Wed, May 03, 2023 8:59AM • 51:53
SUMMARY KEYWORDS
property, uk, market, investment, big, regeneration, london, clients, growth, work, area, call, buy, portfolio, capital, cities, number, invest, point, plan
SPEAKERS
Ryan Rahnavard, Ritesh Patel
At this stage. I’m going to pass over to Ritesh he is going to go through nine reasons why you should invest in the UK.
Ritesh Patel
One Great Property Idea
Masterclass
How Property Investors with Little Time Can Invest in New Build and Off Plan Property using a Regeneration Strategy and Where Exactly to Invest in 2022.
THIS WEDNESDAY @
1230pm London GMT
Masterclass Begins
TUESDAY
1230pm GMT London
Hi, guys. Thank you, Ryan. See, I look. I mean, I could sit here and talk about 100 reasons why to invest in the UK. But I’m sure we haven’t all got time to sift through all of them. And look, I understand that as an international investor or an expat, you know, your core investment strategy may be focused around your home country, the host country where you live providing is viable based on it. Its economic status, political status, legal status, you know, all these sorts of things and if property as an investment is even why about that, but after that, when looking for what I call an alternative country to move into in terms of property investment, the UK in most people’s eyes comes pretty high up there. Now, it’s not always because, you know, paper, you know, it gives the biggest returns, because, you know, you know, oddly, they’re fairly mature markets. So the UK is not about Big ups and downs in, you know, volatility, that that is not what the UK is, in fact, the UK is all about steady medium to long term. And here’s I want to take you through nine reasons where international investors are, you know, so pulled towards and gravitating towards the UK property market, and always have done for these sorts of reasons. So number one strong and stable property market, we’ve got a long history, like I said, you know, we’re not emerging, you know, we’re, we’ve got history, we are a market, which has been growing consistently for over a sustainable period of time. And that security of knowing that and seeing that track record does give investors a lot of confidence. So yeah, being strong and sustainable and having that history is really important. Number two, high demand for rental properties. So you know, the two main ways you’re going to make money from property in the UK is capital growth, which is where I always see the big money. But then also, you’ve got the rental side of things, you know, because you need to rent that property out to create the income. So the UK has a growing population, chronic shortage of housing supply, which is fundamentally what this is all about too many people not enough property, which leads to high rental demand. And there is a mixed culture of buying and renting. So it’s not just that everyone buys everyone would love to buy, but they can’t always afford to buy so what they do is rent. So that keeps that rental demand high whilst you’re holding the property over the long term. Diverse investment opportunities that the UK offers a wide range of property types and locations and many different strategies that you can utilise depending on your position and your investment goals. And in terms of location, you have different cities that could commute commute to towns, urban centres, you know, rural locations. And this allows you to be able to take your pick on where we feel or where you feel the market is right for you to invest. You know, whilst we’re focused on urbanised regions or walk closer to the city centres, the opportunity is not limited just to those and we can talk about that based on your goals. Yeah, number four world class cities for world class in London, Manchester and Birmingham. And I can say these very quickly because when you when when I speak to clients speak to investors and they asked me Okay, Ritesh, you know, where do I invest? These three come to the top of my straightaway, because they are world class cities, they have all the fundamentals, their best required, you’ve got, you know, their business hubs, tourism culture, ITN technology, which is huge, you know, growing all the time, you know, when UK is in the leader in FinTech, biotech AI, which is a whole new conversation and just changing the world for all of us. And that change just get bigger. And the UK plays a big part in AI and the growth of it. So we attract people from all over the world to live and work it. So that demand I said supply and demand is what it’s all about. So that demand point, which has always been there just keeps growing because we’re in the cities are in the right sectors. Number five, transparent legal system. Look, you know, for me, transparency is everything. Because, you know, if you can’t legally see the ownership of your property, you know, from a legal perspective is very safe. And the contract reads everything that you need to know about, then I simply would not invest, okay. And the UK has that. So whether you’re buying, selling, you know, whatever you’re doing, you know, everything is legally formed pipe in a contract and our legal system shows you all of that. So very strong and tight legal system. Okay. Very well exchange rates. It’s a it’s very, because what we always find here in the UK is often the times when people you guys, you know, maybe hold your money in a different currency will find the market very attractive and naturally isn’t always as destructive for us as the pound weakens. But the massive opportunity, you know, when the pound drops in value, because I think everyone in the long term knows it will return back towards its highs again at some point but while it is where it isn’t your currency can buy you a lot more. Not only can you benefit from the long term growth of the asset, but when the currency strength is again you’re sort of making money from the currency side of things as well. So the the weaker nature of the pound, you know right now is certainly a global attraction for UK property number seven education employment opportunities, but the country is renowned for education issues, some of the biggest and strongest universities in the world. Big job market, again attracting students and workers, both domestically but internationally to some of the most highly skilled individuals globally, both student wise, you know, I work why is that talent pool is here. It’s in the UK. Okay. So again, this creates a stronger economy for the future. It creates high rental demand, you know, you’ve got your university towns and major. You’ve got your university towns and big cities, major universities for five. So it’s not just London anymore. Yeah, it’s more than London. So you’ve got all this opportunity, which helps to grow the market, the demand and infrastructure developments. The UK government is constantly plummeting money, putting money into the infrastructure into this country, whether it’s new transport lines, you know, new commercial buildings, it’s all about growing. And to give you an example, I mean, with property transport plays a big part, you know, and one of the latest transport projects, which just got completed was the Queen Elizabeth line, some might know as a Crossrail locally here, which was a high speed train line, which connected the east of London, through the centre of London across to the west. So that meant people’s journey time, some of the outer zones of London into big employment centres, like Canary Wharf or these areas became, you know, 10 minutes, 15 minutes, 20 minutes from being 45 minutes an hour, things like that change areas and change the demand for property. And you have to be able to read this know it bind to the right areas and benefit from the uplifted creates. So lots of infrastructure, but I love the transport sort of stuff that’s going on the latest line, the pipeline, which is under development right now, which we’ll talk about a little bit more, is the HS two, which is a high speed line, which is going to take people from London to Birmingham in 45 minutes. Yeah. So that’s connecting everyone in Birmingham to the capital here in London in 45 minutes that that sort of that transport link will change the value of property in burning, and we’ll change the red to burning. And that’s just phase one. Yeah, so infrastructure development, very important. Long term capital growth. And I said at that stop of when I started this, that no rental income and capital growth is where you make the money. UK properties historically have always shown strong capital growth, providing you hold it for the medium to long term, which again, makes it a very popular choice for investors in which individuals are looking to create wealth, because it’s that capital growth, which can eventually put you in a position where you can recycle some equity, substantial equity out of the property you’ve invested in, and then to either reinvest it into another UK property, or potentially even reinvest it in another country, your home country, but the UK allows you to be able to make that through the capital growth. And that comes down to the lack of supply versus demand, which the problem has been going on here for for a long time. And it doesn’t seem like it’s going to fix itself very soon. So good news for people who are investing in property, probably not the greatest use of people who are trying to buy their first property because prices still keep going up. Yeah. So capital growth,
Ryan Rahnavard
thanks, British, I was this, you know, nine reason there’s, there’s many more that I mean, this section can go on for at least another 10 that I can think off the top of my head. But overall, I think the UK is one of those things where it’s unique in that each different part can give you a different thing to your portfolio. So each different section and this, this is what I’m going to talk about sort of the market intelligence of everything, and why the UK is attractive to a lot of people outside of the UK to invest in, apart from you know, the nine that they said is that when we look at this, this is what we call our ripple effect pentagon, this is what we use to explain to clients, what the different sort of parts of the UK will potentially give you from an investment return what you can expect from it, when they present you an opportunity, for example, in London, zone one and two, I’ll be very clear in saying to you this is not about rental yields. This is about buying this portfolio, having it and keeping it in there for the next 10 years, 15 years, because it’s going to double treble in price over that over that timeline. You know, three to five gives you something different community town gives you something different major cities, something totally different major towns, something completely different from everything else. So each area and each segment, you get a different sort of flavour, add it to that portfolio. Okay. But one of the key factors that we have to follow regardless of sort of which area we say to you that this is where you want to invest right now is looking at the property fundamentals. This pretty much makes or breaks in investment. And what I mean by makes or breaks, I don’t mean if it’s going to double in value straightaway, as soon as you buy it or anything like that, it’s about long term sustainability of the investment, staying rented, prices gradually going up, and so on and so forth. What we are not interested in is getting into investments that quickly shoot up very early on, and then either sit stagnant, or take a massive drop. What we want our clients to do is to have a balanced portfolio that is constantly growing throughout every single market. And it is also maintaining a good healthy cash flow, because it is going to be something that is going to supplement their income in the short term. But in the long run, it is going to hopefully replace their income and give them their pension plan. So I’m going to say it in in the way that it rhymes best, which is shops, schools, transport links, major employers and major investment. But the reality is what’s important is major investment in the area, major employment employment or major employers in the area. And that’s not specifically in the area, it could be within a particular commute. A short commute, should I say to a major employment hub, for example, if you buy in London, let’s say in wallich, we know that’s a great area, whilst there is no immediate employer straight on your doorstep. What makes it on your doorstep is the Elizabeth line, as as Renee said, that can get you to Canary Wharf, one of the biggest financial centres in the UK, if not the world, within a couple of minutes, so that’s a big pool for that area. Second thing transport links. So third thing transport links, transport links massively important, because the UK being so small reliance on car is not huge. In the UK, it’s more reliance on the public transport system. How quickly can people commute from point A to B? No, no, if you guys have picked up on the news, we’ve got a lot, you know, the whole getting to net zero and the co2 emissions and so on and so forth, there is a big push to try and reduce the amount of cars on the streets. So to replace that the government has spent a lot of money on infrastructure for the transport side, adding new rail links, more buses to the street, you know, bikes, all this sort of stuff to get away from the reliance on cars. Schools, big importance for schools is mainly down to owner occupiers, but also your young family tenants be near a good school. Because the UK works on a catchment basis. You cannot just go and put your school in any school that you want. You can you know, the easiest way to get into the school that you want your kids to get into is to get a property near that school because there’s a catchment area. Is it a mile research? I can’t remember exactly is it
Ritesh Patel
depends it depends. But it’s sort of a mile
Ryan Rahnavard
within a mile and you fit within that. And a final thing, obviously shops to give that lifestyle to your tenants down the line. And when it comes to selling it on if it gets sold on to an owner occupier, ideally, you want it to be closer to a shot. The last two, slightly less important, whilst still important. First three, massively important in in the investment doing well from both capital appreciation and rental. Okay,
Ritesh Patel
I think before you move on, Ryan, if I could just jump in on this slide. So, you know, yeah, the major investment major employment transport links have the highest impact on property prices for stock. But what you’ll just find is schools and shops tend to be around those areas which have these three anyway. So if they’re not, it is it’s a big investment in an area and there’s some major employers moving in there are good schools opening up the shops all over Colorado. So the schools and shops tend to gravitate towards these three anyway. Yeah. Yeah.
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