Salford Quays Phase two
INvestment Highlights • Prime property in an excellent location • 6% assured NET rental yields for 5 years • 60-unit development, comprised of 1 and 2-bedroom apartments • 10-minutes from Manchester city centre • Within walking distance of local shops, restaurants and bars • Onsite rental management company
Knight Knox International provides the information contained within this document as a general guide. This information does not constitute an offer or a contract and we (or anyone in our company) do not imply, make or give any representation, guarantee or warranty whatsoever relating to the terms contained within. Any intending investor must satisfy themselves as to the correctness of any of the statements, plans or images contained within. Images are for representational purposes only. The content contained within is correct adhering to the previous statement at the time of publishing.
X1 Salford Quays Phase Two The highly-anticipated Phase Two of X1 Salford Quays has been launched in response to the towering success of the first phase, which is now 100% sold out and on-course to be completed by the end of the year. Built to the same exacting standards as the first 60 units, Phase Two will be comprised of an additional 60 apartments, with an emphasis on 2-bed units, in keeping with the demand received from investors during the launch of Phase One. The popularity of the development has stemmed from its almost unique position as one of the only new-build residential projects to be brought to market in Manchester for the last 5-6 years, fulfilling the need for highquality rental stock in the city.
Located in the vibrant and trendy Salford Quays area of Manchester, home to MediaCityUK and the BBC, X1 Salford Quays is the ideal location for city centre workers or commuters, due to its close proximity to the city centre and accessibility to the central motorway network. Work is expected to commence on the new apartment block in January 2014.
Salford quays phase one,
100% Sold Out !
About Buy-to-Let The traditional buy-to-let market in the UK’s regional cities is beginning to show strong signs of recovery. For the past 3-4 years, the buy-to-let and off-plan market in London has seen unprecedented growth, in the main due to the large amount of foreign investment that has poured into the city.
“By 2020 it is estimated that 1/3 of the population will be a private tenant”
Continuing on from this trend, Manchester is one of the strongest rental markets outside of the capital, due to a severe shortage of newbuild stock for at least the past five years, providing investors with the
opportunity to purchase at the start of a market cycle. Once considered the proverbial ‘cash cow’ of any property portfolio, when the market crashed, landlords found themselves having to diversify their assets into alternative investments, as a way to maintain control over their funds - but the market is beginning to turn! The demand for rental accommodation in the UK is the highest it has ever been, as the continued rise in house prices ensures that first-time buyers cannot afford to take that first step onto the property ladder. Instead, tenants are looking for high-quality rental accommodation, in properties which they can essentially move straight into, without the hassle of waiting for it to be redecorated or repaired.
No investment can ever be considered safe, but there are certain sectors, like buy-to-let, where you can minimise your risk. Purchasing a buy-to-let property is once again being viewed as a way to generate a positive cash flow on your investment, as income is generated not only on rent, but from the capital appreciation gained on the property from the start.
So is buy-to-let still a ‘safe’ investment?
So why choose off-plan?
The UK has experienced a serious lack of construction in regards to residential stock in its regional towns and cities for the last 5-6 years, which means that many properties which will previously have been classed as ‘new-build’, are now reaching their 10-year anniversary. As properties age, they require more maintenance to keep them at a level regarded as the minimum standard required by tenants, leading to a rise in rents as landlords try and re-coup some of the money they are having to pay out.
As the construction industry begins to pick up pace, we are at the start of a new wave of off-plan developments, many of which will not be complete until 2013/2014. Keeping in mind tenant demand for new-build accommodation, particularly in or around city centres, landlords can charge a premium on their property, at rates which are currently not achievable for existing stock. Buy-to-let properties are increasingly becoming a more ‘hands-off’ investment than they have ever been, due to the improved quality of the lettings and management agencies that maintain the property. This leaves landlords confident that their tenants are being looked after and, coupled with the knowledge that there should be minimal maintenance
required on the property for at least the first couple of years; off-plan buy-to-let is actually a cheaper option in the longterm for any savvy investor. Constantly sourcing the best-value properties, we have once again extended our portfolio to bring off-plan, residential buy-to-let opportunities to our investors, in some of the best locations in the UK.
Private rental stock is now worth an estimated £898 billion
Why Invest? By 2020 as much as a third of the population could be private tenants
Average gross rental yields of 7.6% recorded in Manchester
The Buy-to-Let market in figures According to property research specialist Savills, the results of the 2011 census show that the number of households across England and Wales in the Private Rented Sector (PRS) grew to 4.2 million between 2001 and 2011, accounting for 18% of the market and further highlighting that Britain is increasingly becoming a nation of renters.
Manchester named in top four in the UK Buy-to-Let hotspots by HSBC in 2013
Investment Opportunity Phase Two of the X1 Salford Quays development will contain 60 luxuriously furnished apartments built over four floors, in addition to private parkingand secure bicycle storage on the ground floor. Prices start at £87,500 for a 1-bed on the first floor and investors are offered on assured NET yield of 6% for the first 5 years.
Average rents in the 5 main urban markets of Liverpool, Leeds, Manchester, Bristol and Birmingham for 2-bed properties have risen by an average of 2.5%
One-bed apartments Two-bed apartments
from £87,500 from £107,500
Investment Projection Purchase Price Est. monthly rent Est. annual rent Est. maintenance fee Est, management fee Est. ground rent Est. NET income Est. NET yield
£87,500 £625 £7,500 £1,200 £600 £250 £5,450 6.2%
(typical after 5-year rental assurance)
Figures are based on forecasts provided by the developer and are subject to change. Any financial information provided in this document is intended as a guide and does not constitute a contract.
Recommended Solicitor: Blunts Solicitors With over 150 years’ experience at delivering legal services, the company specialises in conveyancing and property law and was one of the first firms in the UK accepted into the Law Society Accredited Conveyancing Quality Scheme. The scheme is only open to members of the Law Society and requires practices to undergo a strict assessment, compulsory training, self-reporting, random audits and annual reviews, in order to maintain CQS status. The scheme has the support of the Council of Mortgage Lenders, the Building Societies Association, Legal Ombudsman and the Association of British Insurers. We have acted and continue to act daily for numerous buyers of investment buy-to let-properties, including the specialist student accommodation investment market. All figures correct as of August 2013
Local Comparables
2-Bed Apartments ÂŁ825 PCM
Number One, Salford Quays Presenting these stylish apartments in the heart of The Quays’ ,this apartment is furnished to a very high standard. Benefiting from 2 double-bedrooms, a large open plan lounge and spacious bathroom, this apartment also has a large balcony and secure parking.
XQ7, Salford Quays Offering a unique combination of idyllic location and uninterrupted views over Erie Basin in the historic Salford Quays, this exclusive apartment lets anyone with a dream of waterfront living find their perfect home. Transforming the skyline in Salford Quays with its contemporary architecture, the apartment complex is situated on the Manchester metro link, within walking of the new BBC/MediaCity site and the Lowry centre and will offer some of the most luxurious living spaces in the city.
1-Bed Apartments ÂŁ695 PCM
Local Comparables
2-Bed Apartments ÂŁ650 PCM
Broadway, Salford Quays A superbly presented two-bedroom apartment in this stylish development on Broadway situated close to Salford Quays’ major attractions including Media City, The Lowry Theatre and the Imperial war museum. The property is also situated close to a major transport link to all areas of Manchester.
XQ7, Salford Quays Built by Lowry Homes, XQ7 is a high spec development with it`s own private entrance to the Metrolink station at Exchange Quay for XQ7 residents. This fully furnished apartment of the highest quality and design is located on the 12th floor and has the added benefit of a balcony with good views. The open plan kitchen features integrated dishwasher, fridge freezer and washer dryer. In addition, the floor tiling in the kitchen and bathroom incorporate an underfloor heating mat to raise the surface temperature of the tiles to provide maximum comfort underfoot.
1-Bed Apartments ÂŁ725 PCM Information taken from RightmoveUK on 07/09/2013
WHY Manchester? The third most popular destination for international visitors in Britain, Manchester attracts over 900,000 visitors annually and is home to over 500,000 residents, including over 50,000 students of many different nationalities, who help to make Manchester a truly International city. Visitors from all corners of the world continue to board planes to Manchester International Airport because of the city’s impressive number of attractions.
Manchester is home to over 500,00 residents
The many eateries and coffee shops which line its streets, coupled with
attractions such as the Museum of Science and Industry (MOSI) which celebrate the innovative nature of a city that invented the computer, continue to lure tourists to the city.
£4.9 billion will be spent on construction in Manchester ovr the next 10 years Manchester lies at the heart of an expansive motorway network, with the M60 ring road and the M6 creating links between Manchester and some of the UK’s most important business hubs, including Birmingham and London. Plans are also in place to expand the city’s transport system, most notably the extensions to Manchester’s tram
system in 2016, which will establish the tram network as the largest in the UK. The city’s breadth of attractions and host of new initiatives has made Manchester an increasingly attractive place to live and competition for accommodation amongst those who desire to reside in the city centre has become substantially greater. The rise in demand has led to landlords announcing gross rental yields of 7.6%, the fourth highest in the UK according to a study carried out by HSBC this year.
Rental rates are predicted to grow by 36% by 2018
Location Map
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DISTANCE TO MAJOR UK CITIES
Bolton -13.9 miles (18 mins) Leeds - 50.1 miles (54 mins) Sheffield - 40.5 miles (1hr 12 mins) Birmingham - 82 miles (1hr 32 mins) London - 195 miles (2hrs 33 mins)
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LOCATIONS 1. Lowry Outlet Mall - 5 minute walk 2. Media City - 7 minute walk 3. Old Trafford - 15 minute walk 4. Manchester City Centre - 30 minute walk 5. Piccadilly Station - 35 minute walk 6. Manchester Airport - 22 minute drive or 20 minute train journey
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X1 Salford Quays Phase Two
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Frequently Asked questions Am I buying as Freehold or Leasehold? 999 years leasehold What is the address of the site? Elmira Way, Salford, Manchester, M5 3LL Are there tenants already in place? No. This is a new-build development which will be furnished to the highest of standards and will be ready to accept residents in Jan 2015 What are the projected annual returns on this project? There is a rental assurance in place for the first five years of 6% NET Can I receive finance on this development? There is currently no finance offered by the developer.
When is my rental income paid? This is paid quarterly in arrears direct into your bank account from completion Is there a management company already in place? Yes, the designated management company will be X1 Lettings, who will block manage and let the building Can I resell my unit? Yes, you can sell at any time after exchange of contract Are there any restrictions if I want to sell? No, X1 Salford Quays, Phase Two is a residential development so you are free to sell your unit on the open market as a buy-to-let apartment
Purchase Process •
Once your unit(s) has been selected with the help of your property consultant, please complete the reservation agreement and return along with a copy of your passport, recent utility bill and your deposit. The bank transfer details will be found on the reservation agreement.
• You are required to pay a reservation deposit. • Once your Property Consultant has confirmed they have received your paperwork, you will need to instruct a solicitor. Your consultant will be on hand to help you with this should you require assistance,
as we have a selection of recommended solicitors who are experienced in handling buy-to-let investment transactions. • Your solicitor will advise you of the paperwork they will require from you. Please return this promptly to reduce the risk of delays. • Your first installment payment will be made when you exchange contracts. Your solicitor will inform you when they have the date for exchange providing you with an adequate notice period, at the time of exchange you will also be required to sign and return your contracts. If
you are unable to do this due to your location your solicitor will be able to act as your Power of Attorney. Please note that your solicitor may charge a fee for this service. • After you have exchanged contracts you will receive a welcome letter from the developer which will detail the future service they will provide and include all contact details. • Your final payment will be due when construction completes.
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Reservation form and deposit of ÂŁ5,000
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Solicitor instructed, legals and sales pack sent out
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25% of balance on exchange of contracts within 28 days
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Remaining balance due on completion of building
Why invest with KKI? We are a long-standing company, founded in 1997 (a LTD company since 2004) with an excellent reputation. We have a large experienced team of over 30 staff, with a collective property experience of more than 200 years. Knight Knox International sell over 1,000 properties a year, with a total value of over £100 million. We have exclusive market-leading products that are hand-picked proven investments that sell in volume.
“ I am very happy with my purchase and have just signed up with X1 for the continued management of the properties. I would certainly be interested in other properties in the future. ”
We are one of very few companies to experience ‘full market cycles’ Knight Knox International has a partner network of over 200 offices worldwide. We sell property in over 50 countries worldwide and have local expertise on the ground in every location. We cater to all types of clients, from first-time buyers to large investors, helping build property portfolios and establish good income returns. Most of all, our clients buy with us again and again because we’re honest, experienced, professional and market the best opportunities.
Mr. R. Thompson, Buyer
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X1 Developments is an investment company based in the heart of Liverpool, which meets the needs of UK and overseas investors looking for an organisation that offers exceptionally high quality investments, which have been selected and overseen by individuals who have unrivalled knowledge, experience and background in the product, market sector and location. Not only does X1 Developments offer an exciting portfolio of real estate investments, but it also offers a follow-through service via its sister company X1 Lettings, which carries the same high level of expertise in order to manage and protect our clients long term investments. X1 Developments is THE Company for anyone looking to invest in Liverpool & throughout the U.K, with a track record of past developments which speaks for itself. Download the new X1 Developments app from the Apple Store for further details on all X1 projects, including images, movies, panoramas and detailed descriptions.
COMING SOON!
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6% assured NET yield for 5 years
8% assured NET yield for 5 years
*Only available through the Apple store
Market Leaders in Worldwide Property Investment www.knightknox.com
+44 (0)161 772 1370
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