Issue number 3, Q3 2020
content Q3 Review Q4 Preview
4
Market Movement Over Q3
12
Diversifying your portfolio 104
Hong Kong vs UK
42 Property Feature
2
54
Construction Updates
68
Developments on Offer Q4
82
110
Investing through a recession
Meet Nichola Harrison
116 3
4
5
Letter from the CEO
W
ow, ok Q3 review time. I
....
write this as I am flying
over a city called Kirkuk, a couple of hundred km north of Baghdad, Iraq on the way home from Dubai. At first glance, and from this high up the area looks arid and empty. At a closer glance, you’ll see the makings of quite a prominent city. And then closer still, smaller towns and villages surrounding it. This must feed the big city with trade, employees, crops and livestock. Interesting comparison afoot.
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This summertime quarter has been as
is a vast under-supply of quality
busy as we had predicted and culminated
rental property across the UK, and
in the Thirlmere Deacon London Team
there are still certain areas where
visiting the Dubai team and getting a
you get the right mix of socio-
taste of working from Business Bay. I
economic growth and available
can’t sit here and pretend that I knew
land to build on that allows
what was going to happen this quarter
an investor to secure a great,
other than that it would be busy. For
well priced asset and enjoy a
example, I had expected the majority
handsome, minimum hassle yield.
of our business, interest and sales this quarter to come from the big cities,
Whilst delving down this “due
such as Manchester and Birmingham, as
diligence rabbit hole” over the
deals started to reappear in the market.
last year or so, I have come across
However, what we saw, was in fact a
many interesting success stories
vindication of our earlier efforts and
for “Satellite Cities and Tertiary
belief in sourcing options in smaller
Towns”. The one I have regaled
towns and cities that offer the right mix
the most recently is that of a very
of price point and rental demand for our
prominent football pundit (no
investors. Allowing them to secure lower
names mentioned – I’m trying to
ticket assets with higher returns.
get him to agree to an interview) who himself had a decent on-
8
Among other wins, selling out our
pitch career back in the 80’s &
Wolverhampton and Redditch projects
90’s but nothing like the vast
this quarter (242 apartments between
sums top football players make
them) was a big milestone for us as
these days. This shrewd young
a company as well as our developer
visionary, however, decided during
partners as it proves that hundreds
his playing days to buy something
of individual investors (along with
in the region of 35 properties in
their independent network of wives,
Swindon – 30 years ago!! With
husbands, accountants, IFAs, agents,
the average property price today
social distanced mates at the pub etc)
in Swindon at £242,153, that’s a
have all done their own due diligence
passive portfolio that would be
and research and have come to the
worth in the region of £8.5million
same conclusion that we have - there
today. Not to mention the 30 9
Here’s to Q4! As the last quarter has proven,
Sir John Templeton proved it
it’s particularly difficult in these
best when attributing much
times to predict what the next
of his investment success to
3 months has in store. All I can
“maintaining an elevated mood,
assure you of is that we will
avoiding anxiety and staying
continue to offer innovative and
disciplined!”
creative buy to let products that
So let’s all take a leaf out of Sir
will help those that want to sure
John’s book, stay positive and
up and secure their financial
focus on growth and prosperity.
freedom. Stay safe guys and keep thinking Uncertainty always breeds
critically.
years of rent this quixotic goal-setter (and
opportunity. During this last
goal scorer) will have achieved over the
couple of years, we’ve been
Best regards,
life of his portfolio.
perfecting our groundbreaking 10
Stuart Williams
year residential rental assurance
10
In short, buying low and selling high has
packages, and in these uncertain
CEO and Founder,
been the generic investment mantra, but I
times, they are proving extremely
Thirlmere Deacon LLP
suggest buying low and never selling at all
popular. Q4 will see the launch of
+44 203 950 7891
if you are looking at securing a long term
2 new sites on that now tried and
stuart@thirlmeredeacon.com
future of financial freedom.
tested model. 11
Market Movement Over Q3 12
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JUNE As the UK property market got back into full swing after reopening officially on 13th May, investors were seen to be preparing to take advantage of the opportunities found in an uncertain market. 14
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Property investors ‘building war chests’ to expand portfolios
Newbuild market bouncing back quicker than second-hand market
T
B
he nation’s property investors are increasingly looking to
grow their cash reserves and
uyer demand for new-build property has bounced back in
the six weeks since the
expand their portfolios; with a
resumption of the housing market
new report saying 30% of
according to research from
investors are taking out a
Zoopla. The portal says this
remortgage with the aim of
recovery is a continuation of the
building a ‘war chest’ to purchase
upsurge in demand recorded at
further properties.
the start of 2020 – following the December General Election – when the property market recorded its strongest start to a new year since 2016.
Source: propertyinvestortoday
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Source: estateagenttoday
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JULY The chancellor announced a stamp duty holiday on the 8th July and activity in the UK property rocketed. Investors also recognised that areas outside London offered more better potential for capial growth and stronger rental increases. 18
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Stamp duty holiday: How will it work?
T
he chancellor has announced a temporary holiday on stamp duty
on the first ÂŁ500,000 of all property sales in England and Northern Ireland. The tax threshold has been temporarily raised until next March to boost the property market and help buyers struggling because of the coronavirus crisis. The changes have come in with immediate effect.
Source: bbc
London rents dip but other areas flourish
t
he typical London rent has dipped by 1.7% to ÂŁ1,583 per month.
Other areas have fared better, as the North West saw rents increase by 6.6% between June 2019 and 2020.
Source: propertywire
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It’s gone bonkers’: buy-to-let inquiries boom as landlords swoop on stamp duty break
B
uy-to-let landlords have swooped into the property
market to take advantage of the stamp duty tax giveaway. In a temporary move intended to stimulate the property market in the wake of coronavirus, Chancellor Rishi Sunak last week announced that buyers in England and Northern Ireland would pay no stamp duty on the first ÂŁ500,000 of their purchases until March 31. Landlords and others purchasing a second home still pay 3pc of the entire value of the property in additional tax, but the tax break means that their bills could fall by as much as half.
Source: telegraph 22
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O
ne week after the Chancellor announced a stamp duty
holiday on the purchase of property in England, Skipton International has reported a sharp increase in its buy-to-let mortgage enquiries.
Expat buyto-let enquiries surge following stamp duty changes
Source: financialreporter
Buy-tolet landlords abandoning London for better returns in the North
L
ondon-based buy-to-let landlords are increasingly heading to the
North West in search of better returns, research from Hamptons International has found. A third (34%) of Londonbased investors buying new property in the past year bought in the Midlands and North, up from just 14% in 2015 and 4% in 2010.
Source: propertywire
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AUGUST Through August the market remained buoyant, investors and overseas buyers notably active - particuarly buyers from Hong Kong following the announcement of the Hong Kong BN(O) Visa towards the end of July. Overseas investors, aware of the tax changes coming in at the end of March 2021, were reported to be buying in order to avoid the increased charges on property purchases. 26
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D
emand for property in northern England from
Hong Kong buyers is surging as the Chinese squeeze on the city intensifies. People from Hong Kong have long bought property in Britain as investors, concentrated in London. Now, agents report that many are buying for their families in northern England, in a quest for value for money.
Source: telegraph 28
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T
he middle of a major economic crisis should be the
worst time to buy property – yet demand is booming.
Source: telegraph 30
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Top universities for buyto-let revealed
W
ith the academic year set to get underway,
thousands of students are busily moving into flats and rented homes in towns and cities around the UK, which is good news for landlords, many of which were concerned about the potential impact of the coronavirus pandemic. Landlords can earn attractive returns when buying property near a university, but only if they are shrewd about where they purchase.
Source: landlordtoday
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SEP TEM BER Reports through September pointed to continued high levels of activity and with several months worth of data now accumulated post-lockdown prices were recorded to be on the rise, though at a relatively steady rate, increasing by a few percent. 34
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Rightmove says demand is rocketing in every region of the UK
D
ata from Rightmove shows that demand is up 61 per
cent compared to the same period last year – and the portal attributes much of this to the stamp duty holiday. The top performing regions are the South East and East of England, each up by more than 70 per cent, but across all regions the percentage growth in demand is outstripping the growth in new supply.
Source: estateagenttoday
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House prices at all-time high, says Nationwide
H
ouse prices continued their post-lockdown
recovery in August, notching up their highest monthly rise in more than 16 years, says the Nationwide. Prices rose by 2% last month.
Source: bbc 38
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Feature Report 40
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The
world economy has been affected
by the pandemic and as we begin to realise the economic ramifications of coronavirus and investors across the globe are seeking assets which have historically proven resilient in the face of sudden downturns.
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UK property has demonstrated its ability to recover quickly and deliver stable returns time and time again making it particularly appealing. Not only has Hong Kong suffered from the pandemic, but the political shift and new laws have also had an impact on the economy and property prices have been negatively affected with a reported drop of 30% in some cases. 44
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Hong Kong Property Property prices dropping can
Average property prices in Hong
often be a trigger for investors
Kong are also incredibly high at
who hope to buy at the bottom of
around $1.2 million, almost twice
the market. For this to work there
that of London which is reported
needs to be a strong indication of
to be around $650,000. Gross
economic recovery in the not too
rental yields when comparing
distant future.
London to Hong Kong are also in the UK’s favour with average
Mainland Chinese buyers have
yields almost double in the UK
been reportedly scouring the
capital, outside of London yields
Hong Kong commercial property
can quadruple those available in
market for bargains. These
Hong Kong.
mainland buyers have reportedly accounted for 98% of all inbound
The news has widely reported
investments in 2020.
that Hong Kong buyers have been purchasing property in the
There are many reasons for
UK, some with the intention of
hesitancy by those considering
living others as an investment.
Hong Kong property as an
A surge in activity followed the
investment asset; there are
UK government’s announcement
real concerns that the local
that they would offer citizenship
property market bubble might
options to about 3 million people
burst and that the policies being
which is roughly 40% of Hong
put in place are being deemed
Kong’s population.
potentially inflammatory. 46
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UK Property Despite Covid-19 since
prices will see an increase of 2%
the UK property market
in 2020, before dropping back
officially reopened on 13th
to 1% growth over 2021, 3% in
May 2020 activity has soared
2022, 4% in 2023 and 3% in 2024.
and property price growth is
Cumulatively that is equivalent to
gaining momentum. Whilst
a 14% rise from the start of 2020
transaction levels will be less
to the end of 2024.
than in previous years due to the market being effectively
With this being based on average
closed for several months
growth across the entirety of the
earlier in the year the outlook
UK you can guarantee that certain
is positive.
locations will offer far greater potential for price growth over
The consensus amongst
the same period.
experts remains to be that any disruption to the property market will be short-lived and that we will see rapid recovery. Global real estate agent Knight Frank recently released updated forecasts for the coming years; across the UK they predict that
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HK or UK? Whilst an element of risk is welcome to investors as it often means the climate is right to secure a property at a discount and see a greater return on investment over time there has to be a steady balance of risk and stability. Hong Kong is undergoing fundamental changes that could see a shift in its popularity as a business haven which could have a long term negative impact on the property market. Whilst the huge influx of Chinese investment in 2020 does bode well Hong Kong remains to be in unchartered waters politically and has a long road to economic recovery ahead due to the global pandemic and
and a majority government in place, the UK economy began to show exciting promise, even with the threat of a no-deal Brexit. Many feel that the UK is, across many sectors including property, picking up where it left off before lockdown. The UK and in particular the UK property market is known to be a safe haven, historically proving to be resilient and so it continues to be a target for investors from all over the world. The key to investment success in 2020 and beyond is where and what you buy.
political unrest that began in 2019; the risk is deemed too great by many investors. Though the UK economy has also been affected by the global pandemic the underlying resilience and policies being put in place are supporting recovery. At the beginning of 2020, in the wake of a strong win by the conservative party in December 2019 50
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Where to invest in UK property in 2020 Since lockdown in the UK,
There has also been
impressive
there has been an increasing
an increasing trend for
returns the
trend for relocation to
companies to move their
UK is an
tertiary locations. Areas
places of work and operations
incredibly
close enough to a main city
to smaller cities and towns
interesting
or business hub yet slightly
due to affordability. The
place for
removed from the bustle and
areas that have proved most
investors to
importantly more affordable
successful for this are those
consider in
as places to live are seeing a
which are exceptionally well
2020.
huge boost in popularity.
connected by road, rail, sea and air. Liverpool boasts
In a trend that looks very
an array of idyllic transport
much set to stay, many are
connections which is a key
reassessing their homes and
reason for its continued
looking for options that still
economic growth.
offer an easy commute. For Birmingham areas such as
With so many exciting
Wolverhampton and Redditch
locations to consider that
and for Manchester nearby
offer real potential for capital
city Preston.
growth which generating
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Property Feature 54
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Preston A
round 30 miles north of Manchester and a similar distance from
Liverpool, located on the north bank of the River Ribble, is the city of Preston, Lancashire’s administrative centre which has a population of around 130,000. Well-connected and with exciting regeneration underway and in the pipeline, Preston is a city that investors should be actively taking an interest in.
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in sizeable sums of public and
national average. Real Estate
private investment into the city.
Agent Savills most recently set
Large scale urban improvement
out forecasts which predicted a
projects are underway, business
cumulative 24.1% price growth for
is thriving and employment rates
property in the North West region
have soared.
over the next 5 years. Whilst they highlighted the prices might drop
Investor interest is on the rise as
in 2020 the region is set to see
the savvy purchasers acknowledge
8.5% price growth in 2021 with
the potential for capital growth
9.0% price growth predicted for
and supported by a growing
2022, 7.0% in 2023 and 6.0% in
economy the increasing rental
2024.
demand and strong yields.
Property prices
Why Preston?
The North West of England has long been recognised as an area that is ideal for investment, property prices have steadily risen with the forecasts for future growth positive yet measured. Yields are strong and in most
Determined not to become an
jobs – Preston has seen its
industrial casualty, through a
parts over double what can be
economy take off in recent years.
combination of local government
achieved in many locations in the
This turnaround was cemented in
policy, a focus on ‘buying local’
South East region.
2018 when a study by accountancy
and notably in September 2013, a
firm PriceWaterhouseCoopers
City Deal was signed that put in
According to Zoopla, property
(PWC) listed Preston as the most
motion £434million of investment
prices have risen by 11.31% in
improved city in the UK. The
to expand transport infrastructure
the last 10 years and the average
positive economic outlook and
and create around 20,000 new
property value is almost half the
general optimism have resulted
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Rental yields Property located in central Preston has seen exponential increases in demand and as a result, impressive yields can now be achieved. In the central postcode areas, yields as high as 8.5% are being achieved. Across all Preston postcodes rental yields have grown by at least 5% in the past 5 years and the average yield for PR1, the city centre, is around 7%.
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Local economy There are several major employers in the area, perhaps the largest, BAE Systems is the UK’s principal military aircraft design, development and manufacturer has several bases in the vicinity. There are several manufacturers in and around Preston including Warburton’s and Fox’s biscuits and numerous public sector employers. Due to its position near to so many motorways Preston is also home to several freight and haulage companies. Of all of Lancashire’s 14 districts, Preston has the most business enterprises with over 5,000 individual registered businesses. The University of Central Lancashire (UCLan) is one of Preston’s major employers, employing around 4,300 staff and has a student body of around 33,000 – it is a major contributor to rental demand in and around the city.
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Preston Central Apartments Preston Central Apartments
The city centre’s amenities are
is a prestigious residential
within walking distance, major
development situated on the
employers such as the Preston
picturesque Winckley Square
City Council and the University
in the very heart of Preston.
of Central Lancashire are less
Planning permission was granted
than 1km/0.6miles away. The
in May 2020 to convert an office
apartments are just 400m, a short
into a luxury apartment building,
walk, away from Preston Railway
works are underway at the 70 unit
Station.
development and are expected to be completed in Q1 2022.
These highly energy-efficient, modern and secure apartments
The beautiful apartments will
are to be finished with quality
enjoy views over a leafy Georgian
fittings and stylish design. The
square which has recently been
developer has an exemplary track
the subject of a major restoration
record delivering projects on time
project. The scheme has returned
and to the highest standards -
the gardens to their former
apartments will come with a 10-
glory including improvements to
year warranty for works.
footpaths, planting, lighting and seating.
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Where to invest in 2020
With the stamp duty holiday in
regeneration, a growing economy,
place until March 2021, many
exciting predictions for capital
investors are seeking to take
growth and existing strong
advantage of purchasing or
rental demand – the potential
restructuring during this period.
for investment is huge. If you’re
Preston should absolutely be on
focusing your attention on the
investor radars when considering
North West region you should
where to invest in 2020.
be considering Preston. Preston Central Apartments in particular
Preston is a city which
present a compelling opportunity
offers inexpensive properties
for investors.
in locations undergoing 66
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Construction Updates 68
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Natex Student Residences
Block A
Block B
Decking has been complete to
Lots 1 – 9 of the
block A up to level 12.
steel frame have
The concrete floors have been
been erected and
completed to level 12 and the
decking loaded out.
back propping is being installed to
The decking
allow the steel frame to continue
continues to be
up to level 15.
delivered and
The under slab drainage is now
loaded out to suit
complete.
the steelworks, we
The ground floor slab is planned
currently have a good
to be poured next week.
stock on site ahead
Mast climbers and hoists are
of the steelwork
being erected.
installation.
The SFS has commenced on site
J-Safe edge
with head and base track installed
protection is being
up to level 5.
progressively
The site continues to work under
installed as the frame
social distancing measures which
progresses.
are working well 70
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Regent Plaza
On Site Status Evadx are progressing well and are on a programme to complete the first phase of the steelwork frame within 8 weeks of the start on site. The first phase comprises the erection of the beams and columns, together with the installation of the temporary edge protection, from grid
Work Completed
line 20, nearest to Oldfield
Helix Civils have now left the
grid line 9.
Road, to the stair core, on
site, having completed the
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foundations for Block B and
The temporary edge
cast 4No. pilecaps of the first
protection is being well
two bays of the Car Park.
coordinated with the beams,
Helix Contracting took over
as they are being lifted into
as the Principal Contractor
position. Evadx are also
and have been managing the
lifting packs of floor decking
site during the erection of
onto each level beams as
the steelwork, by Evadx, for
the frame progressed. This
Block B. Evadx have erected
will allow for the rapid
the steelwork frame, full
spreading of the decking
height from grid line 20 to
prior to welding of shear
14, and partially up to grid
studs, followed by pouring of
line 12.
concrete. 73
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The Soul
We are excited to update you of the ongoing works at the Soul site in Zanzibar. Four key elements have seen progress over the past month: 1. Substructure works for building N1 initiated 2. Building N3 staircase foundation completed 3. Building N3 reinforcement steel initiated 4. Building N2 superstructure material procured 80
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Developments on offer in Q4 82
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Regent Plaza
Located in Manchester, one of the UK’s largest economies and the most established investment location outside of London; Regent Plaza is an impressive residential development on the edge of the city centre. Demand for properties such as those at Regent Plaza is high; Manchester’s workforce is continuously growing with large numbers of professionals both from other UK locations and overseas relocating to the city year on year.
Prices from £179,959 and an assured 2 year 7% rental return.
The development, which will be built in a phased program of 5 unique blocks, is set to change the city’s skyline and will have resident benefits such as a 24-hour concierge, podium level gardens along with a residents lounge and gym.
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Wolverhampton Residences The Wolverhampton city centre residences have easily been one of our all-time most popular investment opportunities; investors have wisely seen the potential that a quality development in a prime, central location offers. Infrastructure is a key factor when predicting the future of an investment location; Wolverhampton’s transport connections to neighbouring Birmingham by rail, a journey which takes around 15 minutes, already make it a natural location for investors to consider. The arrival of high-speed rail will only boost this part of the midlands further. The plans for further regeneration and development are widespread across the city; Wolverhampton is a city which has room to grow and all the right foundations in place to support impressive capital gains for those who
Prices from ÂŁ115,000 and an 8% rental yield assured for 10 years.
invest at this crucial tipping point. 88
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Preston Central Apartments
Preston Central Apartments is a prestigious residential development situated on the picturesque Winckley Square in the very heart of Preston. Planning permission was granted
Prices form ÂŁ127,000 and an 8% rental yield assured for 10 years. 90
in May 2020 to convert an office into a luxury apartment building, works are underway at the 70 unit development and are expected to be completed in Q1 2022. 91
The Soul
Located on Zanzibar’s exotic and beautiful East Coast, known for its white sandy beaches, crystal clear sea and jungle backdrop, The Soul is a fully serviced residentialleisure facility; a destination for modern globetrotters seeking a luxury place to stay in a tropical, unspoilt setting. Designed to make the very most of the natural surrounds, The Soul is being developed by an experienced team who have an excellent track record specifically in creating luxury holiday resorts in Zanzibar and Tanzania. With a growing tourism sector and demand for holiday rooms and hotels increasing year on year, Zanzibar presents investors with
Prices from $44,500 with up to 20% Net yield return.
an exciting prospect. 92
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Natex Student Residences
The Natex student residence
The plan is to invest £1bn to
development is situated on the former
expand Liverpool’s Knowledge
National Express Coach Station in
Quarter is to create a 1.8million
the city centre of Liverpool and is a
sq ft science, health and
5 minute walk from the University
technology hub, attracting world
of Liverpool and Liverpool John
class companies and reinforcing
Moores University. Strong demand
Liverpool’s reputation as a global
expected from all students, especially
leader in medicine
postgraduates and overseas students.
and technology.
Natex offers a variety of
The expansion of the Knowledge
accommodation units, from cluster
Quarter is expected to be a
bedrooms to studios, offering choice
major draw for international
for postgraduate and older students,
students with The University of
at a variety of price points.
Liverpool already having over 27% international students. or
years. 96
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Liv Lodges
Taking a ‘staycation’ has
visiting the country each
never been more popular
year – now is an ideal time
and in increasing numbers,
to consider investing in a
investors are turning to
holiday property.
holiday property investment due to the potential for
Liv Lodges is a collection of
impressive rental returns.
holiday investment properties in idyllic locations across
The combination of the
Britain which are set to offer
growing trend for UK
investors incredible rental
residents choosing to visit
returns each year. holiday
other parts of the country on their holidays rather than
let tax breaks.
travel abroad and the steady rise in the number of tourists 100
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Investment .... Advice
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Diversifying your portfolio with John Tovell
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Why Diversify? I
genuinely wanted to open this article without regurgitating a cliché… But,
alas, where the merits of diversification become a topic, it’s unavoidable. Any savvy investor would be bonkers to have all of their eggs in one basket. Essentially, all investments carry risk… therefore the strategic investor will protect their capital and returns by investing in varied areas/asset classes/ commodities that would each react differently to the same event. Property should always form a part of a diverse and considered portfolio. In uncertain times, where some see their fortunes vanish on a dashboard before their eyes, there’s a lot to be said for tangible assets. Safe as houses as they say, good as gold. If the pandemic of 2020 has shown us anything, it’s that we all need a “Plan B”. People at the top of their trades; elite sportspeople, entrepreneurs, entertainers, even coffee shop owners
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and hairdressers have seen their
Many of my recent buyers have
industries stopped in their tracks
been diversifying of late, in so
this year… the importance of
much that they’ve previously
diversification has never been
been very hands on, “professional
more apparent. Peace of mind is
landlords” if you will, in their
afforded by not being reliant on
property endeavours. Strategies
one golden goose.
like Buy-Rent-Refinance, fixerupper projects, live in landlords,
Interest rates at the moment are
HMO managers etc.. all require
so low that we are effectively
attention, activity and effort
paying the bank to keep our
to maintain. At a time where
money and so any well timed and
it’s imperative to focus, these
well considered investment should
seasoned landlords increasingly
prove a wiser use of your hard
want to explore an option
earned cash.
whereby they put capital to great use and don’t lift a finger…
What I’ve noticed is that there are many an option within property investment to spread risk, play multiple markets and not be reliant on the success of one strategy/region/development. 108
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Who buys during a recession or the downturn market?
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W
hen the market hits a speed
is fearful; whilst everyone else is
bump investors tend to find the
watching and waiting this investor
resource to take advantage of any price
is active.
drops or other incentives on offer, this is especially true of the UK property
Driven by the market correction,
market where the impact is usually
the astute investor is actually
limited and economic recovery rapid.
shopping with confidence, grabbing all the best deals in key
Though the UK property market is
areas knowing that he is going to
largely deemed to be a safe haven
achieve exponential growth once
there are typically only certain types
the market returns.
of investors who are active during a recession or a market downturn.
Astute Investors
Institutional Investors The second type of investor
To my mind, there are 3 types of
known to be active in a market
investors, each with a distinctive
downturn or recession is the
attitude and approach toward the
Institutional Investor.
market.
....
An Institutional Investor is an The first, an Astute Investor. A very
entity which will pool money
sophisticated type of investor who
to buy real estate, this group
usually maximizes his returns by timing
includes banks, hedge funds
his purchase right using the most simple
and Real Estate Investment
process; buying low and selling high.
Trusts (REITs). These investors often play an important role in
In terms of property investment, they
economic recovery due to the
actually refinance rather than selling
sheer size of the purchases.
to have enough capital to buy, and they repeat this process again and again
Usually entering the marketplace
while expanding their portfolio. This
after the Astute Investors, seeking
process often happens during a market
greater stability and ensuring the
downturn, while the rest of the world
timing of the purchase is right.
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The Herd
Calculated risk
The third, The Herd, these
As an observer, given the amount
type of investors buy because
of data in the last century, you
everyone else is buying.
can predict the market direction just by watching this aspect of
Easily driven by the media,
the market and by focusing on
following the crowd,
whos doing what and when, whilst
and most of the time
also taking into consideration
buying without a strategy
other factors affecting the global
or thorough research.
economy which goes hand in hand
Unfortunately for this type
with the property market.
of investor they’re commonly known to make fundamental
Back to the question who buys
investment mistakes and can
during a recession or market
easily be sold to if they don’t
downturn? Looking at the pattern
know what they’re doing.
and behaviour of the above, I turn the question to you the reader,
Usually entering after the
tell me in your opinion, who
very best opportunities have
opens their chequebook to buy
been snagged by the more
during a recession?
savvy investors. Occasionally though they are sometimes lucky and their timing can haphazardly result in success. 114
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Meet our newest team member
Nichola Harrison // Senior Portfolio Manager // Dubai 116
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Nichola’s thoughts on....
Where would you advise investors to buy UK property? I think the UK is a great place to invest. If you’re considering a particular city
....
or a particular town, focus on things such as transport and connectivity to larger cities. How great are the nearby universities? What are the retention rates of students that are going to university and then choosing to stay in that city or town and find a job there? Also consider the urban regeneration and plans for local development or improvement to infrastructure. What is the real scope to invest your money there, is there potential for a strong rental yield and capital appreciation over time? 118
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What advice would you give to someone looking to start a property portfolio? My advice to someone looking to build their property portfolio would be to stay very openminded, right from the get-go, and to really try and build a diverse portfolio. Look at the kind of asset classes available to figure out what might suit you
....
better. So, are you looking for long term capital appreciation? Are you looking for a really strong rental yield? And try and build your portfolio around that. A final point, make sure that you have a really good exit route established, right from the very start.
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Thirlmere Deacon has a range of properties offering an 8% rental yield assurances for 10 years.
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Thirlmere Deacon London info@thirlmeredeacon.com + 44 (0) 2039507939 Lansdowne House, Berkeley Square, Mayfair, London, W1J 6ER
Thirlmere Deacon Dubai dubai@thirlmeredeacon.com +971 (0) 4 818 7277 Floor 30, Oberoi Hotel, Business Bay, Dubai, United Arab Emirates