INVESTING IN OUR CLIENTS FUTURE - A Residential Investment Opportunity

22.06.2015 John Parky Share this post  Share to Twitter Share to Facebook Share to Google+

With banks paying so little in interest on savings, and the Chancellor George Osbourne allowing us to release our pensions, there has been a huge upsurge in enquiries from potential Landlords looking for the next best thing. Availability has become a key issue with demand far outweighing supply in recent months, and with this has come the inevitable rise in sale prices.

During the same period, rental demand and prices have continued to rise in relation to the market leaving Alastair Fitchett, Greenwoods Lettings Manager, to broaden his search and find suitable opportunities to offer to his existing Landlords who are keen to expand their portfolios but also for the growing band of new Landlords who are looking to invest their money more effectively.

“I receive between 2 and 5 emails a day offering me investment opportunities the length and breadth of the country. Most of them are deleted immediately, the rest are scrutinised to see if they fit the criteria we have set out to meet our clients expectations. Even then, most don’t get past this level of scrutiny but every now and then, one will stand out.”

Alastair explains that one such opportunity did just that recently. Bridgewater House in Worcester, near Gloucester, is a former office block undergoing a full transformation to deliver 70 self-contained apartments comprising of studio, one bed and two bed units with prices starting from just £74,950. Redeveloping former office or commercial buildings is very much ‘on trend’ and the demand for them is growing all the time. You only need to see how the centre of Bristol has changed in the last 5 years, with prices for similar apartment complexes topping even the most optimistic of expectations, to understand the enormous potential that such developments can deliver.

So why is Bridgewater House so different from the rest?

 

“Firstly, the development was not being offered on the open market, it was only available direct from the developer. This meant the headline prices were attractive and the potential yield for Landlords was very appealing. I also felt that the apartments were undervalued against similar property in the local area, creating a real possibility of exceptional equity growth in the first few years. In fact, buyers have already seen a 10% hike in value before they have even completed their purchase as the sale prices for remaining units have just been adjusted upwards to reflect the level of interest they are now receiving.”

Whilst Greenwoods only got involved in the site in early June, in the space of just 14 days a further 15 units have been reserved. Availability is now limited but there are still sound opportunities for canny investors.

What has come out of our involvement is something even more exciting for the future. Our successful partnership with the developer has led to us signing a contract with them to enable us to offer ‘pre-market’ or ‘off-plan’ opportunities at a selection of their upcoming developments in a number of major city locations around the UK. Two of those locations are Birmingham and Liverpool, both highlighted recently as hot spots for property investors.

“These will not be offered direct to the public during the pre-marketing period as the developer is keen to attract serious and professional Landlords to take up a proportion of the stock. In return for the early commitment they will again be offering heavily discounted deals. As such, there will be three potential options for investors, all of which will produce exceptional returns and yields”

The Three options:

  1. Above market rental yields
  2. Above market equity growth
  3. Potential to re-sell after a short period with an above average profit margin

For details on the remaining available apartments in Bridgewater House, or to be added to the advance ‘pre-market’ notification list for future development offerings, please contact Alastair on 0117 9777 671 or email him af@greenwoodsonline.co.uk

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