Has the commercial property boom of recent years been fueled by fund managers? This is the question being asked, has the demand for higher yielding investment funds driven property fund investment managers to pay too much for secondary locations and shorter leases? Now that the bubble has burst and the heard have turned, are there opportunities for investors to make the higher returns that inflated this asset bubble?
Questions like these are causing investors to question the motives of some I.F.A’s and fund managers who profit from the cash going into a fund more than the performance of the funds they recommend or manage.
March 8, 2010
High yielding investment funds?
February 27, 2010
What is the future for HIP’s home information packs?
The shadow housing minister is thought to be planning to scrap HIP’s home information packs as soon as possible after coming to power. Many estate agents, property traders and developers see the removal of the HIP’s as an integral part of a housing market recovery.
The EPC or energy performance certificate is thought to be safe and has proved more popular with home buyers and home sellers. The energy certificate does make sellers give more thought to their properties green credentials. For over ten years since the HIP home information pack first became a proposal of the Labor manifesto it has been surrounded by controversy. The first signs of the HIP’s replacement are just starting to gather credibility. It looks like the “exchange ready packs” of ERP’s will be the replacement for the HIP’s, this pack is aimed purely at speeding up completion after exchange. These pack would reduce the average exchange time period by well over half, they will include local authority searches, drainage water searches, a property information questionnaire completed by the seller and answers to standard questions from the buyer’s solicitor. The biggest advantage of these changes is that these packs will not need to be provided for the first 30days of marketing which will be a vast improvement from the HIP’s which are required for day one.
The other good news for the housing market is that a conservative government has pledged to scrap stamp duty on properties that sell below £250.00.
February 24, 2010
Opportunities in Commercial property Investment
A recent report has outlined the situation of empty shops in various city centres. Wolverhampton, Bradford, and Sheffield were named among places where there is more than the normal concern. The 2008 / 2009 recession may be one factor to blame as part of the reason for shop closures/ empty shops, but it has also to be considered what affect our shopping patterns that we all now undertake may have on the shops that are now closed.
In Peterborough a fairly large modern enclosed shopping centre known as Queensgate exists, and has been in existence for some years and therefore the long term presence of such can be considered on the area. Queensgate is not only close to the city centre but is also just outside the train station with connections to the North / South / Lincolnshire / the Anglia Region and the Midlands. Queensgate also houses the bus station providing bus services locally, and apart from a good road network in and around Peterborough the city is also close to the A1 Road providing major road access to Peterborough. Queensgate and shopping centres like it and the recession is bound to have an effect on surrounding properties / shops, and part of the solution may be action as outlined for Stoke on Trent below.
The Stoke on Trent area suffered in the second half of the 20th century with the decline of the potteries and coal mining but more recently has seen regeneration, including small but nevertheless valuable property improvements and development schemes including developing empty shops into projects to fit local demands as for example a hairdressing salon with flats being provided above. These projects thus providing much wanted rented accommodation, and providing a mixed use asset for landlords and tenants. No doubt this kind of approach does and can help everyone in many a village, town and city that have vacant and run- down buildings and makes full use of valuable space.
Now with building developments generally in Britain progressing at a less hectic pace than say in 2006/7 it may be a good time to grab the opportunity to carry out work on empty shops/ pubs etc in a village, town, or city near to you to utilise the space by providing flats and commercial premises to meet present day needs. You may be interested in a developing a site/ building in your locality and local people are probably best to choose the right kind of development for site concerned for the area they know well.
February 21, 2010
Investors making money in property development as commercial property yields are compressed
Private investors are looking to various property backed investments such as speculative mezzanine funding to give them greater returns and higher yields. Many believe that the commercial property market has hit the bottom as investors return to sensible attitudes to the balance of risk and return.
The recent gains in capital values for commercial property are attributed to the market simple reflecting more sensible levels of yield buying from various private investors and instructional commercial property investors.
February 20, 2010
Heavy hitters in buy-to-let return to the ring
Some of the so called heavy hitters including ex-boxer Andreas Panayiotou are starting their first major residential property purchases for years. Many of the “clever players” sold out in late 2006 early 2007 when they grew increasingly concerned with the very low yields being achieved from both commercial and residential property investments.
There is always a demand for buy to let as many use this investment vehicle to provide a passive income for their retirement. Interestingly there is increasing speculation that some large instructional investors are looking to residential investment property to supply them with higher yielding investments.
February 18, 2010
The future of commercial property investment in 2010
Recent data suggests that the market in leases for office space outside of the capital will improve in 2010. Many within the property sector believe this is mainly because companies are not as motivated to cut costs or close offices. This has lead to a less fluid supply of suitable rental offices and in turn should have a positive upward effect of commercial property yields for this sector.
February 16, 2010
Buy to let in 2010 looks to improve as property investors put their money back into the property market
Buy to let lending increased in the final quarter of last year as property investors look to buy houses at the bottom of the property market cycle. Property Investors many not believe that the market has hit the bottom, but many believe that even if we have not hit the bottom yet, we are not far away. The best bargains are always achieved prior to a housing market recovery, and as the more seasoned and experienced property investors are back in contact with estate agents it show that the sentiment is improving.
The UK housing market is driven by sentiment and as with the boom years, as soon as people see property as a sure bet it is a sure thing that property prices will rise. It might not be a steady curve but it will be an upward curve in time.
February 12, 2010
Better yields for property investors but the rate of property price growth slows
Some early data released has shown that the growth in UK property prices is still on the increase but the rate of growth has slowed. If these first figures are to be believed many professionals in the property sector will be sighing a breath of relief. No one knows more that unsustainable property price growth can damage both the market and their careers than property professionals. Many in the industry did enjoy the good times during the boom years but have been forced to cut their cloth as market conditions have tightened.
February 10, 2010
February 6, 2010
High returns from investment in property?
Some of the “big hitters” have been assembling their war chests ready to do battle in an acquisition spree. A number of funds have been assembled to create high returns on investment in various property development and investment deals.
The interesting part of many deals is that the banks are happy to top up or near match fund the investment of their private investors. Considering “the banks never get it wrong”, well at least until recent times, the private investors should be able to enjoy a sensible level of yield on their investment.
Now the world of property development is waking from its slumbers after being starved of its life blood cash and bank lending. Many returning to the market are determined to work hard and make sure they manage their property and mange their property developments to maximize returns.