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Investing in UK Real Estate through Crowdfunding Website

uk real estate crowdfunding

If you have a desire to invest in UK real estate, you do not need to book a flight in hassle and spend time only on a bit long journey. It is also not a concern for investing if you do not have funds and cannot find a bank to lend. Nowadays, it is even simpler to invest in UK real estate. You can simply surf the internet and look for the best real estate crowdfunding website that well suit you. Crowdfunding is basically a solution to your problem in which you can raise the equity from hundreds of your contacts and perfect strangers who each investing a very small amount in the business or property, without the need of raising funds from a bank or wealthy investors.

There are already so many real estate crowdfunding websites up and running in the UK. www.propertypartner.co, www.propertycrowd.com, and www.apieceoflondon.co.uk are three examples of crowdfunding websites that can help you to invest in real estate only at a click of a button. These real estate crowdfundings pull investors together to purchase property assets, which they can control, rent or sell with full day to day of the investment. Needless to say, the crowdfundings even offer a chance to invest in different types of property in favor of the investors.

Let us say, Property Partner (www.propertypartner.co) deal exclusively with residential real estate. It offers buy-to-let schemes of residential real estate in which you can put your money in as little as £50 ($80). Maybe for the sake of safety, this crowdfunding site is inviting early registration ahead of a formal launch of the web page. So, the platform is only accessible for members or those who seriously want to join in the Property Partner membership.

Property Crowd (www.propertycrowd.com) and A Piece of London (www.apieceoflondon.co.uk) also have such similar schemes as Property Partner. Property Crowd offers you a chance to invest in student accommodation in the city of Southampton. Whereas, A Piece of London will give you such a slice of a buy-to-let development as if you invest at least £5,000 ($8,000) of your money.
Both Property Crowd and A Piece Of London are currently offering the chance to invest in the Battersea Power Station development, in Wembley City, in Tooting (in South-west London) and in Fulham Riverside. Those area have strong prospects for rental as well as capital growth, hence, they are mostly desirable places to invest in.

Though crowdfunding websites offers you all those simplicity of buying your own property, you may also concern that you may have less visibility and control over what happens to your money. Also, it should be taken into consideration that most platforms operate on an all or nothing basis. In case that the target is not reached then the money is not transferred accordingly, for the platforms make money from either taking a cut of the funds raised or charging a flat fee.

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Investing in Homes of Multiple Occupations (HMOs) in the UK

student hmo hot spot

Well, now you are considering where to make a real estate investment in the UK.  Perhaps you have difficulties in deciding which area profitable for you. Before looking for the hot spots, you have to firstly determine the type of property you would like to invest in, whether it is residential, industrial, office, or retail property.

Perhaps, you have a preference to invest in residential properties in the UK. Residential properties generally generate the most stable returns since people always need a place to live, regardless of economic climate. Therefore, residential occupancy is likely continuing high. Residential property can be a single family house or homes of multiple occupations (HMOs) like condominium, flat, apartment, etc. Definitely, you need to concern on which residential property suits you best so that you can put the prices up when you are ready to re-sell or rent the properties out.

Since homes of multiple occupations (HMOs) is a house or flat which is occupied by three or more tenants who do not live as a single family and where they share one or more basic amenities like a bathroom, toilet, or cooking facilities, HMOs seem to be a great idea to yield great returns of your investment. If you invest in HMOs, you can create such accommodation for either student, young professional, or both. For this specific purpose, hence, it is worth to consider an ideal location for your property.

No matter what you are going to use with your HMOs, it is important to put the aspects of accessibility and transportation into the very first consideration.  People commonly have preference to live in a place which is close to local amenities and accessible either by land, water, or air transportation.

Let’s say you plan to operate your HMOs for a student accommodation. It is very essential to find a location which is close to a university and in an area that students commonly live. Additionally, it is worth to consider any aspects that could be the points of attraction for students such as sporting, shopping, culture and nightlife facilities, etc. Alternatively, if you plan to make use of your HMOs for young professionals as your tenants, then the location of your HMOs should be near transport links, business parks and local amenities.

Moreover, in considering the hot spots for your HMOs in the UK, it is imperative to take into account the way you are going to handle the property. It is also a contributing factor to where you will be looking. If you prefer to take care of your property on your own, it is suggestible to choose HMOs which are close to place in which you live because it is much more accessible. Somehow, if you look at those that give you a freedom of location, it is better to hire a HMO company to manage your property. But, indeed it will cost you a percentage of your profit.

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Basic Guides to Invest in Retail Property in the UK

retail property investment guide

Many investors who are looking for diversification may put real estate investment into consideration. For those who would like to focus more on income than capital growth, retail property might be worth considering because they can be very high yield. The retail sector is mostly sensitive to economic climate. Somehow, many inexperienced investors might have difficulties in investing in retail property for the very first time. Some basic guides below may worth you to deal with it.

1. Location:

As with any property investment, the most crucial aspect you have to firstly bear in mind before investing in retail property is about the location of the property itself. Capital cities and neighborhood shopping areas such as Birmingham, Manchester, and other spots in the UK are likely profitable. Additionally, location indeed plays a critical role in the retailer’s success. Areas with large amounts of foot traffic are most desirable because they can directly attract and guide pedestrians to come in to the retailer’s shops. Accordingly, your tenants will be happier as their business performs better and yields decent returns. Therefore, it is indeed make senses to find a retail property that is easily accessible and convenient for shoppers to get to.

2. Funding:

Indeed, you need good financial support in order that your investment could be managed in the desired way. You can take out a bank loan to fund your investment. Yet, banks are usually only prepared to lend up to 60 or 65?per cent of the value of a retail premises.

3. Leases:

you need to have an excellent understanding of leases or rent agreement. They set out the rent and any incentives, such as rent-free periods or help with fit-outs you would provide for your tenants. They are important to protect you against lost income in case that your tenants go out of business in the meantime. Thus, it is sensible to have the leases run for at least five years. It is also worth to ensure that your tenants have supplied a bank guarantee of at least six months’ rent. Additionally, there are disclosures which you need to carefully check because they specifically include other details of the agreement such as who pays for marketing promotions, outgoings electricity, etc.

4. Tenant:

It is sensible to know as much as you can about your tenants including what their occupancy cost and sales are, and their ability to pay the rent in order to secure your property investment. If you have a reliable tenant on a lease with plenty of the term remaining, then you can minimize the risks.
Overall, investing in retail property is just similar to investing in other property types. There are plenty of opportunities for you to begin even with only a small unit. Also, it is advisable to keep your tenants’ business outperforms under the contractual period in order that the rents can be extended and beneficial for both you and your tenants.

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3 Top Noted REITs in the UK

uk reits

Real estate investment trusts (REITs) have performed so much better over a long haul. They are closely linked to the performance of the UK economy that is seemingly going from strength to strength. As we know, REITs are an efficient way of investing in real estate. There is no doubt that with the assistance of REITs, you do not need to go out and buy properties on your own.

Even if you live outside the UK, you are still able to invest in UK real estate and monitor your investment through REITs. REITs allow you to work less that you have the time to enjoy your leisure or do other important businesses. Roughly speaking, you just need to be a member of certain REITs, and REITs will take the hassle out of real estate investing. They will deal with all of administrative management as well as tangible issues of real estate investment to earn profits for shareholders.

Since there are so many REITs available in UK, you may prefer to choose one that is reliable and can generate good income for your investment. Here are 3 top noted REITs in the UK.

1.    LAND SECURITIES (LSE: LAND)

Land Securities is the largest commercial property company in the UK and a member of the FTSE 100. It was originally founded in 1944, and became a REIT in 2007. This trust is heavily weighted in London since London property has been a preferential haven for the world’s wealthy, particularly the Russian and Arab wealthy.  It currently manages more than 26 million sq ft of property, including office, shopping centers, and residential properties.  Due to this variety of properties that meets the needs of business and communities, Land Securities seems to be a major boost for the portfolio of the shareholders.

2.    BRITISH LAND (LSE: BLND)

British Land is an FTSE 100 company heavily weighted in London. This trust focuses on UK retail and London offices, 64% of its properties are located in London and the South East. In its management strategy, British Land focuses on right places, customer orientation, capital efficiency, and expert people. Right places means that this trust invests in places that are potential for lasting demand from occupiers and investors. To generate sustainable demand, the British Land management is customer-oriented.

It maintains close relationships with the customers in order to generate high-quality, secure cash flows. Thus, it operates in capital efficiency by maintaining the balance of equity and debt to finance the business and enhance shareholder returns. To do it, British Land management consists of small size of expert team that is more agile and responsible to deliver significant value to investors. Also, it partners with Broadgate Estates, a company that has provided property management services and occupier engagement for over the past 25 years in the UK.

3.    HAMMERSON (LSE: HMSO)

Hammerson is a more diversified choice since it owns properties that scattered across the UK. In addition, it also owns a considerable number of properties in Germany, Spain, and France. It focuses on prime regional shopping centres, convenient retail parks and premium designer outlet villages. It strategically maximises occupancy and footfall at the properties as well as income growth from retail properties and development pipeline so that it can deliver industry leading shareholder returns.

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