures.

A recent study by Savills further supports this high level of demand and the opportunities available in the student accommodation sector, with over £5.8bn being invested in the market in 2017, with this figure continually rising. This certainty of income is essential for investors.

Will my HMO appeal to students?

It is important that you do some research into how the property you are investing in is prepared and marketed, whether your own HMO or a developer ́s.

Findings by Unipol, a student housing charity, found that students favour properties that are more like homes. Of the most important things students wanted in accommodation, a fully furnished property, with high speed internet and comfortable rooms were most sought. Will the property you invest in provide this?

A recent post by bmmagazine highlights the increase in demand for luxury student accommodation. An ever-increasing number of students are turning their attention to premium offerings, with the demand for purpose-built luxury accommodation doubling over the last 10 years.

The main reasons for this being the accessibility of maintenance loans to supplement the costs, reliance on parents to pay the higher rent, and the value students are placing on a calm working environment. Many are seeing this as an academic advantage – It could be wise then to review investment opportunities that can appeal to this market.

If the property is of a high standard, your student tenant might end up staying long- term. Most university courses are three years, students may opt to do a masters for an additional year, and even then, may choose to stay in the city of study for work.

Keep an eye out for property that might be coming onto the market. There is plenty of competition, so the property you invest in has to be unique and appeal to the students that you will be targeting.

Where to invest?

As with any HMO, the location for your property investment is hugely important. It goes a step further when investing in student accommodation.

You have to identify an area with high demand for student property, but also a low level of supply for the area. A good example of this is in the North.

As covered briefly earlier, cities of high economic growth are important for your property investment. Due to the recent effects of `northshoring`, this being the influx of people moving to Northern cities such as Liverpool and Manchester, the economy in these areas is on a rapid rise.

Combined with an increase in applicants to both of these cities’ respective universities, this is one example of a good area to invest in student accommodation.

You also have to consider specific geographical location. Flats on the edge of town will of course be cheaper than in the centre of town, but you have to work out the potential return based on the rent you can charge.

Consider what students will desire from a property. By investing in a property with close links to public transport, or even walking distance to the university, will be a great selling point for the property. By also investing in central areas you can increase the rent charged.

Something to consider is that a property developer will have done this already. These properties will be custom built specifically for students, close to universities, and with marketing carried out to attract prospective tenants already. Again, this investment is far more hands-off.

Will you get a return?

As an investor, you will want to ensure that you are getting a return on your investment, and the statistics suggest you will.

DIGS, a real estate investment trust that owns ten halls of residence across London, report that the net asset value of student property is up by 7.2% for the first half of 2018. The reason for this high figure is apparently due to an ever-growing number of

applicants going to university, and an increase in rental price for student properties across the market.

However, an investment in a HMO still has the potential to fail.

When investing in student property through an developer’s project, you need to think critically about whether the firm will stand behind its ‘guaranteed’ returns. The success of the investment is essentially down to the rooms being occupied. If the company fails to market the property correctly, it may be unsuccessful, and you will not get a return on your investment.

Do the same research as you would if you were investing in your own HMO investment before committing to an investment of this kind.

If you are investing in your own HMO, the property has to abide by certain regulations. This is highlighted in our recent post about HMOs. To summarise, the rooms have to be of at least a certain size, and importantly, funding may be harder to acquire, with a phasing out of tax relief on mortgage interest.

It is important that you consider the additional cost implications to investing in your own HMO. You must calculate a realistic return on your investment to see if it is a viable investment.

Conclusion

With the total number of students on the rise, the market is flourishing. Demand has never been higher for student accommodation, and this is reflected in the high amount of investment into the market.

Assess whether you want to invest via a developer or go it alone, identify key areas for growth and high demand for student accommodation, and make sure the investment is appealing to the students you will be targeting.

Investing in student property is one of the smartest things you can do in 2018, just be sure to do your research beforehand.

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Our guide to everything you need to know about investing in HMOs.

As an investor, you have most probably heard of the term HMO, and are at least partly aware of the potential benefits. With the potential for high yields and an ever-increasing demand from prospective tenants, HMO property looks to be a sure-fire investment.

However, with stricter legislation coming into effect, and finance options becoming increasingly difficult to obtain for HMO investments, is this still a viable option?

What is a HMO?

A house of multiple occupation (HMO), also known as a multi-let, is exactly as you would guess, a single property in which there is more than one tenant.

More specifically though, the property will have at least three tenants inhabiting the property, with the toilet, kitchen and bathroom facilities being shared. The minimum of three persons living in the property must be from different households – those that are not married or otherwise related.

However, the specifics of what make up a HMO are not always so clear cut. From this graph, we can see that there are many factors that play a part in defining a HMO.

Why invest in HMO?

There are many benefits to investing in HMO property, with the obvious one being the increase in rental yields over single-let properties.

According to findings by GVA Redilco, HMO properties produced the highest yields in the first half of 2018 for the property investment sector at 7.1%. When comparing this against the average yield across all property types of 5.8%, the financial benefits are clear.

In addition to the increase in yield, a HMO reduces risk through a spread of income. When compared to a single let property with one source of income, the significance of this becomes clear. If your sole tenant doesn’t make a payment or simply moves out, the entirety of your income from the property is on hold.

With a HMO, there are more sources of income for the property, albeit these amounts being proportionately lower, but making up the same total. With this being a minimum of three separate sources of income, if a single tenant moves out or is not keeping up with payments, it only affects part of your income. This allows you a buffer to remedy the situation.

This is particularly advantageous if you are relying on the income of the property, so a HMO property could make for a great first investment opportunity.

Another advantage of investing in HMOs is the continual increase in demand by prospective tenants. Data from UCAS highlights that young students, those with the lowest average income, are applying to and finishing university at an all-time high in the UK.

When combining this with data from the Office of National Statistics, highlighting that disposable income has only been lower twice in the last twenty years than it is now, the financial benefits are felt mutually between tenants and landlords of HMOs.

Demand for HMOs rose by 100% in 2017, and 150% in 2016 according to Multi-Let UK. This rise in demand also looks set to continue in 2018 with tenants maintaining interest in the market.

Finally, there are some tax advantages to investing in HMO property. HMOs are treated like any other rental property, and this applies regardless of whether buy-to-let (BTL) or commercial financing has been used.

However, as opposed to conventional BTL properties, HMO property landlords can claim ´Plant & Machinery Capital Allowances´, a form of income tax relief. Yearly, a proportion of the capital outlay, these being the capital improvement and purchase costs, is treated as an expense for the rental business.

Importantly, Capital Allowances can be offset against non-property income, unlike normal rental losses that can only be offset against future rental profits. The result of this are tax rebates that can run for thousands of pounds.

What are the drawbacks to investing in HMO?

There are some obstacles you will encounter when investing in HMO that need to be acknowledged before considering an investment. The first being the increase in competition for HMO eligible houses.

With new legislation recently coming into place (covered in detail below), it is now harder than ever to identify a property that meets the requirements satisfied for a HMO property. The result of this means there is a disproportion of demand to supply, resulting in a scarcity of eligible property and a rise in prices.

Compounding this, the Bank of England shared concerns over HMO properties, stating that they posed a “systemic risk” to the UK economy, in which lenders are forced to impose stricter criteria on borrowing going forward.

Investors will therefore have more difficulty raising finance. Alternative financial solutions may need to be sought by landlords who currently own or wish to invest in such properties, with bigger deposits likely to be required for mortgages.

There are also far fewer letting agents that will manage your HMO investment when compared to standard BTL properties.

Many letting agents will be willing to assist with finding tenants, but very few are willing to fully manage the tenants for your property. If the agent is willing, the cost to you will be a far larger than a single let.

The likelihood is that you will be managing the property yourself in order to see the beneficial financial returns. Although the management of your property may seem achievable short-term, there is a lot of on-going work that is involved with this. A comprehensive list can be found here.

The legislation surrounding HMOs is also stricter when compared to single let properties. For example, under the Town and Country Planning Order 1995, an Article 4 direction may be in place for the area, whereby any property purchased must have planning permission sought to change the properties use from a single let to a HMO, unless the property being purchased is already operating as a HMO.

Not only can this be a lengthy process, but there is no guarantee permission will be approved. Given you have followed current regulations regarding requirements for HMOs, you should be approved, but new regulations recently introduced make this an even trickier task.

Recent legislation

New legislation has come into effect regarding HMOs, and if you are looking to invest, you will need to be aware of these changes.

This legislation came into effect on the 1st October 2018 and has influenced as many as 177,000 existing HMO properties, according to the Residential Landlords Association. This new legislation comes off the back of some challenges faced by the BTL market over the past few years.

One of these recent challenges includes the 3% stamp duty tax on all second homes and HMO properties in 2016. In addition, the phasing out of tax relief on mortgage interest over the four years to 2021 will affect many, and by 2021 this will be replaced with a flat 20% tax credit.

Before the new legislation, mandatory licensing was only enforced on large HMOs of at least three storeys and five occupants, comprising at least two-family units.

The new legislation encompasses smaller BTL properties within the scheme and extends to a wider range of properties previously unaffected by the mandatory licensing. This includes flats above shops, and small blocks of flats not connected to commercial premises.

In addition to extending the scope of the mandatory licensing, new regulations include the introduction of specific measurements regarding the minimum size of rooms, these being standardised across all councils. The minimum size of rooms is under constant monitoring and is something that landlords and investors need to be consistently aware of.

Now more than ever, if you are considering a HMO investment, you need to remain knowledgeable about the changes that are being implemented.

What makes a good HMO investment?

It is imperative then that the property you invest in meets the requirements for the extensive rules and regulations that are required of a HMO.

The rooms, as mentioned above, need to satisfy a minimum size. For those over the age of ten, single bedrooms sleeping one person need to be a minimum of 6.51 square metres in size, whilst a double bedroom sleeping two needs to be at least 10.22 metres in size.

Naturally, if you are looking to accommodate a minimum of three tenants, the property itself needs to have a good number of sizeable rooms, that ideally do not require extensive work or extensions built into them.

Small vs Large

When investing in a HMO, you must consider the size of the property and the potential for the number of occupants. There are advantages and disadvantages to investing in both small and large HMOs – you must identify what’s right for you.

Smaller HMOs are loosely defined as properties that house three or four separate household tenants. You could, in theory, purchase a three or four-bedroom house and rent these rooms separately. The planning permission for this will be easier, with only an article 4 direction to act upon if there is one in place for the area. This would mean that the property would get to the market faster.

The quality of living is likely to be better for the tenants also. With the rooms expected to be of a greater size, and a lower likelihood of tenants falling out with fewer people in the property, in theory, you will have happier tenants. Less tenants also means fewer potential problems and maintenance issues, so a small HMO is easier to manage and maintain.

The obvious advantage of a larger HMO is that your rental income will increase. This is achieved by either purchasing a larger property at a premium or by introducing refurbishments to increase the number of rooms in a property.

There could be as many as twelve tenants living within your large HMO. Whilst operating costs will grow to facilitate this increase in tenants, the financial benefits of the increase in rent will very likely outweigh this.

With less competition for larger properties, you may also find that you could get a better deal. Examples include small care homes and B&B´s.

You will of course need a higher initial start-up for a large HMO. The property itself will cost more. If you are investing in a property with the hopes of converting the rooms to facilitate more tenants, the costs for refurbishment will stack up, and will need to be done from the offset.

More facilities such as bathrooms and kitchens will need to be built to satisfy the needs of the tenants, as well as the rules and regulations in place for HMOs. This could take months. The property is unlikely to go to market as quickly as a small HMO, and you may be waiting longer for tenants too.

Naturally, the property will also be harder to manage. With more potential problems and a higher turnaround of tenants, the property management will be amplified as you increase your number of tenants.

You therefore have to weigh up how invested you will be in the property management side of the investment, and how much time and money you can realistically invest in your HMO property. If you are looking to build a portfolio of HMO properties, you will have to consider the income potential and cost of the individual rooms as opposed to the properties themselves.

It may be more cost effective, certainly long-term, to hold four five-bedroom HMOs than two ten-bedroom HMOs. Although initial investment may be higher for the four properties, the cost to convert these four properties, and then potentially revert them back again, will be lower. Increased man-management and time to get to market, combined with an increase in the spread of your held assets, may make it worth investing in small HMOs.

However, you may find your choice is made for you, as you have to consider what is available in your investment location.

Location is key

The location of your property investment is vital. A recent report by IBM highlights that areas in the North of the UK are excelling in terms of economic growth.

This is due to a rise in inward migration and available employment opportunities, with work recently being created for more than 7,000 people in Manchester and Liverpool alone. Cities in the North are seeing a huge rise in demand for affordable property.

This is supported by a recent study carried out by BDRC Continental, that highlighted the North West as having the highest rental yields for HMOs at 6.7%, with the lowest being Central London at 4.8%.

Investors have caught on, with Manchester now overtaking London as the number one city for international investment.

When considering an investment in a HMO, you also have to look at the demographic of people you are appealing to. Most of the demand for HMOs is from students and younger people with less disposable income. Naturally then, the location of your HMO investment should be in an area near universities, and with high-demand for lower cost living.

It is essential that the demand for HMO´s in your area of investment is sought before making your investment, and that you choose an area of high economic growth.

Know the market

Wherever you choose to invest, it is important that you also do research into other HMOs in the area. This will provide you with many benefits, the main one being that you can gauge what the average rental price is.

Once you have collected this data, you can identify a price you can realistically charge your tenants, giving you a better idea of potential yields. Doing this also allows you to assess the quality of the HMOs in the area.

Consider HMOs in the market as competition. You can assess what they are doing in order to succeed and look to build upon this. You may choose to operate as a premium HMO, furnish the property to a higher standard than the competition and charge a premium for this, but still price yourself under a standard BTL property.

The approach you take will be based on your research into the market and will give you a better idea of what is required to run a successful HMO.

To conclude

Clearly then there is a lot to consider when investing in a HMO, emphasising how essential it is that you have a plan in place before purchasing any investment property.

The benefits of investing in HMO property are potentially huge. Just be aware there are many hurdles you will have to overcome, and the management of HMO properties should play a large part in whether you choose to invest.

With a massive increase in yields for HMO properties when compared to single-let properties, and the continued rise in demand from prospective tenants, now really is the perfect time to invest in HMO property.

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Having operated successfully for over five years, Singapore investors have increasingly taken to working with FJP Investment on numerous property deals over the years. Investors in Singapore have identified FJP Investment as a reputable partner to be working with when seeking investments in the UK Property Market. At the same time, we have identified Singapore as being one of our key growth markets where the calibre of investors is very high.

So much so, we took the show on the road and exhibited at the Smart Investment and Property Expo.

The exhibition was a two day event held on Saturday the 22nd and Sunday the 23rd of September 2018 at the Sands Expo & Convention Centre, Marina Bay Sands. The venue provided the perfect environment in which we were able to showcase our latest title deeded care home investment opportunities.

We found a lot of value in being able to meet with our existing clients whom reside in Singapore whilst also being able to meet with new investors. We feel meeting with investors is crucial in terms of furthering and cementing our investor partner relationship.

Property Exhibition Singapore

Singapore is an interesting market in the sense that property investors are turning their attention away from the local market due to the Singapore government taking measures to cool the property market. In July 2018, the government introduced new stamp duty measures at an eye watering rate of 20% for foreigners and 30% for developers.

The effect of this has meant that Singapore based property investors are seeking out opportunities on the global stage.

Naturally, Singapore investors are targeting the UK property market due to the attractiveness of many of the developing cities on offer, some particularly high growth cities include but are not limited to Manchester, Liverpool and Birmingham. in addition to this, the high standard of customer service, high quality of law and a general affinity between the UK and Singapore, making the UK highly attractive to Singapore based property investors.

All in all, we are very pleased with the outcome and we look forward to working with our new investors as we continue to grow our footprint in Singapore and beyond.

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The High Street Group, a leading privately owned property developer based in Newcastle with developments throughout the United Kingdom, has just released its new corporate video. We consider the High Street Group to be one of our key partners and have found them to be an excellent partner in which we can comfortably introduce our investors to.

The High Street Group have successfully completed several funding cycles with its loan note investors and has a track record which speaks for itself.

Walled Gardens, Newcastle
Start date 21.10.16
Amount raised £740,000
Capital & Interest returned April 2017

Milton Keynes
Start date 26.09.16
Amount raised £2,607,500
Capital & Interest returned from May to July 2017 due to dates on contracts

Rutherford St, Newcastle
Start date February 2017
Amount raised £4,776,500
Capital & Interest returned July, August, October 2017 due to dates on contracts

John Street, Warrington
Start date April 2017
Amount raised £5,133,400
Due 21st Dec to 31st Jan 2018 due to dates on contracts

Liverpool St, Salford
Start date June 2017 Amount raised £1,988,000
Due April 2018

Westminster Works, Digbeth, Birmingham
Start date September 2017
Amount raised £6,200,000
Maturity date 40 weeks from date on agreement

The company made a profit of £26 million in 2016 and is currently working on projects worth close to £1 billion. Huge progress has been made by the High Street Group, they have more than 100 people employed and they have created a strong platform to create value for all involved.

The company has around 3,000 properties under construction or planned. There are so many opportunities for investors and with the High Street Group having delivered on a regular basis, they stand perfectly positioned to capture a significant amount of loan note investments.

High Street Group utilise investors funds in purchasing sites with full planning permission. They particularly focus on developments which are PRS Scheme approved.

What is a PRS Scheme?

The Private Rented Sector (PRS) is a classification of United Kingdom housing tenure as described by the Department for Communities and Local Government, a UK government department that has amongst its remit the monitoring of the UK housing stock.

Once a site has been purchased, the company will then utilise sales agents to sell the flats to homeowners and investors. The model is super simple and super efficient and this is why we love introducing our investors to this highly profitable investment opportunity.

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The post New Corporate Video from the High Street Group appeared first on FJP Investment.

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