Tues, May 02, 2023 8:59PM • 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
Ryan Rahnavard
All right, guys.
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
Ryan Rahnavard
Welcome to our webinar. This is the first one of a series that we are going to run for the Middle East. This is dedicated to the Middle East. Thank you for joining us today. So today we’ve got myself Ryan, one of the Associate Directors at GLAAD at Cloud fish have been in the business for the past 1112 years. And we’ve got Ritesh he’s the director, he’s the Sales Director at GLAD fish has been in the business for about 12 or 13 years.
Ryan Rahnavard
Together, we’ve got a long standing history in the business and property overall, we’ve done a number of property transactions ourself and helped a number of clients build their portfolios over the past few years. So today, we’re just going to run you through a bit of an introduction of the business, the UK and where you can invest. So little bit about glad fish. Glad fish started. Back in 2004. We’re in our 19th year, at the moment, we’ve sold over 1.3 billion pounds worth of London and UK property sold over 4000 clients 40% of which are overseas investors spread across Asia and the Middle East team of 35. In London, Lincoln, Israel, Philippines and Singapore, we are in the process of also opening an office in Dubai. Brett is an award winning author, and speaker and TV presenter. He’s the guy who started our business. Originally from Australia, he’s got the best selling book at three plus one plan with over 2000 articles and hundreds of hours of videos. I won’t mention his Tiktok. But he has recently been fascinated with posting videos on Tiktok and YouTube and Twitter over 1200 50 properties under management at the moment, we are a full service Property Group. So what does that mean for you guys, as investors essentially glad fish offers a beginning to end service, we do the research, we do all the progression work, we find the tenants and let the property out. And we manage the whole entire process. And at the end of the sort of the investment we can also sell the investment on for you. So we will do all the research work behind the areas behind the developers to get involved with and behind the the actual investment itself. We negotiate the price for you clients. We deal with all the educational side of things from your side to get you to fully understand the UK market property investment in general in the UK, how it works, the legalities, the taxation and so on and so forth. Well put together a whole strategy based on our years of experience. And we’ll help you implement that strategy. We’ll also progress. By progressing I mean dealing with your solicitors, your brokers to get your financing the whole sort of tax structuring and stuff and helping you go down the right avenues to open your bank accounts and so on and so forth. Letting sites quite simple finding a tenant managing the property itself as well getting the furniture in there managing with the day to day maintenance side of things, all the compliance regulations that have to be in place for your property portfolio, we’ll deal with the entire thing to make it completely hassle free as much as possible we can for you, our main aim is to make your investment hassle free, because you are based overseas, you are not here in the UK, you need someone you can trust the team you can trust to build this portfolio for you. We’ll deal with the management side of things. So that’s renewing the tenancies increasing the rents within market condition, reselling the investment as and when he wants to some of them obviously you will sell at a game. Others sometimes, you know, if the property investment doesn’t quite work out and you just need to exit again, we’re there to help out with the with the entire process, although the second part doesn’t really happen with property because all it ultimately comes down to is holding it long enough for the value to go to a particular level that you’re comfortable with selling now, we’ll deal with the review of the portfolio on a on a yearly basis as well make sure it’s it’s sort of the tax of the most tax efficient it can be make sure you’ve got the best financing on the portfolio. And you know, the overall investment is running in the direction that you wanted to run. Look, you guys have two options. When it comes to property investment in the UK, you can either do it yourself. Doing it yourself obviously requires a lot of time spent from your side potentially travelling to the UK itself to view properties, build relationships with various different agents, contractors and so on and so forth. It’s quite difficult for a lot of people, most people will find that a bit tedious, time consuming, as well as massive sort of capital will be depleted towards actually setting up the whole structure yourself but So you’ve got the delegation system, which is what a lot of our clients in the overseas market do is they delegate to us what they want done, or they want it to be delivered, and we will deliver it for them. Effectively, it’s the more hassle free or an armchair investor, we’ve got the team already set up, we’ve got the maintenance guy already in place, we’ve got the agents in place to rent the property out, we’ve got the whole entire back system set up for your accounting side of things, and so on and so forth to collect all the information that is required to give to your accountant, we won’t do the accounting work for you, there’ll be a separate company that does the accounting stuff, they’re completely separate Blackfish, they will deal with the accounting side, but it will just become seamless, because we will collect all the sort of invoices, make the payments, and so on and so forth to make it completely hassle free. So you guys have a choice to make, really which way you want to go on that. And we’ll talk more about that if you do continue the relationship with some booking a meeting. Now, before I go any further, what I want to sort of bring to everyone’s attention at this stage is that this initial webinar that we run in is going to be a short webinar, as kind of an introduction into us as a business and the whole wider market. If you wanted to take it a step further and get a lot more information behind it, we are running one on one sessions via zoom, as well as face to face in the Middle East. Depending on which region you are from, we will be visiting Dubai, Qatar, Kuwait, and other regions as well. To have face to face meetings with people who are interested in taking this taking a serious step in building their alternative portfolio in the UK. Okay, now, what’s the difference between us and your standard state agent, your standard real estate agent or state agent should I call her you know, I know in the Middle East, you guys call them real estate agent. So your real estate agency your you know, your knight Frank’s JLL as your your sort of your local guy who predominantly mainly deals with the local market. So they will deal with a with a specific location. So for example, if you speak with an agent that’s based in Wembley, majority of their staff will be focused around Wembley and why Wembley is good, and why you should always continue to invest in Wembley and so on and so forth. They represent the seller, their interest is to get the best price possible for the seller, they have access to limited stock. Yep. And are often very limited in terms of their skill set and what they can actually deliver for you as an investor, in terms of they’re very good at knowing the property itself. And knowing how the lessons work in the in the immediate market. But you try and push that towards what does it mean in a wider scale of an investment format, though, you’ll find they’ll struggle a little bit because they simply don’t need to have that level of knowledge in order for their business to work, versus us as a buyer’s agent. What we sort of pride ourselves on is knowing what the investment game is all about how to get the best potential returns for our clients, how to keep the portfolio diversified between capital growth in yield, and so on and so forth. And alternative investment, a wide range of different investments up and down the country, not focusing on one particular area, but focusing on the whole entire country as a whole, where to go, what point what sort of property to do, when to refinance, when to sell, when to re mortgage what tax structure to put under, we come with a much broader range of knowledge, as well as a broader range of opportunity for you guys. Now. We have a full portfolio management team set up so we will fully keep an eye on the portfolio, which properties are doing well which aren’t doing great, which areas haven’t quite delivered what we expected to which areas we need to sell, which areas we need to continue to invest in, what are the new and up and coming areas we need to go into. And what we like to do is to stay ahead of the curve, get into an area before it becomes what we call a hotspot for people to invest in. 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
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.
Ryan Rahnavard
Right. So this section is is effectively. I mean, we’ve titled it as the one simple reason why people fail in UK property. And the reason why we put that is because you find in the market, a lot of people like to catch the best time to buy property. So we have put together a property cycle, which is very simple for everyone to understand. The UK market quite simply goes up, stagnant, goes back up again. Yep. This is essentially what it has done over the past 60 years of tracking the data. Now what it actually does is it starts the market starts increasing it overshoots then there’s a correction and stagnation, slight correction again before another boom, upwards. This is what we call your supply and demand swing. Okay. Essentially what we want you to gather for In this section is that ultimately, it doesn’t matter which point of the cycle you buy in, because it is very difficult to catch that no one has a crystal ball. And if we had it would all be multibillionaires. This cycle will show you how to plan a long term portfolio at which point to purchase what type of property, whether it’s a long term or a short term Off Plan, at which point to sell, and at which point to keep holding on to your portfolio. And ultimately, if you go into property investment in the UK, with a long term vision, and know fully in your head, in your mind that I am going to go through this cycle, I will have either bought at the top or in the middle or at the bottom, but ultimately, I’m going to go through this full cycle, my property will Gries it will stagnate, it may it may it will drop a little bit in value and it will rise again. So if you bought at the peak of the market, there is a correction there will be a stagnation and an increase again, all within generally a seven to 10 year timeline. And if you bought at the bottom, you will see an increase, you will then see a stagnation and a drop. And then an increase again. Yep, and in the middle ultimately going into a rise. But we can never be 100% sure that we are going which points of the exact cycle we’re in we can guess roughly where we are at any particular point. For example, everyone, everyone, everyone with their cats, dogs and uncle, they turned around and said straight as as COVID Hit the UK property market is going to fall flat on its face. What happened is it saw the biggest growth it has seen for about five or six years, property prices pretty much almost doubled across the board in certain areas. Some went up 20%, someone at 40%, and so on and so forth. So, it is very difficult to try and predict the market. The key thing is to understand it, know how to navigate it know how to plan and know to look for the long run, not the short term wins. Right, the type of property you invest in, we are very big on this. We have an understanding of the UK and what the UK wants to sort of rent and buy. Because we’ve been doing this for a very long time. And what we’ve learned over the years, is there are two segments in the market that you don’t really want to heavily focus on. Number one, we call it poor people and rich people. So what we mean by poor people is not actually poor people is the lower end of the market, the market, which you’ve got a lot of social housing, and so on and so forth. If you’re buying a standard vanilla buy to lead that that’s you’ve just bought one single apartment to rent out to someone and you’ve you’ve mortgaged it, and so on and so forth. On the lower end of the market, you can hit some particular problems unless there’s some sort of guarantees and so on and so forth, which Ritesh will speak about later on in this webinar. The other side of the spectrum is there is the higher end of the market, what we call your dinner portfolio type properties, your big site is on one London type properties, which will get you to the absolute sort of, you know, in Kensington High Street, Kensington top floor overlooking, you know, God knows what, and you’ve paid 567 million pound for it, what you find is these two markets swing massively in good times and bad times of the market. So in the good times of the market, the sort of the top end of the market does pretty well in the bad times in the market, it does really, really bad. In the good times of the market, the poor end of the market, there’s okay in the bad times of the market, a lot of void periods and a lot of headaches. What we like to do is to stick in the middle of the Pope of the spectrum, which is what we call your every person home, ones in two bedroom apartments, following the property fundamentals that I spoke about earlier in good areas, major cities with employers, major cities with universities, London, Manchester, Birmingham, these sort of locations where you’ve got a massive movement of people and 75 80% of the market likes to rent and buy their own first property there. Okay, anything you want to add in this section? Ritesh No,
Ritesh Patel
it’s I agree 100% That’s where you know when you think about it as well in the future or renting your property because most people in this country fall in that middle bracket, the everyday person, good job, you know, good income. If you’ve got something which is attracted to abundance, you’re always going to find it easier to sell and rent and you can sell it for more because simply the demand
Ryan Rahnavard
right this one choice guarantees growth in your property regeneration region. interation is a massive thing. Regeneration actually started just before the London Olympics on a big scale. It’s always been around in the UK, but not not quite the extent to which the UK took it on. From that point on. And a quick fun fact, most cities that take a major sporting event, whether it’s an Olympic or a World Cup, or anything, most cities straight off the back of the event go into a recession, the UK remains to be one of the only ones that didn’t, and London in particular, didn’t actually go into recession. And the number one reason for that, and I in my opinion, the only reason for that is because we continued the regeneration of not just London, but the other major cities across the UK. So what regeneration essentially is is is the government as well as the private sector going into areas which are very nicely located. So some examples Brixton, in London, Hackney, in London, these are zone one and zone two areas, massively sort of rundown, high crime and so on and so forth, Stratford, where the Olympic was, you know, these areas on, you know, went great areas, the UK Government, and the private sector invested billions and billions of pounds into this area to improve the infrastructure, the schooling, the education, the shops, the transport links to the area, and employers started moving into these areas. I mentioned Canary Wharf earlier, Canary Wharf around sort of 15 years ago, was an absolute dump. There was nothing to see not nowhere to go. It was actually I think, historically, it’s where it used to be sort of a dumping ground. That’s where all rubbish went to get back. And now, it’s where all the money goes to get back. But yeah, so ultimately, that’s, that’s what regeneration gives you. Regeneration gives you exponential growth in the market, you’ve got two different types of growth, you’ve got normal natural organic market growth, and you have regeneration, growth, regeneration, growth is taking an undervalued land, adding value to it, and having it grow almost twice as much as normal market growth. Guys, once again, if you have any questions about anything that I’m going through, please do not be shy, send your questions in, I’m happy to answer them and researchers also happy to answer them. So give you a bit of an example of regeneration. This is a picture of Wembley before and after our office actually used to be in Wembley. And the picture on the left hand side is a representation. It’s actually a picture taken. I think, on Brett’s phone, he took this picture from our office, which showed you sort of what it used to look like. The one on the right is a CGI image. I didn’t have time to update the picture. But if you actually look at Wembley now it pretty much looks like this CGI Now apart from the three sort of towers that are currently under construction by Wembley Stadium, but essentially, Wembley, you know, completely transformed from what it was to what it is today, they put in a new outlet centre, obviously, you’ve got the Wembley Arena for the concerts, you’ve got student residence, you’ve got what we call as a PRs scheme, which is a private rental scheme. A pension fund from the US called Long Lonestar bought about 4000 apartments in the area to keep for themselves to rent out as part of their pension offering to their clients in the UK.
Ritesh Patel
I think the great thing about these sorts of schemes is they’ve made a lot of small parks and kept a lot of green land around it, because what the focus is not just to build concrete jungles, but to actually create something which is sustainable, where people want to live placemaking and you know, real fuel really feels a part of sort of home and one of the things COVID done was made people realise and appreciate where they live in their surroundings a lot more. So you know, having things like that in the vicinity of their apartments means that people stay there a lot longer. So for you as an investor, it just simply means you’re not having the tenant turnaround as quickly as you would if it was a somewhere which is not as desirable or someone couldn’t quite see as their long term home.
Ryan Rahnavard
It’s beyond just the aesthetic look of the area. It’s represented in the numbers as well. And I’m going through the data from two of our sort of biggest success stories if you like of regeneration, Royal arsenal, Riverside and Kidbrooke village Kidbrooke village used to be a site called varier estates. varier estates a bit of history is notorious estates in the in East London was a notorious estate in East London. It’s where all the East End gangsters came from. A lot of thieves robbers and so on and so forth. Barclay Holmes, who’s one of the biggest developers in the UK, purchased the entire slab, knocked everything down and rebuilt it back on. We’ve got involved right at the early stages As of this regeneration project, which is back in 2010, clients bought a one bedroom unit for circa 162,000 pounds. In today’s market, they’re selling around about the sort of 450. Mark. Okay, similar situation with royal arsenal, Riverside, again, another area massively deprived, right on the river front, clients back in 2010, bought one bedroom apartments around 187,000 pounds. And by 2018, there are 432. Today, they’re pushing over half a million. So it is clearly seen in the numbers, it has been repeated, not just on these three areas that I’ve said, a number of other areas, and a number of other areas to come as well. Regeneration returns a huge amount in capital growth. For every single one of my investors who have had the vision to get in two areas at very early stages. It’s a big reason
Ritesh Patel
why you’re not big, is a key point of distinction is what created that exponential growth. It wasn’t just one point, there were three things that came together. So number one, it was reading the market up to a certain degree of which sort of area do I think I should be focused on based on data and fundamentals and, and certainly London, you know, as we came out the global financial crisis or during it was definitely where the first focus point was, because London always recovers imbalances first, so the London market performed, but then you sort of pair that together when the regeneration that was coming in from the developer buying the land, and, you know, building out the land and increasing prices as they went through the build programmes. So the developers pricing strategy and working on a large scheme, like that played a big part. And then finally, it was the region, money being pumped in by the government, and private businesses, new transport lines, and all these sorts of things. So it’s a combination of three different factors bring them together, which are creating that versus just buying a property in the secondary market. And just hoping the market does it all for you, you know, so that’s a, that’s quite an important note, because there’s about 1520 developments that we could put in front of you, which follow very similar stories, numbers a little bit different depending on where, when, but they will, there’s a formula that that you know, and it works, and which is what I want to really, I suppose get out there to you guys. Okay,
Ryan Rahnavard
so new build Off Plan property, why Off Plan, essentially, offering gives you three main factors, you lock in at the lowest price possible, you leverage your capital to the absolute maximum, and essentially gives you effortless growth over the long run. Coupling regeneration with Off Plan works brilliant together, because you’re able to get in and leverage your money. By leveraging your money. I mean, you know, you pick up an apartment, let’s say the ones that we’re talking about 180 or 200,000 pounds, the clients that got involved in 2000, and then they put down 10% of their own capital and locked in that property price. So essentially cost them 18,000 pounds, plus other fees and stuff would have been a little bit more made a stage payment a year down the line at 10%. Again, not putting a huge amount of capital straightaway leveraging the long term growth. And the reason why we say long term growth is because what developers do is as the project comes closer and closer to completion, the price keeps increasing. So they keep increasing their prices, because it’s becoming to to a stage where people can actually see, okay, this is now developing into an area. So you are going to benefit by getting in as early as you possibly can to get into that stage. By getting that off plan you get in at the lowest possible price points of the project. And if you couple that with the regeneration area that’s at the beginning, you’re getting into the absolute bottom price of that area for a new build project. Okay. And the efforts growth comes through developers pricing strategy through each stage as they go on. Now off plan you can we can go into a long conversation we can actually have a full one hour webinar about Off Plan and the ins and outs and how it works. But again, this is why I said at the beginning, this is an introduction to some concepts. It’s an introduction to get used to some ideas. If you are interested in taking this further in getting more information behind it than booking a time with either ISO for a Zoom meeting or as I said we are travelling to the Middle East over the coming months we can set up a face to face one on one meeting to go through a lot of these things in a lot more detail. Right lettings and management is a truck property management which is our lettings arm of the business. They will deal with the letting side we will rent any property across See UK any of our properties, we’ve got over 12,005 1250 properties on the management, we handle things like a local agent would, we sort of, we can manage, you can have as manage literally everything, pay your bills, you know, deal with your letters, and so on and so forth and just transfer the money to straight away, okay? We guarantee to find you a tenant, within six weeks, or even less at some time, any of the properties that you purchase through us. And the reason why we do that is because we have we give that guarantee is because we do a lot of the sort of the work prior to the property actually going on to the market. So about two or three weeks, before you’re about to complete, we will have started soft marketing the property itself. Okay. Right, I’m gonna pass over to Ritesh. Now, who’s going to give you three ideas that you can think about, and potentially booking a meeting with us to discuss in more detail down the line as potential opportunities that will work for you.
Ritesh Patel
So London, obviously, everything in the UK starts with the London property markets. No simple reason. It’s a world class city with all the best fundamentals. So with London, you’ve got two sides to it, you’ve got the more established high end, centralised London stuff, which is not necessarily what we are sort of promoting as our core strategy. However, if you’ve got the capital, and you know, you want to sort of nullify all the regeneration risk, and you just want to come to the sort of zone area, you’ve got the capital, then that is something we can absolutely help with. Because we have access pretty much to all the top developers or developers, we have a relationship there. And there is a portfolio of options that I can weekend as a company provide for you. What I do love though, is more the regeneration side which a lot of this presentation has been about. So an example of this is Plumstead, which is southeast London. It’s a site being developed by Barclay Holmes, one of the biggest developers in the country, walking distance to Queen Elizabeth Line station, there’s a lot of inward money coming in from the local councillor government, because what they want to do is now really changed the face of this area as they work their way down the river. So you know what we’re getting into this project and the first phase of a 10 year development plan. So when we talk about the whole Off Plan strategy of getting early a ride that wave up, this is pretty much Well, I would say one of the better ones to get involved in because it takes absolutely every box area perspective, the time that you’re getting involved in it, which first and all the money being pumped in from the generation Manchester and Birmingham. Now, if you feel that London is a market where you know with the capital required, not really where you want to get involved and you want to sort of salary be working money harder in a big city, but just go with a ribbon effect to the next big city or cities. Then you’ve got Manchester Birmingham, Manchester look 80% of footsie 100 companies have a presence in Manchester, let’s put it into perspective that some of the biggest companies in the world they’re in Manchester again, that’s why we call it a world class city globally renowned. Okay. You’ve got a huge tech presence there now as well. Google, Amazon, IBM, if you didn’t know this, after London Manchester has got the second is the second biggest tech hub in this country. Okay, a lot of startups there a lot of money being pumped into that which is important because that’s the future. Okay. Again, in terms of investment going into infrastructure, the airport itself has spent about 1 billion pounds that actually created what we call airport city, which is commercial properties, super sheds, you know, around that airport where big international businesses from Asia opening up buying them outs getting stuck in there so it’s not so much to live in this is to do business, okay. But on top of that, Manchester’s International Airport pretty much connects you to whichever country very similar to the London airports. Okay. Birmingham. So look at second biggest city, they call it I would say yes, but I would say Manchester pretty much there as well. They’ll both argue who it is but again, heading towards well city status. The government’s have, you know, had the northern powerhouse plan Birmingham is maybe not the North in everyone else’s eyes, but it certainly is that bridge between the South and the North. They had the big city plan, which is all about expanding the core of the city by 25%, where they created four to five new regions which effectively become part of zone one Birmingham now. So that’s all been ongoing and carrying on they’ve already started seeing the benefits of that lots of new development have Putting their HS two, we spoke about transport at the beginning of this webinar, while after the Queen Elizabeth line, this is the next big thing in the UK high speed train line connecting everyone from London to Birmingham, phase one is signed off and is being built right now. So that’s not speculative, it’s happening, can there be delays in it? Well, it’s a huge project, maybe, but who cares, it’s happening. And that is going to start being built into the market prices are built into the market slowly, slowly as that project comes up. So now is the time for anyone who wants to benefit from that. Big companies, HSBC, PwC Deutsche Goldman Sachs last year, open their offices up once again, big tech community. So again, very similar, all these important ingredients which are which are the make which the makeup of a good city, which, you know, it has to have a property to perform a very much in place. So, you know, this is another city, if you want to these obviously called direct property investments, you know, that we’re talking about, which are all about helping you to build a portfolio the conventional way, if your situation however, is a little bit different. And your focus is not so much a portfolio or growth, but you’ve got a large, large pool of capital there, which means you just want to invest it into something and take immediate cash returns, then, you know, we have alternative investments, things like managed HMOs assisted living, which are not about the growth, there’s still no commercial properties. So based on their rental incomes growing they will grow but that’s the idea behind those investments is for you just to get an immediate income and more about the now versus you know, the big portfolio. So alternative investments are there although we’ve got a lot through our core stuff, if there is a once we speak to you and listen to you know, what your situation is what you want to do, I call it let’s get personal and really, you know, personalise things for you on a one to one level, then we can recommend these different sorts of projects. We’re not limited to any one sort I suppose is what I’m trying to say. Okay, good. So the message is really that you know, if you haven’t got the time haven’t got the experience haven’t got the relationships and if you’re not living in this country then for me you don’t you know doing it yourself is not I should I should I not you just don’t do it because the risk you take on, on investing in another country yourself without having the Power Team, the support team, for me is just far too big. Okay? So, if you haven’t got that, but want to find a way to do it, let’s book some time out, you know, the numbers here you can email us at support at clownfish talk comm you can email me directly with sesh alrighty, es H ACK glad fish.com or Ryan, Ry n at GLAD fish.com to email us directly, calendars are there, you know, have you wanted to book a time in, we want to, let’s get that initial conversation, get some more depth behind where you are what you want to do. Like I said, we’re also going to be doing some trips out in the UAE reach Singapore, so Asia as well. Middle East, so we’re going to be looking at Dubai, Qatar, Kuwait and potentially more but you know, for that, let’s get to you know, let’s get to a stage where we’ve had a one to one composition, then we can book it and then take things from there.
Ryan Rahnavard
Just before you go on I want to quickly open up a cash flow for clients to have a quick look because one of the big parts of our investments company and the reason why clients do love working with us as a business is because we put everything together in an easy to read format for clients. So essentially what we like to do is put everything up for clients so they get a full understanding of what they are buying. So initially we’ll give you the obviously all the brochures so you know you got the glitz and the glamour glamour side of things, give you an investment club which gives you all the information behind the area and stuff. And finally and most importantly for me is we give everyone one of these which is called our cash flow spreadsheet. This is our cash flow spreadsheet got various different tabs so plots tab what was to shows all the various different plots that we have at the moment. And then you’ve got your cash flow UK and cash flow international specifically for international clients we can change the currency to the currency of your choice. So you can read it in more local currency format. Essentially what this cash flow is designed to do is for you to get a full understanding of your financial commitment. How much it will cost you to buy the place which is this section over here? How much to set it up to get it rented out, which is this section over here, all the provisions you need to set aside for it’s all the rainy day money funds and stuff. And your returns on your investment. So how much rents you can expect to get in, sorry, over here, what it will cost you if you take out a mortgage, and so on and so forth any annual costs, and what the bottom line profit is left at the end of the year, and what the statistics and the return or the opportunity is at that time. Okay, obviously, I’ve just opened up a random sort of investment that we have. We also calculate things such as your growth and so on and so forth. It is probably by far one of the most comprehensive worksheets out there in the property world when it comes to property investment. Because we go into a lot of details, we don’t really like our clients coming up with any surprises, acquisition costs, for me is one of the most important thing because you need to know what it’s going to cost you. And over here as well, to the same token, what it’s actually going to return you which is sometime a lot more important for a lot of people is what am I actually going to get out of this for the money that I’m putting in, and it gives you a clearer picture gets rid of all the noise, all the opinions that people have, because let’s be honest, they’re all just opinions. What matters is the bottom line numbers and figures, and that wins most of the time. So we’ve put it all in a cash flow spreadsheet for clients. So they fully know what they get into. And I think this is a great tool. But look, guys, thank you very much for your time. We will be running a couple more of these webinars at least every month. But I encourage you as Rich said to book in a time with us to have an in depth one on one conversation, sort of no strings attached. We’ll give you as much information as we possibly can for you to make an informed, well informed decision.
