Advantages of investing in care homes

Advantages of investing in care homes

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In recent times, more and more people are considering care home investments as an alternative investment strategy for a variety of reasons.

In today’s article, I’m going to outline these and show why it’s fast becoming a suitable UK property investment for so many people.

Ageing UK population

Despite the fact care homes have been existent in the UK for many years now, care home investment is currently very much a growing trend since changing demographics over the last thirty years or so have led to a substantial increase in the percentage of the UK population, which is aged 65 and over.

At present this is almost a fifth of the total population and it is predicted to increase to around a quarter over the course of the next thirty years. We’re constantly told that the UK has an ageing population and it’s certainly true amongst a large percentage of the total demographic. In the simplest of terms, the laws of supply and demand very much favour this market sector.

The figures show that there are more and more older people seeking these care homes and with a relative shortage in terms of supply on these, prices are going up on the care home investment sector.

Strain on public funded care

English councils are facing growing numbers of elderly and disabled people who require care, whilst facing a lack of funding to pay social care fees. To meet the growing need all but four councils in England are planning to increase council tax by the maximum allowed to help pay for social care.

The implementation of the National Living Wage6 in 2016, coupled with financial pressures on local authorities has put added strain on the care industry. Rises in providers’ costs and the squeeze on local councils’ budgets are leaving some care providers in an unsustainable position.

The combination of both privately and publicly-owned care home closures, and increasing numbers of people requiring social care, means there are big opportunities for well-run providers of care to expand the development and refurbishment of a care home investment in areas of high demand.

In some ways better than residential or commercial?

Investing in care homes offers the best advantages of commercial property investment and residential property investment, while minimising the potential downsides of both.

Other types of commercial property such as retail or office space can be affected by the same sorts of issues as faced by residential landlords. These include vacant periods, unrecoverable rent and changes in circumstances which negatively affect the property, such as changes to the employment landscape or to transport links.

The nature of care homes is such that these issues are generally of little to no concern.  The simple fact of the matter is that the ageing population of the UK has been growing older for three decades now and is set to keep on growing older for at least the next three decades.  Older people require homes which are suitable for their needs in the later stages of their life and care homes provide an effective way of catering for the ageing population.

Highly regulated industry

Due to the highly sensitive and important nature of care, the care home investment sector is a highly-regulated industry. The Care Quality Commission (CQC) are the independent regulator responsible for monitoring, inspecting and regulating health and social care services in England.

Because of the CQC’s regular inspections, most care homes are kept to the highest standard in terms of living space and building quality, meaning that any investor buying a room in these can expect very little to go wrong from their perspective. It’s a completely hands-off investment sector that is left in the hands of the professionals both on-site and from the regulators.

With the tried and tested sales model, finding an ethical, sustainable investment that delivers stable returns and prospects for capital appreciation is no longer the preserve of large institutional investment, and is increasingly becoming an attractive option for individual investors thanks to the security of long leasebacks and long-term cash flows.

For the private investor, now is an excellent time to consider investing in a care home investment. There are a growing number of innovative developers offering great UK property investments of this nature.

Our Investments page contains all the information on the latest Tarquin Jones property investments. Please give us a call on 0208 445 6542 or email us at info@tarquinjones.com to inquire with us directly regarding any of them.

 

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Can you balance property investment with a full-time job?

Can you balance property investment with a full-time job?

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Many budding property investors have the desire, will and funds to invest with, but don’t necessarily know if their prospective property investment will be compatible with their job. The truth is, if you go about investing in the right kind of hands-off property, then it’s perfectly possible to maintain your occupation without it hindering your property investment goals.

In today’s article, I will outline exactly what is required to pursue your career goals whilst maintaining a successful, hands-off UK property portfolio.

Two forms of income

The most obvious benefit of continuing to work whilst owning a property investment is that it provides you with more income on a regular basis. This is essential for saving money in which to put back into more property investments to build up your UK property portfolio. One form of income can maintain your lifestyle and pay the bills, whilst the other can go straight into your savings account for investing in more properties.

A hands-off approach

With regards to purchasing property investments, I’ve spoken with many first-time UK property investors that are under the misapprehension that they need to dedicate all of their time towards managing and maintaining their portfolios. This is not the case- in fact, many of the clients we’ve helped start or expand their portfolios take a completely hands-off role towards managing their property investment.

They do this by employing experienced lettings companies local to the property to handle the day-to-day running of everything. Collecting rent in which to pay you, dealing with potential maintenance and repair issues, finding new tenants and dealing with void periods etc.

By taking a hands-off role, this enables you as the investor to kick back and earn money without doing anything towards the upkeep of your property. Sure, you pay a fee to the company every month for the service. But many are happy to pay it for peace of mind they provide, and with two incomes rolling in from your job and property investment, it’s a small price you can afford to pay.

More free time towards finding future purchases

If you quit your job and dedicate all of your time towards managing your own property investments, you may find that this requires much of your downtime towards dealing with trivial issues like faulty boilers or leaky taps. At least with your job (or most jobs!) you finish at a certain time and are able to spend your free time identifying the UK property markets and where to make your next property investment purchases accordingly.

With more leisure time as a result of your property being managed for you, this is time that can go towards locating the best property hotspots and hands-off property investments across the UK.

Better chance of securing lending

Most lenders don’t consider income from properties towards the requirements necessary to obtain a mortgage. Because of this, it’s actually prudent to remain in your job so that the income produced not only gives you additional funds, but also because you’re more likely to receive the necessary lending to purchase UK property investments.

It isn’t impossible to secure a mortgage based on this criterion alone but having a dependable source of income will greatly enhance your chances so that you don’t have to undergo a painstakingly long search scouring the markets to get financing at bad rates.

Your job may aid you with regards to UK property investment

I’m not just referring to the money your job provides here either. Your occupation may give you an insight into how UK property is faring or how the purchase process works. For example, those who work in the business sector may know the legal process of purchasing a Buy to Let property with regards to conveyancing. A construction manager will know what is required to refurbish potential property investments because they do it as part of their job. I myself work in property of course, and my experiences here at Tarquin Jones will prove invaluable when I save up enough money to invest myself!

Your job may not overlap with giving you an insight into how property investment works. But the people you work with may be like you- aspiring first-time investors saving up for a hands-off UK property investment. You may pool your resources with them in order to invest together and obtain property of a higher value than you would by yourself. This can lead to profitable partnerships- both the directors here at Tarquin Jones for example worked together by chance years ago and formed this company together as a result.

Of course, there are advantages to focusing solely on property, and it came come down to personal preference as to what’s best for you and your property investment goals. It’s worth pointing out though that it is more than possible to continue your chosen career path whilst balancing a hands-off UK property portfolio that won’t impact your day-to-day life.

Our Investments page contains all the information on the latest Tarquin Jones property investments. Please give us a call on 0208 445 6542 or email us at info@tarquinjones.com to inquire with us directly regarding any of them.

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Commercial property sectors to consider for high yields

Commercial property sectors to consider for high yields

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Here at Tarquin Jones, we don’t limit ourselves to one type of property in order to make our clients money. Residential and student property are the most well-known property sectors, but many people who target a high yield for their investments sometimes completely overlook commercial property as sometimes the more efficient option.

In today’s article, I will outline the different types of property in the commercial sector and highlight the pros of each investment method.

Hotel investments

Hotel room investments give investors the chance of putting their money into an individual room in a hotel complex. Those operating the hotel itself handle the day-to-day running of it along with all the other rooms meaning you have a completely hands-off role in terms of managing it. The managing company who staff the hotel provide investors with a set yield that they will pay to you as the owner every month/quarter. The difference the hotel operators’ pocket as their fee for running your hotel room on your behalf.

Investing in a hotel room is an easy way of tapping into the tourism industry and how lucrative it can be provided you invest in the right location i.e. somewhere with a high tourism rate with lots of attractions. Yields are naturally high because of the lower price of the units when compared to studios or one-bedroom apartments in residential blocks. Cumbria Park Hotel is one such opportunity which fits the archetypal hotel investment.

Car parking investments

Car parking spaces are one of the most underrated forms of property investments out there right now. The principle is that you purchase a space and rent it out in order to make money. The demand for people to park their car in highly saturated locations like an airport is massive, and this lends itself well to securing regular and sustainable returns over the long-term.

This is usually one of the most affordable investment options out there, as the minimum cash balance required to invest with is a lot lower than most other forms of investments in different sectors. For example, the Glasgow Airport Car Parking investment opportunity has spaces going from £25,000, making it an ideal option for anyone with a limited cash budget.

Office space investments

Office space is highly sought after by both new and established companies and businesses, especially of course in locations that are economically strong with high employment rates. Purchasing office space in a complex that businesses house its employees in is a great way of securing high yields due to the low price of the suites.

The business renting out your office suite will pay you your returns. Again, the low price of smaller office suites leads to a high yield on purchased units there as opposed to say property in the residential sector. So for those looking for an affordable investment options with a primary goal of obtaining high and sustainable returns, office space investments are a great option. Regent 88 Liverpool is a good example of this.

Care home investments

With an aging population in the UK, more and more elderly people are moving into care homes later in life. With this kind of growing demand, it’s no wonder investors are turning to property in this sector to achieve their investment goals from an ethical standpoint.

Due to the highly sensitive and important nature of care, the health and social care sector is a highly-regulated industry. The Care Quality Commission (CQC) are the independent regulator responsible for monitoring, inspecting and regulating health and social care services in England.

Because of the CQC’s regular inspections, most care homes are kept to the highest standard in terms of living space and building quality, meaning that any investor buying a room in these can expect very little to go wrong from their perspective. It’s a completely hands-off investment sector that is left in the hands of the professionals both on-site and from the regulators. Plas Y Bryn is one of the best care home opportunities up-and-running currently which fulfils everything mentioned here.

The best investors are open minded in their property search, and don’t necessarily limit themselves to one form of investment sector. All of the forms of commercial property listed here are great for high yields, but by diversifying your portfolio across all sectors, you limit the potential damage that adverse market conditions can affect your investments. For example, new government measures could hit property in the hotel sector and if you’ve put all your eggs in one basket there, your entire portfolio will suffer.

Consider investing in the variety of sectors mentioned here to diversify your investments and keep a widespread cashflow across property in different sectors.

For more information on our latest investment opportunities, click on the Investments tab on our homepage. Alternatively, give us a call on 0208 445 6542 or email us at info@tarquinjones.com for more details.

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HS2’s impact on UK property prices

HS2’s impact on UK property prices

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HS2 is the new high-speed rail network coming to the UK which will massively enhance travel links across the country and reduce travel times. Starting in Birmingham with the first phase due for 2026 and coming to the North West of England due for 2032, the mere mention of HS2 has already driven up house prices to properties that will be near the stations. Here, I will discuss the effects of HS2 on property and how investors are taking advantage of potential capital growth well before completion.

Travel from major northern UK cities to London will be easier than ever with HS2 in place. Birmingham to London will be a 49-minute journey, and a train from Manchester to London via HS2 will be an hour faster than it is now; down 67 minutes from 127. This is a commuter’s dream, meaning that many will look to live in property which is walking distance from the HS2 terminal in city centres. The increased demand will lead to house price increases, and many investors are putting their money in off-plan property in cities like Birmingham, Manchester and Liverpool to capitalise on this in the future.

A good example model for how enhanced transport links can increase house prices is the Crossrail in London and outer London areas. In London and the South East, the increase in value of residential property close to Crossrail stations, since that project was confirmed in 2007, ranges from 36-60%. Further increases are likely – values tend to get another boost once operations begin – but already smart money is turning to the High Speed Two rail link (HS2), especially now that the route from Birmingham to both Manchester and Leeds has been confirmed.

Over time there is also the distinct possibility that HS2 could invigorate the property market in the whole of the north of the country, thus addressing a problematic issue that has dogged Great Britain for too long: the north/south divide. The government predicts that 70% of the jobs created by HS2 will be outside of London, itself a catalyst for giving a boost to the property markets in areas such as Birmingham and even other Midlands cities.

Figures suggest that the East Midlands will gain most as a region in percentage terms – between 2.2% and 4.3% increase in output in 2037 projected, which may prompt a revival in the property market in many northern UK cities in the years to come.

Many big businesses and companies are taking note of the HS2 effect it’s having on major northern cities. Birmingham has already seen a series of major corporates taking the opportunity to shift large parts of their business out of central London. HSBC and Deutsche Bank have done so recently leading to an increase of those needing property in the city centre. Perhaps most significantly, in March 2015 HSBC announced that it would move around 1,000 jobs from London to Birmingham, much of which is near the proposed HS2 station in Digbeth.

As a result, residential investors have already started ploughing into Digbeth, the area immediately near the anticipated HS2 station in Curzon Street. “There has been a wave of interest from developers in the area around the planned Curzon Street HS2 station,” says Mark Evans, head of regional residential development at Knight Frank. “The station is part of a much wider regeneration of this area and we can see this reflected in land prices.”

A similar story is to be found in Leeds and Manchester – something that both cities’ councils are keen to exploit. In Leeds, the council has designated the area around its main train station – which should start to receive HS2 services in 2033 – as an area to accommodate around 4,000 new homes. In Manchester, meanwhile, the council has designated six zones adjacent to its nascent HS2 station, three of which are expected to deliver significant volumes of residential property.

Due to the fact HS2 is some way off just yet, many big property agents are wary to forecast figures in terms of what the expected growth will be. But because of historical trends of transport link enhancements increasing property prices in the surrounding area i.e. Crossrail and DLR in London, all are confident that HS2 will follow in a similar vein and lead to capital growth for homeowners.

For more information on our latest investment opportunities, click on the Investments tab on our homepage. Alternatively, give us a call on 0208 445 6542 or email us at info@tarquinjones.com for more details.

 

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Features of Manchester

Features of Manchester

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Manchester, they do things differently. First said by Tony Wilson otherwise known as ‘Mr Manchester’, the often-named Capital of the North is the 2nd largest city in the UK after London and is known as a hotbed of British history and culture.

Here are some of the features which define Manchester as one of the UK’s best and most important cities historically and in the present era.

It began as a Roman fort in AD 79.

Manchester has been responsible for many of the world’s most technological advances and cultural landmarks which can all be traced back to one Roman fort named Mancuniam way back in AD 79. Its citizens are known as ‘Mancunians’ in relation to this.

It’s most linguistically diverse city in Western Europe.

With a population of 2.5 million people, 200 languages are spoken in Manchester, reinforcing the fact it is a true international city. It has the second largest Chinatown in the UK and the third largest in Europe, containing many Chinese, Japanese, Thai and Malaysian restaurants amongst others.

It is the football capital of the world!

Football defines Manchester and it’s a known fact Manchester United are one of the biggest and most successful football clubs in the world. They compete regularly with local rivals Manchester City in the Premier League in one of the fiercest derby games in English football. The National Football Museum is also located in Manchester which preserves and contains football memorabilia.

It was the world’s first industrial city.

Manchester has a rich industrial heritage and had a huge role in Britain’s Industrial Revolution in the 19th Century. Fact is, the city was referred to as Cottonopolis because of its role in the cotton industry and was also famous for its textile manufacturing.

The atom was split in Manchester.

This was a major scientific breakthrough that shaped how we all live our lives today. In 1911, Ernest Rutherford was able to split the atom and create a new scientific discipline of nuclear physics. He did so whilst in the Chair of Physics at Manchester University.

It’s famous for its music scene.

Many of the UK’s best musicians and bands have originated from Manchester including Oasis, The Smiths, Joy Division, The Stone Roses and The 1975. Many of these bands amongst others formed part of the ‘Madchester’ music scene during the 1980s/90s. Two famous symphony orchestras are also from Manchester, those being the Halle and the BBC Philharmonic.

Rolls Royce was founded there!

Rolls-Royce is one of the most famous British luxury car producers known globally which all began in Manchester. In 1904, Henry Royce was introduced to Charles Rolls and two years later the entrepreneurs founded Rolls-Royce Ltd, and it has since evolved into a global brand that many around the world want to drive. In 2017, Rolls Royce announced its second highest sales record in its 113 year history.

It has the world famous ‘Curry Mile!’

Over 70 South Asian cuisine restaurants are located within half a mile next to each other in Manchester. An interesting fact is that this is the largest concentration of South Asian restaurants outside the Indian subcontinent. Britain sure does love its curries and nowhere more so than Manchester.

It has the largest student population of any city in Europe.

Over 100,000 students study in Manchester, many of which attend the University of Manchester which is known as one of the best universities in the UK. In fact, 25 Nobel Prize winners have worked or studied there including Ernest Rutherford and James Chadwick noted for their work on nuclear fission.

It had the first ever free public library.

Chethams Library was opened in Manchester in 1653 and is still open to this day. It stands as the oldest public library in the English-speaking world and holds over 100,000 volumes of printed books. Karl Marx often frequented Chethams Library and started writing ‘The Communists Manifesto’ there.

It had the world’s first passenger train station.

Founded in 1830 in tandem with Liverpool, the station linked the two cities together in the North West of England. It was the first railway to rely exclusively on steam power and to have a double track throughout its length.

It is a UNESCO City of Literature.

Many famous writers have originated or based themselves in Manchester down the years. Charles Dickens is reputed to have set his novel ‘Hard Times’ in the city and Anthony Burgess wrote his most well-known work here, A Clockwork Orange. Karl Marx and Friedrich Engels would go onto found Marxist Theory together and published the book ‘The Conditions of the Working Class in Britain’ in 1845 which was based on their personal observations and research in Manchester.

Manchester is consistently ranked as both a fantastic city to live in as well as invest in which appeals to many investors looking to maximise their return on investment in a city they know is a fundamentally sound option.

For more information on our latest investment opportunities, click on the Investments tab on our homepage. Alternatively, give us a call on 0208 445 6542 or email us at info@tarquinjones.com for more details.

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Features of Liverpool

Features of Liverpool

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Liverpool is recognised as one of the UK’s major cities that has been home to some of the country’s most innovative industrial and cultural phenomena since the city was founded in 1207. Here are the defining features of Liverpool that cement its place as one of the UK’s best and most important cities.

Liverpool was the 2nd largest city of the British Empire after London and possessed the world’s largest harbour.

Founded in 1207 by King John, the city of Liverpool started as a borough comprised of only 7 streets. It’s a fact that the harbour was used to collect and deliver goods from all over the world including tobacco, fabrics, cotton and other raw materials.

Liverpool’s waterfront is a UNESCO World Heritage site.

This achievement was granted in 2004 by UNESCO to greater recognise the commercial port at the time when Britain was at its most influential in world affairs. The World Heritage Site runs through the Albert Dock and the docking complex and warehouses comprises the largest single collection of Grade A listed buildings anywhere in the UK.

Liverpool was the 1st English city to be awarded the European Capital of Culture in 2008.

This award is given every calendar year to a city to recognise its historical and cultural importance across Europe. Media coverage of Liverpool’s cultural attractions doubled during this time and generated £753.8m for the economy.

It’s the home of the Beatles!

It’s impossible to talk about Liverpool without mentioning the biggest phenomenon in music history. Known as the Fab Four, The Beatles are credited with changing the face of popular music and the fact that they are still to date the best-selling music artists of all time cements their legacy in Liverpool folklore.

It is the most successful footballing city in England.

England is known as a football crazy country, and nowhere is this truer than in Liverpool. Between Liverpool FC and Everton, the city has 27 League Championships, 5 European Cups, 11 FA Cups, 3 UEFA Cups, 6 League Cups and one Cup Winners Cup to its name. Both compete regularly in the Premier League and it’s a well-known fact that the Merseyside derby is known as one of the fiercest rivalries in English football.

Tourists bring £3.6 million of revenue to the city each year.

Liverpool is a hotbed of tourist attractions and the cities tourism industry employs around 50,000 people. The history and legacy of the Beatles, several art galleries, a fascinating maritime history and superb entertainment venues such as the famous Cavern Club are the main reasons why tourists find Liverpool such a great city to visit.

It had the world’s first ever passenger railway line.

In 1830, the railway opened which linked the North Western cities of Liverpool and Manchester. This was to provide faster shipping of raw materials between the port of Liverpool and mills of Manchester. The fact is it was the first of its kind and came complete with a timetable showed the cities great technological enhancements.

It has more museums and galleries than anywhere else outside London.

Liverpool has one of the most impressive collections of museums in Europe. The Museum of Liverpool was the 1st UK museum dedicated to the history of a city. The Albert Dock often houses many more museums, such as the Merseyside Maritime Museum and International Slavery Museum where more can be learned about the heritage of Liverpool as a port city. Tate Liverpool is the cities most renowned art gallery, featuring famous works by the likes of Tracey Emin all the way back to Picasso.

It is home to the largest cathedral in the UK and the 5th largest in the world.

The Anglican Cathedral was designed by Sir Giles Gilbert Scott in 1904. It has a monster bell known as “Great George” which weighs 15 tons, eclipsing even Big Ben in terms of size!

Some of your favourite films have been shot there!

Liverpool has had hundreds of successful films shot there and it’s a fact the city is recognised for having a superb filming industry. The Hunt for Red October, Sherlock Holmes, Captain America, Harry Potter and the Deathly Hallows, The Dark Knight and Fantastic Beasts to name a few have all been films in which Liverpool was used for filming. Interestingly, Liverpool has also doubled for other major European cities, such as Moscow, Dublin, Paris and Venice.

The Grand National takes place there every year.

The world’s most famous horserace is watched by approximately 600 million viewers at home and attended by thousands of punters in Aintree. The Grand National is one of the biggest yearly attractions that Liverpool has to offer.

Liverpool is a city brimming with history and character and one of the few places in the UK outside of London that can claim to be a truly international city. Tourists from across the world flock there every year and delight at taking in the cultural and historical attractions it has to offer.

For more information on our latest investment opportunities, click on the Investments tab on our homepage. Alternatively, give us a call on 0208 445 6542 or email us at info@tarquinjones.com for more details.

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Features of Birmingham

Features of Birmingham

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Birmingham has a rich and detailed history as one of the UK’s biggest and best cities. The distinctive accent, the history and multi-cultural nature of the city makes ‘Brum’ such a unique place to visit and experience. Here are some of the well-known features of Birmingham which make it such an attractive city in the UK.

It’s the second largest city in the UK

After London, Birmingham is home to the most people in the UK with a population of over 1.1 million people, higher than the likes of Manchester, Leeds, Edinburgh and Liverpool.

The city has longer canals than Venice

Birmingham has an intricate canal system that dates back to the Industrial Revolution in which they were used to transport coal, iron and other heavy goods. This played a huge role in Birmingham’s development as a city and the 35 mile canal system within Birmingham itself dwarfs the 26 miles of canal that Venice has to offer. An interesting fact is that the entire Birmingham canal navigations make up 100 miles in total- that’s nearly as long as the distance from Birmingham to London!

It has 9 twin cities

Birmingham has to date nine sister cities that have modelled itself after it. These include Chicago, Frankfurt, Johannesburg, Lyon, Milan, Leipzig, Guangzhou, Changchun and Nanjing. Another interesting fact is that Birmingham, Alabama in the United States is named after the city and shares an industrial kinship with it, a nod to the legacy of Birmingham in the United Kingdom.

The industrial steam engine was invented here

Perhaps one of the most important inventions in British history, it was Thomas Newcomen who created the world’s first practical engine to harness the power of steam in 1712. Because of the importance of this, July 14th is now known as Black Country Day which marks the regions industrial heritage. James Watt would later design an improved version in 1776 that doubled its fuel efficiency.

Its Jewellery Quarter has the largest area of jewellery shops in Europe

Birmingham’s Jewellery Quarter has the highest concentration of jewellery shops in Europe, with around 40% of the countries jewellery produced there. If you come across a fancy watch or necklace in a shop, fact is there’s a good chance it was made in Birmingham’s Jewellery Quarter!

It has a famous sporting heritage

Birmingham has a rich history as a hotbed of sports, with the original concept of England’s Football League and tennis both originating from the city. Its most successful football club Aston Villa have won 7 league titles and is one of only 5 English clubs in history to have won the European Cup. Birmingham will also host the 2022 Commonwealth Games.

It’s the birthplace of heavy metal

Birmingham has had many pioneering heavy metal bands which include Black Sabbath, Judas Priest and half of Led Zeppelin having come from the city. Other famous musical groups and artists from Birmingham include Duran Duran, Electric Light Orchestra and Dexys Midnight Runners.

It has the largest public library in Europe

The Library of Birmingham is the largest regional library in Europe lending 8 million books every year. 2.4 million visitors came to the library in 2014, making it the 10th most popular visitor attraction in the UK.

It has a rich literary history

Many famous British writers and authors were born, raised or lived in Birmingham. Arthur Conan Doyle, famous for the Sherlock Holmes novels, worked in the Aston area of Birmingham. Poet W.H. Auden grew up there as did award winning playwright David Edgar. J.R.R Tolkien was brought up in Birmingham and several city locations inspired places in the Lord of the Rings trilogy- the books two towers were apparently based on the water works building at Edgbaston in Birmingham.

It’s one of the greenest cities in Europe

There are 571 parks in Birmingham- more than any other European city- totalling over 3,500 hectares of public open space. Sutton Park is the largest urban park in Europe and has a National Nature Reserve.

It’s the home of Cadbury’s chocolate

Cadbury’s is a British institution, being recognised as the maker of the countries favourite confectionary including the iconic Dairy Milk chocolate bar. This all originated in Birmingham as John Cadbury began selling tea, coffee and drinking chocolate in Bull Street Birmingham in the early 19th century. In 1854, the Cadbury brothers received a Royal Warrant as manufacturers of chocolate and cocoa to Queen Victoria.

It’s one of the most culturally diverse cities in the UK

Birmingham is home to people of many different backgrounds and ethnicities- including people of Indian, African, Caribbean and Chinese descent. An interesting fact about Birmingham is that the Punjabi bhangra music movement started in the city in the 1960s- it truly is a city that demonstrates Britain’s multi-cultural nature and the city have been influenced by this heavily.

Birmingham is a wonderful city filled with history, cultural movements and phenomenon’s, and superb infrastructure and architecture. Tarquin Jones offers a variety of investment opportunities at the heart of all I’ve mentioned here, including the high class One BHM development.

For more information on our latest investment opportunities, click on the Investments tab on our homepage. Alternatively, give us a call on 0208 445 6542 or email us at info@tarquinjones.com for more details.

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The advantages of becoming a property investor whilst keeping your full-time job

The advantages of becoming a property investor whilst keeping your full-time job

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Many would-be investors love the idea of starting their own property portfolios. One; for the obvious reason that it makes them money. Two; because it allows them to quit their day jobs and become a full-time property investor/landlord. But is this necessarily the best route to take?

I understand there will be many who embrace managing their own properties and good for them. But it is entirely possible for those who want to keep their job to do so and still invest in property. There are some benefits to staying in a full-time job whilst being a property investor in tandem after all.

Here, I will outline what they are and explain the benefits of having property as a highly profitable hobby rather than a full-time occupation.

Two sources of income

This is the most attractive point to many. Owning a property which earns you rent on top of the money you make from your job gives you two sources of income. This means that you can reinvest one set of profits straight back into your property purchases and grow your portfolio faster than you would be able to otherwise.

The idea is that you build and save your source of income to go towards growing your portfolio over time.

Letting and managing companies

If you decide to become a professional landlord and manage everything yourself, that is in essence a full-time job. What many people, particularly rookie investors, assume is that they actually need to quit their job simply to be able to manage everything. This is not the case.

What many investors choose to do is take a hands-off approach with their property purchases. This means hiring a trusted lettings agency to manage everything from finding a tenant for your property, dealing with maintenance and repair issues and doing the necessary checks and inspections.

This enables you as the investor to kick back and earn money without doing anything towards the upkeep of your property. Sure, you pay a fee to the company every month for the service. But many are happy to pay it for peace of mind they provide, and with two incomes rolling in from your job and investment, it’s a small price you can afford to pay.

More time towards identifying future purchases

With more leisure time as a result of your property being managed for you, this is time that can go towards locating the best property hotspots and developments in the country. Instead of dealing with your tenant’s faulty boiler or leaky tap, you can dedicate more time towards expanding your property portfolio by doing all the necessary due diligence and research.

Easier lending capabilities

Most lenders don’t consider income from properties towards the requirements to obtain a mortgage. Many are baffled by this, but these are the stubborn practices in place. I’m not saying there’s no chance of you getting a mortgage based purely on lenders without minimum income requirements but having a dependable source of income from a full-time job means you’ll give yourself the best possible chance of securing financing.

Job may help you when investing

Even if you dislike your job, it may be giving you important skills and knowledge that can give you an edge when it comes to buying or managing a property.

For example, I have spoken with mortgage brokers who want to invest that intricately know the requirements and process of what it takes to obtain financing. Or those as construction managers who can easily manage the refurbishments of their properties because they do it every day.

Of course, your job may not overlap with your investment goals skills-wise. But the people you work with may be like you- budding first time investors building up that deposit. You may end up investing together into properties you wouldn’t have been able to on your own and form a profitable partnership. It happens more often than you’d think- both the directors here at Tarquin Jones worked together by chance years ago and formed this company together.

You can plan long-term

Obtaining a cash-flow is vitally important, but if you don’t need the income now (because you’ve got a job paying the bills), you’re free to adopt a strategy that lends itself to more deferred gains.

For example, you can buy a property which only makes a small monthly profit, but where there’s scope to add significant value (or get significant rental uplift) by extending or reconfiguring. Even if you need to save up for a year before you can do the work and realise the gains, that’s fine: you can just put tenants in to cover your costs in the meantime.

Of course, there are many advantages to focusing solely on property, and it’s totally a question of personal preferences and circumstances as to which is best. It’s worth point out though the benefits that continuing to work has alongside becoming a property investor- albeit part time.

For more information on our latest investment opportunities, click on the Investments tab on our homepage. Alternatively, give us a call on 0208 445 6542 or email us at info@tarquinjones.com for more details.

AdminThe advantages of becoming a property investor whilst keeping your full-time job
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Why invest in UK student property?

Why invest in UK student property?

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Student property has proven to be one of the most reliable forms of investment for many buyers, both first-time investors and experienced landlords alike. The reasons for this are numerous, and I’m going to cover these in today’s article which will focus on the pros of investing in UK student property.

High demand

It’s no secret that UK property in general suffers from high demand combined with low supply, and the student sector feels this problem just as much. Most universities across the UK do not have the capabilities to house everyone who attends, so this leads to more and more students having to turn to the private sector for their accommodation.

For example, Plymouth has 4 higher educational institutions which includes the University of Plymouth and has approximately 25,000 students across them. However, only 3,000 are actually housed within the university halls of residence.

Newcastle has the same issue. 50,000 students attend the cities higher educational institutes but 28,000 are unable to attain the universities accommodation. Various other cities across the UK have the exact same problem.

This creates a gap for private student property to fill the void and attempt to meet the growing demand. Students and investors alike are therefore turning to this type of student accommodation which in turn is leading to higher prices and sustainable returns for investors.

Rising number of students

More young people than ever are attending university and it’s no longer considered something for the privileged elite. Student numbers have almost doubled in the UK since 1992- figures show that from the period March-May 1992 there was 984,000 people aged 18-24 in full time education. In May-July 2016, there was 1.87 million, approximately 1 in 3 people, aged 18-24 in full time education.

Higher education is now commonplace, and this is all despite the rising tuition fees showing this is not considered a major deterrent among many looking to study in the UK.

High yields

Any investor whose primary goal is to achieve a high yield is best placed to pursue student property as opposed to most residential opportunities. The more affordable pricing along with the fact that student property isn’t known for its massive capital growth lends itself well to high yielding student deals in various university towns and cities across the UK.

We at Tarquin Jones have a variety of student investments that offer upwards of 8% net yielding rooms in thriving student cities such as Liverpool, Newcastle and Plymouth. Because of the fact that said student deals are in such popular cities, there is a long list of potential buyers for these. As a result, resell value for property in these cities is surprisingly good when you consider that student property is typically more difficult to resell than residential schemes. Buying a student unit(s) in a city with plenty of amenities nearby i.e. bars, restaurants, gyms, transport links etc, will help massively when it comes to selling your property as and when you want to.

Student’s growing expectation on their accommodation

Over the years, there has been a paradigm change in the lifestyle of UK students. Many are now shunning the previously traditional low rent second hand HMO properties as they see the new build purpose-built accommodation with higher expectations than they had done before. Value for money is increasingly becoming considered in terms of accommodation.

Increase in tuition fees has created a new breed of modern students who see the burden of increased financial debt should result in value for money in terms of the accommodation services being offered. Many investors are taking note of this attitude change and this is a major, yet understated, reason why many are choosing to invest in student property.

The size of the student accommodation market in the UK shows no sign of slowing down. With more student property in the private sector being developed in the country, there is only going to be a diversification of investment into the sector allowing those who wish to get involved the opportunity to invest their money in the student accommodation in various cities.

With the UK’s reputation of world class education combined with a rise in the student population, new build student property is proving to be a preferred asset class for the discerning investors looking primarily for high and sustainable returns.

For more information on our latest investment opportunities, click on the Investments tab on our homepage. Alternatively, give us a call on 0208 445 6542 or email us at info@tarquinjones.com for more details.

 

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Why to invest in Plymouth’s thriving student property market

Why to invest in Plymouth’s thriving student property market

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One of the more overlooked property hotspots in the UK is going to be the main focus of today’s article. Plymouth has long been one of the countries best student locations, especially for those pursuing maritime based careers marking it as a niche location in which student numbers are on the rise.

South West

The South West has been a very strong area for property investment over the past couple of years and has a four-year forecast of nearly 30% growth (almost 8% per annum).

Our focus area in the South West – Plymouth certainly remains one of the best cities in the UK for those wishing to dip into the buy-to-let market or add to their property portfolio. There has been substantial investment in the economic regeneration of Plymouth and it has swiftly become the go-to area in Devon and one of the optimal areas in the South West for property investment opportunities.

Regeneration

The 60,000m2 Drake Circus shopping scheme was a resounding success and not resting on their laurels, the council have been instrumental in the current plan to add an additional 86,000m2 retail development in the adjacent Cornwall St area.

While the council has clamped down on issuing planning consent for the conversion of dwellings to student accommodation – one of the major markets in Plymouth – this has only served to increase the growth potential for properties inside the golden triangle around the university campus (Mutley, North Hill etc). Perhaps as a result of the constraints on supply, there have been significant rises in rents for student accommodation, offering investors very attractive yields. This has led experts to posit Plymouth alongside Norwich and Bournemouth as some of the top cities in the UK in which to invest in student housing.

On top of this, in accordance with the City Centre and University Action Plan (2010) 700 new houses have passed through the planning stages of late and this development is planned to include an extra 2,000 car-parking spaces as well as a landmark department store.

Furthermore, elsewhere in the city centre, there is more potential for new development, as in Colin Campbell Court adjoining Western Approach, which boasts the potential for a mixed-use scheme, also outlined in the Area Action Plan. On top of this there is an ongoing plan (2006-2026) for the creation of new jobs and business services laid out in the council’s strategic economic plan.

Plymouth is also in one of the areas of the UK that was slowest to start the recovery from the market crash and while prices are now back up to where they were beforehand; this means that there is still a massive potential uplift for buyers investing today. This is confirmed by industry experts. Roger Punch, the South West spokesman for RICS, claimed: “It started to take effect elsewhere way back last year and caused the market to warm up and really get going. But it’s only just starting to reach us.”** A boosted confidence in the economy and initiatives like the ‘Help to Buy’ scheme have all helped to reinvigorate market, according to property experts.

In other news, the First Great Western rail service has in October 2014 announced a time-scale for the implementation of free Wi-Fi aboard its trains that service the South West, which is another attractive proposition for commuters looking to relocate to the region.

Student property

Academically, Plymouth has a longstanding reputation as an outstanding research centre, particularly in relation to marine sciences. The buzzing city of Plymouth is home to Plymouth University, The University of St Mark and St John (Marjon) and the Plymouth College of Art, which is one of only four independent colleges of art and design in the UK.

Between all of these establishments there are over 25,000 full time students, however only around 3,000 of these are accommodated within University halls of residence. As such, there is a real need for suitable student accommodation. Private student developments then such as North Hill Court are in high demand and are providing investors with high, sustainable returns the kind of which associated with student property.

Plymouth’s combination of regeneration and niche location as a hotbed of maritime studies make it a superb place to put your money into for student investments. Those after high and regular returns will find Plymouth to be an excellent location to achieve their investment goals such as self-funding their pension come retirement and maintaining their own lifestyles beforehand.

For more information on our latest investment opportunities, click on the Investments tab on our homepage. Alternatively, give us a call on 0208 445 6542 or email us at info@tarquinjones.com for more details.

AdminWhy to invest in Plymouth’s thriving student property market
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