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London Property

Is the London property market slowing?

Property Investor LondonWednesday 3rd December was the last McHugh & Co auction of 2014. Focusing on residential property in London this auction gives a good indication of the state of the London property market.

PropVestment attended the auction on the instruction of client’s interested in some of the lots on offer. Here is how it went:

Key observations:

  • Only 50% of the lots sold
  • Development lots sold the best, 5 of the 8 sold, at an average of £1.865m which was on average 55% above the guide price.
  • Houses did not sell well, only 3 of 9 selling, at an average of £499k, on average 17% above guide price. For the ones that did not sell, reserves were not met at an average of 3% above guide price.
  • Flats sold fairly well, 6 out of 10, at an average of 34% over guide price.
  • Lots in Zone 1 & 2 sold well and above guide, however many outside central areas did not sell.
  • Lots sold by councils, or trusts sold well, where as private sellers seemed to keep high reserves.

London property analysis

Developers were hungry for prime development lots in good locations, where there is confidence that final products will sell and where there is potential to achieve higher values. However locations away from prime residence or commercial zones did not fair so well. Some lots were offered by London Borough of Camden, the ones on normal residential streets sold well, but ones in proximity to estates and tower blocks did not. Council are cashing in.

Flats sold well, these are properties that are more affordable and hence there is greater demand.

Luxury houses suffered, where sellers are anticipating very high prices. The irony is that with the Stamp Duty announcement in the Autumn Statment these properties will be less desirable and therefore sellers will not achieve the prices they want.

Another factor that may contribute to slower sales is the up coming holiday season, with many auction lots requiring 4 week completions it is not desirable or possible to complete. Auction purchases require greater legal scrutiny and finance is still difficult.

For advise, appraisals or general consultancy on London property feel free to get in touch: info@PropVestment.com

London Property

 Note: PropVestment only attended the first 30 lots on offer, data is from first hand observation, although we aim to provide accurate information this information is not verified with McHugh and Co.

#AutumnStatement : UK Property Market

Property Highlights

  • Capital Gains Tax loophole closed

From April 2015, overseas investors will face a capital gains tax bill on any profits they make from UK property. It is only fair to make overseas investors pay capital gains tax (28%) on the profit they make when they sell their UK properties. That is what British second homeowners are required to do, so why not foreign investors too.

  • £1bn made available for property development loans

£1 billion of loan money is to be made available to councils wanting to fund new housing developments in Manchester, Leeds and elsewhere (expected to create 250,000 homes). House building is up by 29% on last year. It is a figure warmly welcomed by construction firms such as Persimmon, Barratt and Taylor Wimpey, though many large financial firms such as L&G insist house building should be a much higher and more urgent priority.

For Help to Buy, Virgin and Aldermore will be offering mortgages too.

  • Aim to keep interest rates low

The aim of many tight regulations in banking and financial industries is to encourage responsible lending and so it is possible to maintain low interest rates. This is vital to the general economy and must be fought against rising house prices. So house prices will need to be kept under control.

 What does this mean for a property investor?

Autumn Statement UK Property Capital Gains TaxFirstly if you are a foreign investor then much of the benefit you got have been diminished. However if you are not, this is great news. It will mean that foreign investors may start to put there money else where. This means there will be less competition from “Cash Oversea’s buyers” when you are after a property. Prices should also correct accordingly. Overall a good policy for UK property buyers and also the increased tax revenue will help the public too.

Funding for house building and developments will increase housing supply and keep construction jobs strong. However will this only benefit the house builders who sell at inflated prices? Possibly. The impact on the normal UK property investor will be minimal.

Low interest rates are welcome for investors, however it depends if new finance is available. Overall it will at least mean that investors’ current mortgage payments stay low.

Overall a good Autumn Statement for the UK Property investor.

 

 

#Budget2013 : Help to buy – impact on UK property market

Will the “Help to Buy” scheme help home buyers?

Budget 2013 Help to BuyThe Chancellor, George Osbourne has announced the budget for 2013 and beyond. Overall the budget covers all aspects or work and life in the UK, however we are concerned with property.

The head line for property has been the “Help to Buy” scheme.

There are 2 options, one for new buyers and new homes only and one for all property and buyers.

The below options breakdown are provided by Zoopla blog on the budget

Option 1: Help to buy – Equity Loan

-Is it applicable to any property?
No, just new build only

-Deposit required?
Yes, minimum of 5% deposit

-Do I have to be a first time buyer?
No, this scheme is available to all, not just first time buyers

-How does it work?
The Government will lend you up to 20% of the value of your property through an equity loan, which can be repaid at any time or on the sale of your home…so you will only need to secure up to a 75% mortgage from a bank or building society. It is interest-free for 5 years

-When does it start?
The scheme is available from 1 April 2013. It will run for 3 years and provide £3.5billion of additional investment

Option 2 – Help to buy – Mortgage Guarantee

-Is it applicable to any property?
New build and existing homes

-Will I need a deposit?
Yes, you’ll need a minimum of 5%

-Is it only open to First Time Buyers?
No, it is also open to existing homeowners

-How does it work?
You’ll need to secure a mortgage for your purchase. The Government guarantee should help encourage lenders to offer better access to low-deposit mortgages

-When does it start?
Available from January 2014, this scheme will run for 3 years

-Is there a maximum purchase price?
Maximum value £600,000

 Other points from the Budget 2013:

  • Budget 2013 help to buy21 % corporate tax rate – potentially beneficial to buy rental properties into a company rather than private names
  • Encourage to convert unused commercial space into residential

London Mayor, Boris Johnson has also secured £750 million for new build housing in the capital. This will boost affordable housing for middle income Londoners.

Official details can be found here: HM Treasury – pages 38 & 71

PropVestment’s thoughts

Overall we believe that the budget is progressive for the UK Property market, however it could have done more. However it seems that Help to Buy is more universal and will help more of the population. It is now for us to see how it filters through in reality. Many other schemes like NewBuy and FirstBuy have been less successful

 

Contact PropVestment today for a chat, we advise on all property investment queries. Lets make money from property

 

Allsop Residential Property Auction February 2013

Allsop Residential Property Auction – February 2013

Interesting observations from property auction

Allsop Residential Property Auction February 2013

This Valentine’s day, Thursday 14th February we attend the Allsop Residential Property Auction in London’s Cumberland Hotel. Never have we seen such a packed out property auction room, it is not a small venue however felt more like a cattle market.

As usual we will bring you some facts of what sold and what did  not sell in the property auction, as well as what properties were bargains and what were bank busters.

Key observations include the expected high priced sales in London in particular in area such as Kensington, Chelsea and Fulham. Properties in North of England did not sell well with most of those present in the auction purely focused on London property. Finally a surprise observation was that of ground rents. These seem to be longer term but much more secure investments, with the bonus potential when it comes to extension or other approvals.

There were many regulated tenancies, therefore sold much below the vacant value of such properties. There was a great deal of lots that were for the unconventional investor.

Property Auction: The numbers!

The Allsop Residential Property Auction featured 288 lots, therefore it was not possible for PropVestment to stay for all. We stuck around until Lot 87, which really meant 72 active lots, with 19 withdrawn or sold prior.

  • Out of 72 lots, 56 sold with 16 where the Reserve was not met. 78% Success
  • Average highest bid was £287k but the average selling price was £237k.   Average unsold lot highest bid was £459k. This shows that the higher value lots struggled, with sellers keeping higher reserves.
  • Average sold lot was 27% higher price than the guide. Where as the average reserve not met lot was 3% under guide.

Residential Property Auction Bargains

  • Lot 61 – 3rd Floor 3 Bed Duplex Maisonette in W13, London, Rent on AST at £22k – Sold for £150k ….almost 15% rental yield…. 98 years lease left
  • Lot 76 – Freehold Public house in Wiltshire with a 9 year commercial lease at £24k rising to £25,880. Sold for £180k…. 14.4% Yield…pays for itself in under 7 years

Residential Property Auction Bank Busters

  • Lot 32 – £1300 Ground rent investment, Sold for £54k, and the leases are 124 years to run, only 2.4% yield
  • Lot 23 & 24 – Ground rent investment in South Kensington, £2k  and £2.4k per annum respective and went for £235k and £460k respectively. However there were flats in the buildings with under 25 years lease left. So the value is instilled with these rather than the ground rent income.
  • Lot 53 – Commercial with 11 years lease, and flat on regulated tenancy in Dorset. Sold for £181k, currently yielding 6%

Upcoming Property Auction’s PropVestment will attend:

Barnett Ross: Thursday, 28th February 2013 12 noon Catalogue now online
Radisson Blu Portman Hotel, 22 Portman Square, London W1H 7BG

Salter McGuiness: Tuesday, 5th March 2013 1330 Catalogue now online
Quality Hotel, Empire Way, Wembley, HA9 0NH

Next Allsop Residential Property Auction Catalogue

Property Auction Final Say

Property auctions still seem like a great place to sell, especially if the property you own is not finance friendly. Meaning that traditional buyers will falter at a mortgage stage. There is a lot of auction activity at the large auctions but there is a massive bias to London.

PropVestment can help you vet potential investments and guide you to make the right choices for selling or buying property in auction. The property market is changing and you need to be fully informed prior to any decision.

Call us today for a chat: 07960 344 399

Previous Auction articles can be found in the Auctions section.

Official Allsop Results

Allsop Residential Property Auction Feb 2013 results

 

UK property market HS2

#HS2 – High Speed 2 implications on the UK Property Market

UK property market HS2With the announcement of the HS2 today, there has been much in the media, with a lot of criticism. We at PropVestment want to focus on the implications of HS2 on the UK property market.

Economically this will create jobs and provided technology is sourced within the UK will benefit us in the long run.

In terms of the thousand or so homes effected, we believe they have been offered 110% the market value of their property prior to plans announced. Home owners have got a good deal, especially in some northern reaches where the UK property market is almost non existent as UK potentially drops into a “triple dip” recession.

How does HS2 effect the UK Property Market?

  •   HS2 impact on UK Property MarketReduce Pressure on London
    As commuting becomes easier with journeys under an hour from Birmingham to London, similar to a journey from Zone 4/5 to Zone one within London. Therefore many will choose to locate outside London. Benefiting from lower property prices and potentially larger homes.
  • Revival of Northern Property Markets
    As from locations will be commutable to the major cities and London. Hence more people will choose to locate in those towns, boosting house demand and rentals too. Landlord’s and investors will find these areas as more attractive places to invest. First time buyers and young professionals out priced by London have the option of settling in Manchester, Sheffield, Leeds or Birmingham and able to travel more easily.
  • Revival of UK Construction
    It is inevitable that there will be need for new home and in the areas surrounding the HS2. Primarily for the construction workers and secondary for the end users who look to make use of the HS2 rail link.

 

Where to buy UK Property Top Tip: Totan, Nottinghamshire

Read more

Tesco Mortgage Buy to Let

Supermarket Tesco launches 1.99% Mortgage – every little helps

Tesco Bank launches fixed 1.99% Mortgage

Tesco Mortgage Key Facts

  • Tesco Mortgage Buy to Let1.99% Fixed until end 2014
  • 4.24% There after
  • 4.00% APR
  • £995 Arrangement Fee (£195 Booking Fee, £800 Product fee)
  • 60% Maximum LTV (Loan to Value)
  • More suited for Remortgages than First Timer Buyers

 

Tesco Bank 1.99% Mortgage

Read more

PropVestment in Telegraph Property

Ex-council homes: how to buy a bargain – Telegraph

PropVestment mentioned in the Telegraph Property section: Why Council homes are a bargain

By  7:00AM BST 03 Sep 2012

A new proposal to sell off council housing in some of Britain’s best postcode areas could be a once-in-a-lifetime investment opportunity. It is no time for snobbery, says Graham Norwood.

Ex-council house in Essex

This 17th-century former hunting lodge in South Ockendon, Essex, used to be three council homes, and is today a six-bedroom house. It’s on the market through Fine (fine.co.uk) for £449,995.

It is one of the biggest property stories of the year, and an opportunity for bargain hunters like no other. When the Telegraph published an article about selling off council houses, by Neil O’Brien, the director of Policy Exchange, it had no idea what a storm it would create.

Last week’s report argued that if councils sold all the homes which become free in an average year, they could raise £4.5bn in revenue. This money would then be ploughed back into 170,000 new-build properties in cheaper parts of the country. The story provoked plenty of debate. Grant Shapps, the Minister for Housing, called the idea “blindingly obvious”. David Cameron said the proposal was “certainly something [councils] should look at”. Not everyone was happy: some Labour MPs warned that it risked creating ghettoes and ruining local diversity.

But aside from the political to-ing and fro-ing, what does it all really mean for homeowners? If cheap houses become available in some of Britain’s best areas, it could provide golden opportunities for canny investors. Certainly, it is time to end the snobbery and acknowledge the truth. Many local authority homes are fashionable, built to last and brilliantly located. For every hideous tower of cheaply built flats requiring demolition, there are spacious low-rise mansion blocks. These date from the public sector heyday of the Thirties, now considered retro-chic.

Then there are thousands of Victorian and Georgian houses, originally built for private sale. Councils bought them as part of grandiose regeneration schemes, many of which came to nothing. But a sprinkling of 21st-century TLC would return them to their former glory, or even better.

There are substantial profits to be made, as has been seen in areas where council properties have been sold in the past. Camberwell is a good example. A two-bedroom council flat bought here for £44,000 in 1994 recently sold for £214,000. During the intervening years, the area has come up in the world. Where once it was slightly grubby, it is now a fashionable village, home to the musician Florence Welch, as well as actresses Lorraine Chase and Jenny Agutter. If a new sell-off becomes policy, there may be thousands of homes coming on the market in the most desirable parts of the country. Often at bargain-basement prices.

In the London borough of Kensington and Chelsea, for instance, the average flat costs at least £967,000 and a typical semi-detached house costs more than £12.5m, according to Land Registry figures. Even in this salubrious enclave, however, a quarter of homes are categorised as social housing: owned directly by the council or through housing associations. In Brighton and Hove, there are similar opportunities. A typical detached house costs almost £461,000, and a flat will set you back £197,000. Yet one in every seven properties is in the social sector. Here and elsewhere, a sell-off would mean ex-local authority properties being marketed at prices lower than those for comparable private homes. There would be rich pickings, for those in the know.

“Even in prime condition, ex-council properties sell for 20 per cent less than a similar home next door because of the stigma,” says Geoff Tanner, a private property consultant based in Cambridgeshire. “If it is in poor condition, it could be 30 per cent less. The proposed sell-off would represent a great deal for buyers who get in quick.” Some councils are already encouraging tenants to free-up larger properties. In Devon, more than £700,000 worth of cash incentives have been paid to tenants. This has released 330 homes in areas such as Exeter, Plymouth, rural Devon and the coastal South Hams.


This one-bed, ex-council flat is in Drury Lane in Covent Garden. It is being sold for £437,000 through Chesterton Humberts.

Westminster Council, in central London, has set up CityWest Homes Residential, a service specialising in marketing council homes. Its website, cwhr.co.uk, advertises flats to rent in areas such as Bayswater and says homes for sale are “coming soon”.

With all this activity already ongoing, it’s no surprise that estate agents have greeted the prospect of a sell-off with open arms. They highlight the advantages of council-owned buildings compared with those which have been squeezed by the private market. “Council properties are often well-built with good-size rooms and communal gardens,” says Christopher Saye of Chesterton Humberts. “Red-brick period blocks don’t even look like council properties and generate plenty of interest. They are cheaper than comparable private developments, with far lower service charges.”

During the Eighties, Margaret Thatcher’s Right To Buy initiative allowed tenants to purchase their homes with a discount of up to 70 per cent, if they had lived there for two years or more. Many councils also offered 100 per cent mortgages to encourage buyers. The scheme boosted Britain’s home ownership level from 57 per cent in 1980 to 68 per cent in 2000.

But the sort of sell-off proposed by Policy Exchange would be even more dramatic. It would be an open field, with anyone entitled to buy the flats. Not just those already living in them. “It’s simply good asset management. Some local authorities do this already. We’ve sold properties in high-value areas at auction on behalf of authorities,” explains Yolande Barnes, head of research at Savills and one of Britain’s leading housing experts.

Clearly, there is no shortage of enthusiasts for the quality and good value offered in ex-local authority housing. Nirav Shah, 24, bought a three-bedroom apartment in Waterloo, central London, in 2008 when he was a student. “My father and I looked at lots of properties and none even came close to the former council flat for location, space or condition,” he explains. He now runs a property investment firm called propvestment.com. “I no longer live in the flat, but I rent it to other students. It has been let permanently since I left. Ex-council is a perfect investment,” he adds.

His apartment was one of many built to Parker Morris standards, a planning regime which until the Eighties imposed minimum sizes on public-sector architects and builders. Parker Morris stated that a one-bedroom council flat built for up to two people should have a minimum of 495 sq ft. Try finding that in a modern private flat today. The standards have even got a thumbs-up from London Mayor Boris Johnson, too. After taking office, Johnson promised to “re-establish space standards promoted by the visionary planner Sir Parker Morris”. He argued that this was the only way to “build for the long term. Buildings that people will want to keep for 100 years and not tear down in 30.” Space, location and value: the council-house dream seems almost too good to be true.

But while many are in favour of selling council homes, there are still issues to resolve. “One concern might be tenant displacement,” says Jennet Siebrits of CBRE, a consultancy advising developers and public bodies on housing. She fears new homes built with money from a sell-off would have to be in cheaper areas. “We would need careful analysis about which parts of the UK have the highest demand for social housing,” she says.

There are also concerns that moving council tenants away from their places of work could create pockets of unemployment, and ruin the mix of people which makes Britain so vibrant. Policy Exchange believes, however, that these short-term problems would be outweighed by the benefits of creating half a million new homes in three years.

So will it actually happen? With a Cabinet reshuffle imminent and a relaunch of the Coalition likely at this month’s party conferences, there is an appetite for radical initiatives. And no sector needs them more badly than housing. A boom of new construction would create homes for the needy and jobs for builders, as well as opportunities for people looking to get on the property ladder.

A social housing revolution may be just the economic shot in the arm the country wants. And for keen-eyed individuals, it could be the investment of a lifetime.

Buying an ex-council property: the pros and cons

Pros: 
Price – they usually sell at 20 per cent less than comparable private properties, says the Royal Institution of Chartered Surveyors.
Investment – ex-council houses are good for buy-to-let landlords wanting more for their money.
Location – ex-council property is often very central, perfect for transport and nightlife.

Cons:
Outside – tower blocks can look daunting from the street.
Communal areas – there can be disputes over charges and responsibilities if some flats in a block are publicly owned and others private.
Ceiling price – until the stigma dies, ex-council homes will sell at a discount compared to private homes.

Original article link http://www.telegraph.co.uk/property/9508685/Ex-council-homes-how-to-buy-a-bargain.html

OTHER MUST READS: PropVestment in Daily Mail

 

11 Adjacent 3 Bed 2 Bathroom House in Edgware

Investment or Development Opportunity in Edgware

£2.7 million ONO          Edgware HA8 5ED, North London

Potential to build 30-36 flats.

There is tremendous potential to build into flats and planning permission should not be a problem.
From early estimates it is project that should easily double to triple any invested funds with very little down side risk.
The current rentals will pay the mortgage while planning stage is underway.
Further once plans in place investors can start selling off plan and exchange on 10% hence providing much of the construction cost, further funding can be raised through a development loan.

Development opportunity

* BLOCK OF 11 INVESTMENT PROPERTIES FOR SALE *

* INDIVIDUALLY PRICED BETWEEN £269,950 – £279,950

* SUBSTANTIAL DISCOUNT FOR PURCHASE OF ALL PROPERTIES

* 3 BED HOUSES LET ON ASSURED SHORTHOLD TENANCIES

* GAS CENTRAL HEATING *

* DOUBLE GLAZED *

* APPROX 50′ GARDENS *

* APPROX. HALF A MILE TO EDGWARE AND BURNT OAK TUBE STATIONS *

TYPICAL EXAMPLE No 267

The accommodation comprises with approximate room dimensions:-

ENTRANCE DOOR TO:

HALLWAY
Radiator, stairs to first floor landing, doors to:-

FRONT RECEPTION/BEDROOM THREE 10′ 0 X 9′ 5 (3.05M X 2.87M)
Double glazed window, radiator.

KITCHEN 9′ 4 X 7′ 4 (2.84M X 2.24M)
Range of white wall units,matching base inits with laminated worktops over, inset stainless steel sink unit with cupboard under and mixer taps. plumbed for washing machine, built under oven, gas hob with extractor over, space for fridge/freezer, radiator. Door toLOUNGE 18′ 0 X 11′ 6 (5.49M X 3.51M)
L shaped, coved ceiling, radiator, upvc double rear doors to garden.

DOWNSTAIRS BATHROOM/W.C. 
White suite with panelled bath with shower/mixer taps, pedestal wash hand basin, low level w.c., part tiled walls, tiled floor, extractor fan, radiator.

LANDING 
Access to loft, doors to:-

BEDROOM ONE 13′ 0 X 9′ 6 (3.96M X 2.90M)
Radiator, front aspect double glazed window, coved ceiling.

BEDROOM TWO 9′ 3 X 7′ 9 (2.82M X 2.36M)
Double glazed rear aspect window, radiator.

BATHROOM/W.C.
Panelled bath, pedestal wash hand basin, low level wc.wall mounted gas central heating boiler.

REAR GARDEN
Approx. 50′ paved patio with steps to lawn, close board fencing, shed

PLEASE NOTE: WE ARE INFORMED BY THE OWNER THAT THE PROPERTY IS LET ON AN ASSURED SHORTHOLD TENANCY FOR £1100 PER CALENDAR MONTH UNTIL 22nd APRIL 2013.

DOWNLOAD DETAILS PropVestment – Edgware

info@PropVestment.com

 

Where to invest in India: Rajkot, Gujarat

Where to invest in India: Rajkot, Gujarat

Why is Gujarat where to invest in India?

We have seen that compared to other states Gujarat under the leadership of Narendra Modi has experienced rapid double digit growth for the last few years. There are no signs of slowing down either with many new investments in infrastructure underway. The investment opportunities for NRI’s are huge, you just need to know where to invest in India.

Gujarat experienced 11% growth for 2011, higher than China

 Why is Rajkot where to invest in Gujarat

Where to invest in India: Rajkot, GujaratRajkot is the capital of the Saurashtra region of Gujarat and the 4th largest city of Gujarat.

Rajkot is ranked 22nd in The world’s fastest growing cities and urban areas from 2006 to 2020

Rajkot is well placed between the booming Jamnagar port and economic centre of Ahmedabad. In the future once the Dholera SIR is developed it will be within 170km distance.

Jamnagar is home of the Reliance Refinery. Rajkot is between Jamnagar and the motor hub that is developing in Sanand, home to the Tata Nano and other new facilities.

Therefore Rajkot will be a place with increasing commerce and activity, and will hold an increasing significance in region.

 OPPORTUNITY in Rajkot – ACE Riverside

Location:

  • Jamnagar – Rajkot Road
  • near the New Rajkot Cricket Stadium,
  • near the proposed New Airport.
  • Surrounded by 17 acres farm land and the Nyari River.

Property:

  • Two towers of 10 Floors,
  • Each with 4 x 2BHK condos on each floor.
  • Each condo is 1360 sq ft.
  • FREE House Keeping
  • Fully furnished option

Complex

  • Swimming pool and Jacuzzi
  • Multipurpose Hall with AC
  • Party Lawn
  • Mini Golf
  • Cafeteria

Prices: from INR 32 Lacs

Call today for more information: 07960 344 399

DOWNLOAD FULL BROCHURE

Read our other articles on Why invest in India over the UK, Special Enterprise Zones and cities such as Jamnagar and Ahmedabad

ACE Riverside was exhibited very successfully at the HDFC India Homes Fair recently

Invest in India instead of UK

Why invest in India rather than the UK

Why investing in India has become a better option

Invest in India instead of UKFrom PropVestment’s recent visit to India and the subsequent dealing and observations from the UK property market we have found a strong case to open the mind and change investment strategies and to invest in India

Breaking this into two arguments, one a basic economic one based on macro observations and trends, and then a more micro one with the current property climate and lending situation in the UK.

Why invest in India – Macro: Economics

Population: Indian population growing by around 16 million a year
This mean there is a continued demand for new housing. Furthermore the average household size is falling so this makes demand even greater.

Income & Growth: with over or close to double digit growth.
The growing affluence means upgrading housings, smaller family units, means demand is rising.
Gujarat has experienced double digit growth and shows no signs of slowing down with huge infrastructure projects. These include new cities like Dholera in an SIR (Special Investment Region) and SEZ (Special Enterprise Zone)

Indian government are spending to develop:

  • High-speed rail freight lines.
  • Power plants to supply an additional 4,000 megawatts.
  • Three new sea ports.
  • Six new airports.
  • 12 new industrial clusters, and more.

Increasing Indian middle class — 500 million and growing
Spending their newly-earned money, ramping up retail sales growth that should average 13% or more for the next several years. This means demand for houses and retail space ultimately increases too.

Overall the Indian property market is one of capital growth rather than rental yields. Basic economics of demand and supply states that with demand rising so much, prices will keep rising, therefore there is plenty of capital gains to be made.

Why invest in India -Micro: UK Property market vs India

UK Prices:
House prices remain very high as sellers do not accept the new market house price levels and are holding out. This results in a sale not happening so the roll over sale doesn’t happen and the market stagnates.
Further the high prices have out priced many first time buyers.

UK Lending:
Even though new products such as Helpful Start and other schemes to encourage lending have come on the market, lending is still very tight. The criteria has stopped many who would have previously got a mortgage, unable to do so.

Risks Vs Returns:
Risks in India used to be fairly high, however now with legal contracts, a stronger financial and legal system it is almost as safe as the UK.
Further with your returns not coming primarily from rentals, the risk of rent is not significant.
The risks in UK have risen with higher risk of rental default as well as in some areas uncertainty with future prices. Overall the risk and reward scenario was very different across these two markets. However they are now coming together with returns significantly higher in India.

 

Criteria

UK

India

Average minimum Capital needed

£50k

£20k

Expected Annual Price rise

5%

20%

Risk

Medium

Medium

 Why invest in India -Proposal

For the young investor or experienced we believe India is a fantastic opportunity.

For the young investor or first time buyer we suggest that if you do not have enough saved for a deposit in the UK, invest in India where you can pull out within 12-24 months and then with the returns you will have enough to buy your property in the UK.

For the experienced investor, you can make significant returns in an hassle free way.

We can advise on many investment options from the top Indian developers with plots of land in excellent locations starting from under £20k.
We have links to Hiranandani, Othello, Synthesis, Ajmera, ACE, Bakeri, Gala and more….

Call us today for FREE advice to explore your options.