Wednesday, 27 January 2010
Saturday, 23 January 2010
Property Investment for 2010
Property investment turnover in Central and Eastern Europe (CEE) surged more than 300 percent in the second half of 2009 from the first half, as pricing began to stabilise and confidence in local economies recovered, a report showed on Thursday.
The huge rise in commercial property sales volume brings total 2009 turnover in the region to 2.5 billion euros ($3.55 billion), broker CB Richard Ellis (CBRE) said, noting continued preference for "defensive properties in core locations".
Despite higher levels of activity in the second half of the year, CBRE described the 2009 market as "quiet" compared with recent years. Investment turnover in 2009 finished 75 percent lower than in 2008.
Central Europe accounted for 56 percent of CEE turnover in 2009, compared with 37 percent in 2008. Investors sought the relative security of assets in Central European capital city markets such as Prague, Warsaw and Budapest, which increased their share of total CEE turnover to 34 percent in 2009 from 21 percent in 2008.
Southeastern Europe's share of turnover fell more than half to 12 percent in 2009, while Eastern Europe's share dipped to 32 percent from 37 percent in 2009.Offices received the largest share of investor attention for most of 2009, grabbing 44 percent of the market versus 31 percent for retail and 12 percent for industrial property. Hotels accounted for 8 percent of transactions.
Both prime yields and prime capital values were relatively stable in CEE in the latter part of 2009, CBRE said, with more evidence of transactions closing at or near quoted prime yields in recent months.
"The fact that prime yields fell in certain Western European markets in H2 2009 has bolstered belief that prime yields have reached highs in most CEE markets," Pavel Schanka, Director of CEE Capital Markets said.
"Despite some promising signs at the prime end of the market, value declines are still a reality at this point in non-prime segments in most CEE property investment markets, and are likely to remain so in 2010."
London surged as the top destination for commercial real estate investment, beating out Washington D.C. and leaving New York in the dust, according to a recent survey by the Association of Foreign Investors in Real Estate (AFIRE).
London's score was 31 points higher than second-place Washington and 40 points ahead of third-place New York. Last year, London was in second place, four points behind Washington and only two ahead of New York.
Investors believe that commercial real estate prices in London already have bottomed out. However, prices in the U.S. have not because of differences in accounting practices.
"London currently offers investors the advantage of a "re-priced" market," James Fetgatter, AFIRE chief executive, said. "The re-pricing began sooner than it did in other cities."
The survey of the association's nearly 200 members was conducted in the fourth quarter 2009. Survey respondents own more than $842 billion of real estate globally including $304 billion in the U.S.
The United States remained the country selected as the "most stable and secure real estate investment environment," although only 44 percent of the respondents said so. It was the first time the United State fell below 50 percent in the survey. That's down from 53 percent in 2008 and 57 percent in 2007.Germany was second with 21 percent.
"The financial crisis of the past year has obviously affected investors' perceptions of U.S. real estate as 'stable and secure,'" Fetgatter said. "However, it is also apparent that opportunity lies within this instability since the U.S., along with the UK, show substantially higher scoring for expected capital appreciation."
Fifty-one percent of respondents said the United States provided the best opportunity for price appreciation. According to various research firms, prices have fallen from their 2007 peaks by more than 40 percent.
Respondents saw the UK as the second-best country for capital appreciation, and China came in third.Two-third of the respondents said they planned to raise their U.S. investment in 2010, increasing equity investment by 62 percent and debt investment by 83 percent over 2009 levels.
Meanwhile, The Real Estate Round Table, which represents U.S. commercial real estate property owners, investors and professionals has been lobbying Congress to change the rules that subject some foreign owners to double taxation.
As for global investment, respondents said this year's equity investment would be 46 percent higher than in 2009 but 20 percent lower for debt investment.Among U.S. cities respondents chose Washington and New York, with San Francisco running a distant third. Boston made significant headway into fourth place, with Los Angeles falling one spot into fifth place.
Survey respondents said they favored investing in multifamily real estate as their preferred property type followed by office, industrial, retail and hotel properties trailing significantly.
"More notably, the gap between the top preference and the least-favored product, hotels, has not been this wide since 2000," Fetgatter said.
Half the survey respondents said they expect the U.S. commercial real estate market recovery by or before the fourth quarter, six months later than they projected in AFIRE's mid-year 2009 survey.
About a third of those surveyed said they were more optimistic about the U.S. real estate market than they were in June; 63 percent say their perspective has not changed and 6 percent say they are more pessimistic.
Respondents said their top favorite emerging markets are China, Brazil, India, Mexico, and Turkey. Brazil and India, which were the first- and second-ranked emerging markets in the 2009 survey, each receive half the votes of China.
London’s West End regained its ranking as the world’s most expensive office market in dollar terms last year as rents stabilized in the district while falling elsewhere, according to DTZ Holdings Plc.
The West End overtook Tokyo, Paris, Dubai and Hong Kong to secure the top spot, which it will hold until at least 2013, the London-based property adviser said in a report published today. The West End had been the costliest business district since at least 2002 until 2008, when it was placed fifth. Last year it cost $21,420 in rent, charges and taxes to provide office space for one worker in the district.
The global financial crisis has cut office rents worldwide, with demand for space waning as companies fired workers to save cash. That has reduced total occupancy costs in cities such as Singapore, where the decline coincided with a surge of new office space.
“With falling rents and more supply to choose from, the office market will offer tenants real value for money in the current climate,” Karine Woodford, head of real estate strategy at DTZ, said in the report. “We may see multinational companies taking advantage of this shift and relocating their operations accordingly.”
The cost of renting office space in Tokyo fell 8 percent to $20,960 last year, while costs for Midtown New York, Paris, Dubai and Hong Kong all fell at least 20 percent in dollar terms, DTZ said.
Costs in the U.K. capital’s main financial district, known as the City of London, are expected to rise an annual 6.7 percent in the five years to 2013, second to Hong Kong, where spending will advance 8.8 percent a year.
The five most expensive office locations in the world last year were the West End, central Tokyo, Washington, Hong Kong and Geneva, according to the report. The pound’s strength against the dollar contributed to the West End’s return to the top of the ranking.
The huge rise in commercial property sales volume brings total 2009 turnover in the region to 2.5 billion euros ($3.55 billion), broker CB Richard Ellis (CBRE) said, noting continued preference for "defensive properties in core locations".
Despite higher levels of activity in the second half of the year, CBRE described the 2009 market as "quiet" compared with recent years. Investment turnover in 2009 finished 75 percent lower than in 2008.
Central Europe accounted for 56 percent of CEE turnover in 2009, compared with 37 percent in 2008. Investors sought the relative security of assets in Central European capital city markets such as Prague, Warsaw and Budapest, which increased their share of total CEE turnover to 34 percent in 2009 from 21 percent in 2008.
Southeastern Europe's share of turnover fell more than half to 12 percent in 2009, while Eastern Europe's share dipped to 32 percent from 37 percent in 2009.Offices received the largest share of investor attention for most of 2009, grabbing 44 percent of the market versus 31 percent for retail and 12 percent for industrial property. Hotels accounted for 8 percent of transactions.
Both prime yields and prime capital values were relatively stable in CEE in the latter part of 2009, CBRE said, with more evidence of transactions closing at or near quoted prime yields in recent months.
"The fact that prime yields fell in certain Western European markets in H2 2009 has bolstered belief that prime yields have reached highs in most CEE markets," Pavel Schanka, Director of CEE Capital Markets said.
"Despite some promising signs at the prime end of the market, value declines are still a reality at this point in non-prime segments in most CEE property investment markets, and are likely to remain so in 2010."
London surged as the top destination for commercial real estate investment, beating out Washington D.C. and leaving New York in the dust, according to a recent survey by the Association of Foreign Investors in Real Estate (AFIRE).
London's score was 31 points higher than second-place Washington and 40 points ahead of third-place New York. Last year, London was in second place, four points behind Washington and only two ahead of New York.
Investors believe that commercial real estate prices in London already have bottomed out. However, prices in the U.S. have not because of differences in accounting practices.
"London currently offers investors the advantage of a "re-priced" market," James Fetgatter, AFIRE chief executive, said. "The re-pricing began sooner than it did in other cities."
The survey of the association's nearly 200 members was conducted in the fourth quarter 2009. Survey respondents own more than $842 billion of real estate globally including $304 billion in the U.S.
The United States remained the country selected as the "most stable and secure real estate investment environment," although only 44 percent of the respondents said so. It was the first time the United State fell below 50 percent in the survey. That's down from 53 percent in 2008 and 57 percent in 2007.Germany was second with 21 percent.
"The financial crisis of the past year has obviously affected investors' perceptions of U.S. real estate as 'stable and secure,'" Fetgatter said. "However, it is also apparent that opportunity lies within this instability since the U.S., along with the UK, show substantially higher scoring for expected capital appreciation."
Fifty-one percent of respondents said the United States provided the best opportunity for price appreciation. According to various research firms, prices have fallen from their 2007 peaks by more than 40 percent.
Respondents saw the UK as the second-best country for capital appreciation, and China came in third.Two-third of the respondents said they planned to raise their U.S. investment in 2010, increasing equity investment by 62 percent and debt investment by 83 percent over 2009 levels.
Meanwhile, The Real Estate Round Table, which represents U.S. commercial real estate property owners, investors and professionals has been lobbying Congress to change the rules that subject some foreign owners to double taxation.
As for global investment, respondents said this year's equity investment would be 46 percent higher than in 2009 but 20 percent lower for debt investment.Among U.S. cities respondents chose Washington and New York, with San Francisco running a distant third. Boston made significant headway into fourth place, with Los Angeles falling one spot into fifth place.
Survey respondents said they favored investing in multifamily real estate as their preferred property type followed by office, industrial, retail and hotel properties trailing significantly.
"More notably, the gap between the top preference and the least-favored product, hotels, has not been this wide since 2000," Fetgatter said.
Half the survey respondents said they expect the U.S. commercial real estate market recovery by or before the fourth quarter, six months later than they projected in AFIRE's mid-year 2009 survey.
About a third of those surveyed said they were more optimistic about the U.S. real estate market than they were in June; 63 percent say their perspective has not changed and 6 percent say they are more pessimistic.
Respondents said their top favorite emerging markets are China, Brazil, India, Mexico, and Turkey. Brazil and India, which were the first- and second-ranked emerging markets in the 2009 survey, each receive half the votes of China.
London’s West End regained its ranking as the world’s most expensive office market in dollar terms last year as rents stabilized in the district while falling elsewhere, according to DTZ Holdings Plc.
The West End overtook Tokyo, Paris, Dubai and Hong Kong to secure the top spot, which it will hold until at least 2013, the London-based property adviser said in a report published today. The West End had been the costliest business district since at least 2002 until 2008, when it was placed fifth. Last year it cost $21,420 in rent, charges and taxes to provide office space for one worker in the district.
The global financial crisis has cut office rents worldwide, with demand for space waning as companies fired workers to save cash. That has reduced total occupancy costs in cities such as Singapore, where the decline coincided with a surge of new office space.
“With falling rents and more supply to choose from, the office market will offer tenants real value for money in the current climate,” Karine Woodford, head of real estate strategy at DTZ, said in the report. “We may see multinational companies taking advantage of this shift and relocating their operations accordingly.”
The cost of renting office space in Tokyo fell 8 percent to $20,960 last year, while costs for Midtown New York, Paris, Dubai and Hong Kong all fell at least 20 percent in dollar terms, DTZ said.
Costs in the U.K. capital’s main financial district, known as the City of London, are expected to rise an annual 6.7 percent in the five years to 2013, second to Hong Kong, where spending will advance 8.8 percent a year.
The five most expensive office locations in the world last year were the West End, central Tokyo, Washington, Hong Kong and Geneva, according to the report. The pound’s strength against the dollar contributed to the West End’s return to the top of the ranking.
Friday, 22 January 2010
Demand for City Offices Rises
An increase in commercial letting activity at the end of last year led to a decline in empty London office space for the first time in two years. Rents in the region were boosted as a result and on Wednesday the Royal Institution of Chartered Surveyors reported that rents had stabilised. Additionally, the forecasts of a number of leading property consultancies support the view that the London market is at the forefront of the property recovery.
Sunday, 17 January 2010
UK Houses are Less Affordable Now than in 1950's
Houses are less affordable than 50 years ago although the quality of homes has improved, according to the Halifax.The lender, now owned by Lloyds Banking Group, said that over the last five decades UK house prices have risen by 2.7% a year, allowing for inflation.This was above the 2% annual increase in real earnings over the same period.
Prices increased the most in the last decade, and separately lenders warned that lending to first-time buyers would be constrained for "some time to come".
Own or rentThe Halifax study considered the state of the market in the half-century from 1959 to 2009."The last 50 years have witnessed some remarkable developments in the UK housing market," said Martin Ellis, chief economist at the Halifax.
Margaret Thatcher was voted in as MP for Finchley in 1959, and it was her government's Right to Buy policy when she was prime minister in the 1980s that brought about one of the most significant shifts in the market.
Owner-occupation in the UK accelerated the most in the 1980s. The Halifax figures show that 43% of homes were owned by their residents in 1961, compared with 68% in 2008.
Privately rented homes fell from 33% to 14% over the same period, although it has crept up in the last 20 years or so, probably owing to the increase in student numbers.
Boom time
Four big house price booms have occurred in the last 50 years, the research concluded. They were: 1971-73, 1977-80, 1985-89, and 1998-2007.Over the last 50 years, the biggest rise in prices was in greater London, whereas the smallest increase was in Scotland. This might have been mitigated, to a degree, by an increase in homes with two incomes rather than just one.
In a sign that buyers might be getting more for their money now, the proportion of households without an inside toilet fell from 14% in 1960 to 0.2% in 1996.A basic hot water supply features in all homes, unlike 22% of them in 1967, and central heating has also become the norm.
Although getting on the property ladder might have become more difficult, the rise in prices would prove that homes have been a good long-term investment for some people.
The average home has almost quadrupled in value, having risen by 273% since 1959 in real terms, the Halifax found. In today's money, a typical home would have cost about £43,000 in 1959.
Bill McClintock, chairman of the Property Ombudsman, has been in the housing business for 50 years and said he bought his first home - a four-bedroom house in Winchester - for £3,400 in 1965."Even back in the 60s people aspired to own their own home," he said.
First-time buyers
House building levels have fallen, but the proportion of households that were occupied by just one person rose from 19% in 1971 to 33% in 2009, the Halifax said.
Modern houses are different to styles 50 years ago.This is likely to have added to pressure on affordability of smaller homes for first-time buyers.
The Council of Mortgage Lenders (CML) has said that the proportion of the average first-time borrower's income spent on mortgage interest payments dropped in November 2009 to its lowest level for six years, at 14.4%.However, the deposit demanded by lenders remained high - typically at 25%."The requirement for large deposits is likely to continue to constrain the market - particularly first-time buyers - for some time to come," the CML said.
Meanwhile, the National Association of Estate Agents said that there had been a seasonal slowdown in sales in December but a recovery over the last 12 months. However, it still wanted more assistance from the government to help prop up the housing market."Thousands of potential buyers are still in need of help and further, more robust, action is needed to make mortgages more available," said NAEA president Gary Smith.
Prices increased the most in the last decade, and separately lenders warned that lending to first-time buyers would be constrained for "some time to come".
Own or rentThe Halifax study considered the state of the market in the half-century from 1959 to 2009."The last 50 years have witnessed some remarkable developments in the UK housing market," said Martin Ellis, chief economist at the Halifax.
Margaret Thatcher was voted in as MP for Finchley in 1959, and it was her government's Right to Buy policy when she was prime minister in the 1980s that brought about one of the most significant shifts in the market.
Owner-occupation in the UK accelerated the most in the 1980s. The Halifax figures show that 43% of homes were owned by their residents in 1961, compared with 68% in 2008.
Privately rented homes fell from 33% to 14% over the same period, although it has crept up in the last 20 years or so, probably owing to the increase in student numbers.
Boom time
Four big house price booms have occurred in the last 50 years, the research concluded. They were: 1971-73, 1977-80, 1985-89, and 1998-2007.Over the last 50 years, the biggest rise in prices was in greater London, whereas the smallest increase was in Scotland. This might have been mitigated, to a degree, by an increase in homes with two incomes rather than just one.
In a sign that buyers might be getting more for their money now, the proportion of households without an inside toilet fell from 14% in 1960 to 0.2% in 1996.A basic hot water supply features in all homes, unlike 22% of them in 1967, and central heating has also become the norm.
Although getting on the property ladder might have become more difficult, the rise in prices would prove that homes have been a good long-term investment for some people.
The average home has almost quadrupled in value, having risen by 273% since 1959 in real terms, the Halifax found. In today's money, a typical home would have cost about £43,000 in 1959.
Bill McClintock, chairman of the Property Ombudsman, has been in the housing business for 50 years and said he bought his first home - a four-bedroom house in Winchester - for £3,400 in 1965."Even back in the 60s people aspired to own their own home," he said.
First-time buyers
House building levels have fallen, but the proportion of households that were occupied by just one person rose from 19% in 1971 to 33% in 2009, the Halifax said.
Modern houses are different to styles 50 years ago.This is likely to have added to pressure on affordability of smaller homes for first-time buyers.
The Council of Mortgage Lenders (CML) has said that the proportion of the average first-time borrower's income spent on mortgage interest payments dropped in November 2009 to its lowest level for six years, at 14.4%.However, the deposit demanded by lenders remained high - typically at 25%."The requirement for large deposits is likely to continue to constrain the market - particularly first-time buyers - for some time to come," the CML said.
Meanwhile, the National Association of Estate Agents said that there had been a seasonal slowdown in sales in December but a recovery over the last 12 months. However, it still wanted more assistance from the government to help prop up the housing market."Thousands of potential buyers are still in need of help and further, more robust, action is needed to make mortgages more available," said NAEA president Gary Smith.
Sunday, 27 December 2009
Property Investment and Recession
There is nothing new about recessions – they have been with us since time immemorial. They form part of what is termed the ‘economic cycle’ – periods of growth and decline which have happened throughout history. These have an effect on all markets and industries including property.
A successful property investing strategy involves buying at the bottom of the cycle, and therefore maximising the financial return. But how does an investor identify this critical moment which determines success or failure for the property investor?
Most economists agree that the economic cycle consists of five distinct stages, each of which flows into the next. These are defined as the peak, contraction, recession, recovery and prosperity. At the peak of a boom property is considered to be overvalued. Credit providers are heavily burdened with debt. As the contraction stage starts, sources of credit dry up, and property sales grind inevitably to a halt.
The price of property and shares is at a low ebb and credit is difficult, if not impossible, to obtain. Recovery commences when credit facilities again become available. At this point institutional investors become involved in the market, moving rapidly to purchase undervalued property and shares. The next stage is prosperity. Prices rise once more, the workforce’s salaries rise and credit providers become more amenable to risk.
So when was the last time we experienced this economic cycle? The last significant correction in the UK housing market occurred in 1991. At that time, banks and other lenders frequently offered 100% mortgages – yes, I know it’s hard to believe but it really did happen. This more-than-generous financing fed the strong desire to own property which inevitably led to the peak of the housing ‘bubble’.
But as the economy slowed a total of 75,540 repossessions followed, partly due to the burden of sub-prime debt – does that sound familiar? This represented the highest recorded in any one year (so far) and spelt obvious heartbreak and misery to those concerned. The market did not seriously begin to recover until 1994. At that time the UK economy was registering 4.2% GDP growth, the highest level for six years. The sustained economic growth, combined with rising incomes, meant people could afford larger mortgages. Consequently, demand for housing rose.
Most people view property as essentially a stable asset, despite the peaks and troughs that occur at the various stages of the economic cycle. Unlike investment in shares, a property owner has a tangible asset of bricks and mortar. A constantly expanding population will always need somewhere to live, and therefore there will always be demand.
Knowledge of economic cycles and the property market means one can begin to predict the upswing in a market. The current financial crisis has strong parallels with that of the 1991 crash. The beginning can be traced to early 2007, when the total value of sub prime mortgages was estimated at US$1.3 trillion. Rising property values resulted in lenders taking more risks. The number of credit providers began to collapse under the weight of defaulted loans, with the most notable example being the once mighty Lehman Brothers. The scale of the problem was becoming horribly clear. As the flow of credit between banks dried up, the knock on effect included reduced lending to consumers and thus a slowdown in the housing market. Once interest rates are low enough, credit flow becomes liquid once again. At this point institutional investors enter the market, confidence returns and the upswing begins.
Usually upswings begin in the same place the downturn began. The US housing market is therefore key – as soon as it begins to pick up then it can be seen as a sign for the rest of the world. Standard & Poor, the ratings and analytical company who produce the US Case-Schiller housing index, believes the market will reach the very bottom by October 2009. It also states that investors should start to consider purchasing property as credit becomes more available.
Global property investors should also consider countries and regions which have not suffered so savagely in the current economic downturn. Central and Eastern Europe saw a slowing of their economies and Bulgaria in particular has been unaffected by toxic debts.
But there inevitably remains a strong element of doubt. Who can tell whether the London property market has hit its lowest point? Unemployment looks certain to increase, with a consequent rise in repossessions.
Investment in property carries an element of risk. An assessment of the economic cycle may reduce this, but it cannot be expected to eliminate it.
A successful property investing strategy involves buying at the bottom of the cycle, and therefore maximising the financial return. But how does an investor identify this critical moment which determines success or failure for the property investor?
Most economists agree that the economic cycle consists of five distinct stages, each of which flows into the next. These are defined as the peak, contraction, recession, recovery and prosperity. At the peak of a boom property is considered to be overvalued. Credit providers are heavily burdened with debt. As the contraction stage starts, sources of credit dry up, and property sales grind inevitably to a halt.
The price of property and shares is at a low ebb and credit is difficult, if not impossible, to obtain. Recovery commences when credit facilities again become available. At this point institutional investors become involved in the market, moving rapidly to purchase undervalued property and shares. The next stage is prosperity. Prices rise once more, the workforce’s salaries rise and credit providers become more amenable to risk.
So when was the last time we experienced this economic cycle? The last significant correction in the UK housing market occurred in 1991. At that time, banks and other lenders frequently offered 100% mortgages – yes, I know it’s hard to believe but it really did happen. This more-than-generous financing fed the strong desire to own property which inevitably led to the peak of the housing ‘bubble’.
But as the economy slowed a total of 75,540 repossessions followed, partly due to the burden of sub-prime debt – does that sound familiar? This represented the highest recorded in any one year (so far) and spelt obvious heartbreak and misery to those concerned. The market did not seriously begin to recover until 1994. At that time the UK economy was registering 4.2% GDP growth, the highest level for six years. The sustained economic growth, combined with rising incomes, meant people could afford larger mortgages. Consequently, demand for housing rose.
Most people view property as essentially a stable asset, despite the peaks and troughs that occur at the various stages of the economic cycle. Unlike investment in shares, a property owner has a tangible asset of bricks and mortar. A constantly expanding population will always need somewhere to live, and therefore there will always be demand.
Knowledge of economic cycles and the property market means one can begin to predict the upswing in a market. The current financial crisis has strong parallels with that of the 1991 crash. The beginning can be traced to early 2007, when the total value of sub prime mortgages was estimated at US$1.3 trillion. Rising property values resulted in lenders taking more risks. The number of credit providers began to collapse under the weight of defaulted loans, with the most notable example being the once mighty Lehman Brothers. The scale of the problem was becoming horribly clear. As the flow of credit between banks dried up, the knock on effect included reduced lending to consumers and thus a slowdown in the housing market. Once interest rates are low enough, credit flow becomes liquid once again. At this point institutional investors enter the market, confidence returns and the upswing begins.
Usually upswings begin in the same place the downturn began. The US housing market is therefore key – as soon as it begins to pick up then it can be seen as a sign for the rest of the world. Standard & Poor, the ratings and analytical company who produce the US Case-Schiller housing index, believes the market will reach the very bottom by October 2009. It also states that investors should start to consider purchasing property as credit becomes more available.
Global property investors should also consider countries and regions which have not suffered so savagely in the current economic downturn. Central and Eastern Europe saw a slowing of their economies and Bulgaria in particular has been unaffected by toxic debts.
But there inevitably remains a strong element of doubt. Who can tell whether the London property market has hit its lowest point? Unemployment looks certain to increase, with a consequent rise in repossessions.
Investment in property carries an element of risk. An assessment of the economic cycle may reduce this, but it cannot be expected to eliminate it.
Tuesday, 22 December 2009
Property Investment
Investing in property is not just finding a place that a person could call home. Over the years, investing in property and real estate has become more of an investment vehicle, with the real estate market providing a lot of opportunities to the investors wanting to make big capital gains. In recent times, many investors are showing their interest in the UK property market, with the UK economy past the worst of recession and genuine growth near at hand. In recent months, there has been an increase in sales in the Central London property market; the prices of prime properties in London have also increased. As of now, property investment London is making a lot of sense.
Having taken the decision to invest in the London property market, potential investors would need to be clear about some other details as well. They would need to decide on the specific sectors in which they would want to invest their money. They could buy properties in the individual house market or go for new property developments London. Over the last couple of years, these two sectors have performed strongly; capital has appreciated the right way and the property owners are also able to find tenants quite easily.
The next step in property investment London is to identify central London estate agents of repute. These experts and professionals can offer advice on prime locations for investing, introduce the investors to the developers, facilitate loans from banks and finance houses, and even help owners maintain their properties to maximise the capital and letting value of the same. The investors, wanting the services of property tax accountants and solicitors, can also depend on their estate agents to address this need.
There are some well-established real estate agents that can help you with property investment London. Some of these come with full fledged web sites and so accessing their services is that much easier and hassle free. These real estate agents would acquaint you with the best Central London properties and assist you in every possible way. One could say that they have a broader perspective on the London property market and you can make the most of their experience and expertise to invest in the best properties in the area. So, whether you are in need of family houses in Central London that you can sublet or are interested in new developments in the area, the right kind of real estate agents would help you find just the place you are looking for.
Having taken the decision to invest in the London property market, potential investors would need to be clear about some other details as well. They would need to decide on the specific sectors in which they would want to invest their money. They could buy properties in the individual house market or go for new property developments London. Over the last couple of years, these two sectors have performed strongly; capital has appreciated the right way and the property owners are also able to find tenants quite easily.
The next step in property investment London is to identify central London estate agents of repute. These experts and professionals can offer advice on prime locations for investing, introduce the investors to the developers, facilitate loans from banks and finance houses, and even help owners maintain their properties to maximise the capital and letting value of the same. The investors, wanting the services of property tax accountants and solicitors, can also depend on their estate agents to address this need.
There are some well-established real estate agents that can help you with property investment London. Some of these come with full fledged web sites and so accessing their services is that much easier and hassle free. These real estate agents would acquaint you with the best Central London properties and assist you in every possible way. One could say that they have a broader perspective on the London property market and you can make the most of their experience and expertise to invest in the best properties in the area. So, whether you are in need of family houses in Central London that you can sublet or are interested in new developments in the area, the right kind of real estate agents would help you find just the place you are looking for.
Wednesday, 7 October 2009
UK Pubs For Sale: Property Investment And Change of Use
UK Pub Conversions- Change of Use
6 pubs a week are calling last orders for the last time with the asking price of the buildings low enough to tempt property developers as well as other retailers. Planning laws on change of use may restrict development to residential property on pubs in certain areas; a city centre pub is more likely to gain permission for conversion to a residential property than the only pub in the village, and some pubs are advertised for sale with full change of use/ planning.
Agents at London-based Paramount Investments said the company would prefer to sell to a new pub landlord but would consider other buyers. Paramount managing director Mark Greig said: “Not all pubs which close down are redeveloped as housing. A lot of them reopen again as pubs or as other businesses.” He added: “Falling property prices are creating tremendous bargains within the pub market for licensees and other entrepreneurs”
So if residential conversion is not available, what changes can be made to the use of the pub for other businesses?
The following classes of use for England are set out in the Town and Country Planning Order 1987. Pubs are in the A4 ‘Drinking Establishment’ class, and can be converted without permission being sought to any of the following;
A1, Shops, retail warehouses, hairdressers, undertakers, travel and ticket agencies, post offices, pet shops, sandwich bars, showrooms, domestic hire shops, dry cleaners and funeral directors
A2 Financial and professional services - Banks, building societies, estate and employment agencies, professional and financial services and betting offices.
A3 Restaurants and cafés - For the sale of food and drink for consumption on the premises - restaurants, snack bars and cafes
Paramount managing director Mark Greig said “Pubs often appeal to retailers because there is a natural crossover in space requirements. As pubs are often around 4,000 sq ft (370 sq m) and have a floor-to-ceiling height of around 8 ft (2.4 m), the sales space is ideal. Furthermore, because pubs also need both basement space for heavy duty equipment and space for deliveries, retailers often find they have ready-made sites for storage.”
UK Pub Sales Agents: Paramount Investments are specialists in the sales and leasing of UK pubs, including freehold pubs, leasehold pubs, inns, public houses, pub tenancies and managed houses.
For further details please contact the investments team on 020 7644 2333
Web: Paramount Investments
Blog: UK Pubs for Sale
Search: UK Pub Sales
6 pubs a week are calling last orders for the last time with the asking price of the buildings low enough to tempt property developers as well as other retailers. Planning laws on change of use may restrict development to residential property on pubs in certain areas; a city centre pub is more likely to gain permission for conversion to a residential property than the only pub in the village, and some pubs are advertised for sale with full change of use/ planning.
Agents at London-based Paramount Investments said the company would prefer to sell to a new pub landlord but would consider other buyers. Paramount managing director Mark Greig said: “Not all pubs which close down are redeveloped as housing. A lot of them reopen again as pubs or as other businesses.” He added: “Falling property prices are creating tremendous bargains within the pub market for licensees and other entrepreneurs”
So if residential conversion is not available, what changes can be made to the use of the pub for other businesses?
The following classes of use for England are set out in the Town and Country Planning Order 1987. Pubs are in the A4 ‘Drinking Establishment’ class, and can be converted without permission being sought to any of the following;
A1, Shops, retail warehouses, hairdressers, undertakers, travel and ticket agencies, post offices, pet shops, sandwich bars, showrooms, domestic hire shops, dry cleaners and funeral directors
A2 Financial and professional services - Banks, building societies, estate and employment agencies, professional and financial services and betting offices.
A3 Restaurants and cafés - For the sale of food and drink for consumption on the premises - restaurants, snack bars and cafes
Paramount managing director Mark Greig said “Pubs often appeal to retailers because there is a natural crossover in space requirements. As pubs are often around 4,000 sq ft (370 sq m) and have a floor-to-ceiling height of around 8 ft (2.4 m), the sales space is ideal. Furthermore, because pubs also need both basement space for heavy duty equipment and space for deliveries, retailers often find they have ready-made sites for storage.”
UK Pub Sales Agents: Paramount Investments are specialists in the sales and leasing of UK pubs, including freehold pubs, leasehold pubs, inns, public houses, pub tenancies and managed houses.
For further details please contact the investments team on 020 7644 2333
Web: Paramount Investments
Blog: UK Pubs for Sale
Search: UK Pub Sales
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