China’s rich looking to invest in London property

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The team at Experience Invest have been keeping a careful eye on the turmoil in the Chinese stock market recently, and many now believe that wealthy Chinese citizens are looking to move money into the UK property market as way of keeping their cash safe. It’s not just London and the UK that’s set for an influx of Chinese investments, agents in Australia and Canada are also seeing signs already that Chinese cash is coming into their markets. According to the Guardian newspaper, there’s a huge pile of cash sitting in China that’s earmarked for property investment in the UK and beyond. High-net-worth individuals Sydney estate agent Michael Pallier told the Guardian that “A lot of high-net-worth individuals have already taken money out of the stock market because it was getting just too hot.” Problems with the market have been widely reported but the Chinese government have taken some recent steps that have helped stabilise the market. 20 per cent in the value of the market has been wiped off since the middle of June, and it’s widely believed that many wealthy investors have cashed out. While much of this money has been put into the Swiss franc, there’s a growing belief that investors see property in UK, Australia and Canada as the best place to put their money. Parking money Agents across the capital are recording interest from Chinese investors. Many of these individuals are looking at placing large sums into property. Figures as high as £150 million have been reported, and some commentators have suggested that a record high London market still looks cheap to many Chinese investors. However, there have been some issues with Chinese investors who didn’t pull out of the Shanghai stock market quickly enough. The Chinese authorities recently banned shareholders with large stakes in listed firms […]

Experience Invest

House price rise in the north-east

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The north-east of England is home to a rapidly rising housing market according to property website Rightmove. Experience Invest have recently seen the mainstream media compare rising prices in the north-east with a drop in prices in London’s Kensington and Chelsea. Prices in these two popular London boroughs fell by 7.2 per cent in July, while the north-east recorded its biggest month on month rise of house prices, at 2.1 per cent. Rightmove said that overall the monthly figures for July had been ‘volatile’. Annual figures Monthly fluctuations don’t impact the overall annual figure for London house prices where we’re seeing a rise of 7.8 per cent over the year to date. Many areas of the capital which were seen as unpopular are now catching up with their neighbours in the terms of house price gains. Areas such as Redbridge, Waltham Forest, Hillingdon and Merton, recorded gains of up to 15% over the year, while other popular London areas have seen some stagnation in the market. The average house price in England and Wales stands at £294,542 and Rightmove have observed that overall there has been a drop in the number of homes currently on the market. The biggest drop off in housing stock comes at the first time buyer level with a lack of two-bedroom flats and smaller homes. Homes at lowest level A recent report by RICS revealed that homes for sale where actually at their lowest level since records began in 1978. A lack of available housing stock sometimes triggers a cycle of individuals and families not moving through lack of choice, and this leads to even more scarcity of housing available on the market. Changes to the Bank of England policy on interest rates and recent announcements made by Mark Carney, could see many people who have […]

Experience Invest

Experience Invest celebrates more than 10 years in property investment

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Here at Experience Invest we’re celebrating a very special anniversary. We’ve been in business for more than ten years, we’re still going strong and growing, and we’re still serving clients with the same impartial advice that made our name in the first place. The UK property market has certainly seen a lot of changes over the last 10 years, but here at Experience Invest, we’ve ridden out changes in the sector to mark over ten years of giving completely independent, specialist advice to investors looking to profit from property. Founded in 2004 The company was formed in 2004, and is celebrating its eleventh year with an even higher profile and growing reputation as the leading light in both student property investment and care home investment. We also give advice on residential investments and help clients secure property at the best price. From a small company with few staff, we’ve grown to be one of the most respected companies in our field, and we now boasts a large and experienced team of experts. But what changes have we seen in the market in the last ten years? Our spokesperson explains: “Eleven years is a long time in any business, but property investment is all about the long term. We’re still dealing successfully with some of our very first customers, and we’re seeing them now enjoying great capital gains and healthy rental yield on deals which we advised on back in 2004, this is very rewarding. “That’s the great thing about our growing business, a lot of it is down to people trusting our advice and seeing great returns over time, once that happens they come back to us again, and make personal recommendations to other investors looking for advice.” “We’ve ridden out a few blips in the market over the last […]

Chinese investors looking to put more money into the London property market

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Experience Invest are always on top of the latest property investment news, this week we spotted a story in Property Wire about wealthy Chinese investors looking to put more money into the London property market. We often advise foreign investors on the best opportunities available in the UK markets; these can include care home investments and student property investment. However, as the article explained many of these Chinese investors are looking at putting between £2 to £50 million pounds into central London investments. Changes in China There are a huge amount of changes going on within the mainland Chinese money markets, one of the changes impacting our market as result of this is the change in law to the amount of money which can be moved out of China. This change, due to be implemented soon, is impacting the Chinese economy. And along with some turmoil in the Chinese stock exchange, many Chinese investors are looking to get money out of China and into the UK as quickly as possible. Simon Barry, of Harrods Estates has been quoted on this subject. He said: “There is a huge amount of wealth in China and although we have started to see investment in London property in the last five years, the focus has been on off plan new build developments ranging from £500,000 to £5 million. “This is just the beginning of a vast amount of wealth from China and we expect this will increase dramatically over the coming years, when Chinese billionaires will look to spend anything from £5 million to £50 million. “Over the past two decades, wealth generated by China’s rate of economic expansion has flowed into Hong Kong and Singapore through corporate investment, much of which has fuelled the demand for London property. “We expect to see more […]

Experience Invest

Interest grows in UK student property investment

Posted Posted in Experience Invest, property investment

The team at Experience Invest are focusing heavily on UK student accommodation investment at just the right time. We blogged before about recent figures from the CBRE which revealed investment in the sector in the first half of 2015 already passed the whole of 2014’s figures at £3.98 billion. In this blogpost we want to look at some of the reasons why student accommodation is becoming the next ‘must have’ element of your property portfolio. 4 reasons to invest in student accommodation Undersupply Student accommodation is in massive demand in the UK, not just London and the south of England. University cities and towns across the UK are desperate for more accommodation. At Experience Invest we’re looking at multiple sites in Liverpool as well as Luton.  Undersupply means high demand and high yields. Performance With high demand comes great performance, and at the moment student accommodation is out performing all other sectors. This doesn’t look set to slow down anytime soon. Assured returns Get real peace of mind on this sector from Experience Invest. At the present time most of our recommended opportunities provide assured returns for a set length of time. This is the perfect way to build your confidence in this asset class if you’re a first time property investor. Choice Experience Invest are leading the way in advice on this sector, and there’s still lots of investment choice on the market. You can view all our recommended student accommodation investments here. If you want to learn more about this asset class our friendly and experienced team are happy to help with an informal chat about the investments we offer and why we recommend them. Experience Invest Experience Invest have been trading since 2004 and we’ve worked with all types of investors from first timers to high-NET-worth individuals […]

Experience Invest

UK Student property investment is growing

Posted Posted in Experience Invest, property investment

£3.98 billion was invested into UK student property in the first half of 2015 new figures show. The team at Experience Invest are leading the way in student accommodation investment and we know that currently all the core markets are under supplied. In the whole of 2014, £2.35 billion was invested in the UK, so the figures for first half of 2015 show that investors are rapidly catching onto the potential gains in this sector. The research comes from CBRE who said that the high yields available in the student property sector are now attracting investors in large numbers. London Yields Yields in London student property are now at 4.75%, this is back to the high of the 2007 peak, this comes as an influx of students into the capital are left to fight over a lack of suitable student accommodation. This situation is happening in every university town and city across the UK. The high demand and lack of supply means that rents are going upwards and capital values climb. Investors are becoming more and more attracted by this market with occupancy rates at 99% or higher and management companies maintaining properties which supply an excellent, hassle free, passive income stream. Differences between residential and student accommodation The Head of Student Housing at CBRE, Jo Winchester said: “So long as demand outstrips supply, upward pressure on both rents and capital values will continue to make the market an attractive proposition for investors, and we don’t expect the market to come off the boil for some time. “Some investors see student housing as a more cost effective way of gaining access to the PRS, both in terms of higher yields and lower capital values per square foot. “Although there are differences between residential and student accommodation operational models, some larger […]

Commercial Property experiences three tier recovery

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Commercial property and office space are on the up while retail could be set for a new revival.  In this blog post the team at Experience Invest are taking a considered look at a recent new report by Knight Frank. The report on the June market outlook explains that all property experienced capital growth in May and that office space saw the highest capital growth at 1.5%,  with retail the lowest at 0.2%. Even though the figure for retail is low, it’s still encouraging that in the face of the always present threat of internet shopping that retail is showing some growth and may be primed for a small revival. Internet priced in The impact of internet shopping on the retail property sector has been well documented over the past five years. Yet, at this time, much of the retail property market now already has technological changes to our shopping habits priced in. New retail services like click and collect have the potential to swing back shoppers in favour of the high street. Indeed many commentators now feel that retail is in its best position for some time. James Roberts one of economists behind the report said: “Possibly investors now view the internet effect as priced in, taking some of the heat out of the market. This is perhaps a healthy downwards gear change, especially as the internet is no longer expanding its market share in retail as aggressively as a few years ago.” Shop Vacancies Vacancies in retail property have hovered around 13% according to most sources. This figure could be set to drop as the boom in online shopping levels out. Intelligent investors will be looking at growth in office and industrial property and wondering when, and if, the true return of the retail property boom will come. […]

Experience Invest

Budget 2015: Why buy-to-let landlords need to think long term

Posted Posted in Experience Invest, property investment

Here at Experience Invest we’re well aware of the changes for buy-to-let landlords made in the Summer Budget. The changes made by George Osborne have certainly set those in the buy-to-let industry talking with various influential figures commentating on the chancellors announced change to mortgage tax relief for landlords. The level of mortgage tax relief is set to be cut from 40/45 per cent to just 20 per cent in effort to make the housing market playing field a more level one for ordinary house buyers. This is a significant change for anyone investing or already invested in buy-to-let property. What the experts are saying The new rules have set experts tongues wagging with most agreeing that the main thing to do is to factor all extra costs in before making any new purchases. The other thing to always keep at the back of your mind when considering investing in a new buy-to-let property is that interest rates are sure to rise over the next five to ten years. Experts are also advising that costs involved in purchasing a buy-to-let property are now going to be more important than ever to any possible future profitability. Voids, repairs and insurance all need to be properly studied before purchasing now that mortgage tax relief has been slashed. The long term Your own level of risk must be managed before making any new buy-to-let investments and you’d be wise to seek a second considered opinion in some cases. Current landlords may also now consider hiking rents to help cover costs, this could have a double impact on Generation Rent. Overall, those entering the buy-to-let market should always be looking at the longer term for profits. Of course rental income and profiting from your asset are a big focus, but the longer term financial […]

Experience Invest interviewed by the Telegraph

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Alastair Greener of the Telegraph recently caught up with two members of the Experience Invest team to interview them about property investment. The businesses Q & A featured Jerald Solis and Dale Anderson from the Experience Invest team, who were happy to give expert insight on why the UK is seen as property safe haven. As a tangible asset people enjoy investing in property as opposed to stocks and shares and despite some fluctuations in the property market in the past Jerald explains in the video interview that “the recent crisis has only helped to emphasise just how the UK property market has passed the test”. Dale Anderson explained that foreign investors see the UK property market as a “safe haven” for investment. The hottest areas of the property market Dale Anderson also discussed some of the hottest areas of the UK property market at the moment. These areas include Experience Invest specialities such as student accommodation, care home investments and residential investments. The two experts went onto explain the importance of due diligence when looking at property investment and explained the role that Experience Invest play in this. Exit strategy Property investment is always a long-term investment, but like all investments an exit strategy must be kept in mind. Jerald Solis explained to the Telegraph that part of Experiences Invests’ services involve ensuring that there is a long term demand for any property investment, and that this helps smooth out any fluctuations in the property market. The video itself can be seen below and covers the following subjects: • Why should anyone invest in property? • Should people be nervous of the property market? • What are the most common misconceptions about investing in property? • The hottest areas of the property market • Planning to invest in property […]

Pensioners focusing on property investment

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The team at Experience Invest this week spotted new research by IP Global which revealed that since the advent of pension reforms 70 per cent of Britons have withdrawn all or part of their pension savings. It’s no surprise to our team that property investment is the most popular destination for this money. Investors see property as a more stable asset class than stocks or shares, they also anticipate a greater return than simply leaving the money in the bank. London and Manchester House prices in Manchester have risen 12 per cent over the last year as investors seek to pour money into this hotspot, London too is a popular choice for those looking to put money into the market. There is also some evidence that UK investors with equity from pension savings are looking abroad for property investment opportunities. Here at Experience Invest we’re convinced that there are still plenty of opportunities in the UK market, especially in growth areas like student accommodation and care home investments. Taking advice Those seeking to invest pension savings in property are wise to consider expert advice in the area. The team at Experience Invest are some of the most experienced in the industry and used to providing detailed advice for how to best maximise your investment. The Daily Mail reported that it expected around 50,000 people will become property investors now that new pension rules have come in. The UK offers a comparatively safe market for those looking to get into property for the long term, and if the recent past is any indicator property looks set to continue to show strong returns in the future. Experience Invest If you’re one of the estimated 50,000 people looking to put your money into property it would be beneficial to have an impartial chat […]