Property Investor

Look who’s actively looking for more UK Investments

A recent article from BBC News Business caught my attention.

It is very interesting that Warren Buffett, an 88-year-old Veteran Investor has said that he’s actively looking to make large investments into both the UK and the European economies, despite all the uncertainty surrounding the future relationship.

Buffett has built up a reputation over the years for being an extremely well-measured investor, not least because of the vast amount of information that he gathers on a company/ sector before actually investing in it.

His announcement at this years Berkshire Hathaway Annual Shareholders Event could, therefore, be seen as a positive sign for investor confidence, especially amongst the negative headlines we have grown used to seeing day-in-day-out.

Regards,

Manny Esezobor

Bretts Property Rants

The North and South Divide in the UK

Video Transcription:

Hi, guys. Brett’s property rant. I was just reading an article about the north-south divide in the UK, between the southern counties, London and the southern counties, and the northern counties. Just talking about how that’s changing now. Now Wales actually kinda doesn’t include it. That pattern is changing. I think, to be fair, we’re gonna see a lot more of that. I’m saying right now, and I’ve been saying for the last couple of years, we’ve sort of backed away from selling in a lot of areas.

I just don’t want to sell ’em ’cause I think long term we’re not really gonna see the growth that you would expect from that property. What’s happening is the fundamentals are moving into the cities, into the major cities. That’s more where our investment focus is and that’s where more your investment focus is, but what that means is that rather than being a north-south divide, I think what you’re gonna start to see is… I think there will certainly be a north-south divide, but I think the other side of it is that there’s going to be a cities and suburbs divide. If you’re looking prediction-wise, give it, you know, maybe 10 years, 20 years, but certainly within a generation, I think we’re gonna start to see the suburbs becoming quite desolate. It’s almost like the Hollywood movies with the tumbleweed rolling down the town that used to have hundreds of people in it. I think that’s gonna start to happen a lot more now.

What you’re gonna find is your rents won’t go up. Your capital values won’t go up. That’s going to be the initial phases of it. As it goes further and further on and it becomes less and less attractive an area, then what you’re gonna see is actually it’s gonna get harder and harder to rent your property out. It might still be fine for owner occupies, but actually, if you’re gonna rent the property out, you’ve gotta be careful. That’ll be the next stage of it. I really don’t think you want to be involved in an area when that hits. Cities, what you’re gonna see is more and more, they’re gonna take over as the place to invest. All right, guys. Have a great day. Live with passion. See ya.

Brexit

So Many Opinions, Not Enough Solutions

What will it be Brexit DEAL or Brexit NO DEAL…Stay tuned

Video Transcription:

Hey guys, so I just thought I’d give you a brief proper rant. So I thought I’d give you an update on Brexit. And you know, it’s interesting with Brexit. I don’t know what’s gonna happen, and I don’t think anyone does, really. I mean, it’s certainly looking like the Labor and Jeremy Corbyn and Theresa May are trying to thrash out a deal.

But it seems to be that they’re doing this not at the behest of their party. And I think that the problem really here is that you just have 50 different people have 50 different views on how things should be done and nobody’s prepared to give way. I

mean, everyone feels like they’re not being held accountable to anyone. So in other words, they’re not worried what their electorate thinks, they’re not worried. They’re more concerned about “How can I get outta this? How can I gain the most politically from this?” and I think that’s one of the unfortunate things for me. Is that it’s kind of, it’s really become, it’s a political football and nobody really wants to hold on to.

May has to, she doesn’t really have a choice. Corbyn has to, doesn’t really have a choice. And really, I think both of them realize that their parties are divided. So they’re not actually one party, there’s a number of different parties and there are not just two sides. There are multiple sides. And there’s a lot of players in the background that are just hanging back, almost waiting for the leftovers to pounce.

It’s almost like they’re hanging back and once they realize that May is dead, Corbyn’s dead, right when they’ll jump in and take over and unfortunately I think that’s what’s gonna happen. Is that May and Corbyn, their reputations and their ability to lead and govern are almost defunct. And I know she’s still got numbers and I know she’s still got that but I really think that they’ve lost the people they serve. And arguably, have they really been serving the people that they’re supposed to serve? I would say that politics has not been that way for a long time and I think that’s the unfortunate thing. And that’s the real victim here, is you and I who vote, you and I who they’re supposed to be representing. And really I think what we’ve lost sight of is, as human beings, we want to live a life free of government intervention and free to do what we need to do.

But what’s happening is more and more the governments are coming into our lives and saying “you can’t do this, you can’t do that”. And I’ve mentioned totalitarianism, it just seems to be, you know read that 1984 book, as I have mentioned a few times now. That’s where we’re heading. And it’s scary that George Orwell wrote something that depicts life unfortunately pretty well. I mean yes, we have freedoms, and yes, we have apparent freedoms. But on the other hand, it’s like the internet has opened up the world to us, but politics is closing it.

And I think, my theory around politics is: politics has been disrupted massively and I think this is the key here. Politics is being disrupted. They have no playbook for this and I think that’s the key here. They don’t have a playbook and with not having a playbook what it actually means is that they’re screwed. They’re making it up as they go along and they’re doing it really poorly. If you’re in an issue that’s being disrupted you need a strong leader to set the direction and stay that course.

And they need to manage their staff and they need to do all that and if they do that they generally are gonna get through. If they’re not they’re going to become more and more caked, defunct and eventually go into liquidation. Well, let’s face it. The government, it might as well be in company voluntary arrangement with where their credit is because they’re borrowing so much money. I mean, the US is the worst of them, by far the worst. Yeah, don’t even start on the US. But anyway, coming back to Brexit.

So what do I think is going to happen to Brexit. I mean, we got until June, so got a little bit of time but nothing really seems to be happening. In order for May and Corbyn to survive, they need to come up with a deal that they will back and get through. And it’ll probably get through by the thinnest of margins but it will get through. The other alternative is that come June 30 that EU will feel a bit antsy and say, “Well, see you later, guys, we’re not extending it. Get out of here.” and we have a no-deal Brexit. Which I don’t think is going to be as bad as many people thought because it’s been… The bad has been. And it has been a slow degradation.

I think that’s one of the keys. So, Brexit, it’s a dog’s breakfast right now and it doesn’t look like it’s gonna get sorted anytime soon. I’m hoping we get a deal, whatever that deal is and it goes through, just so we can get on with the future and get on with working on how we can get lifestyle and real social issues sorted. And some of those social issues are being created by Brexit. The stats don’t work, the stats are absolute rubbish.

The real life’s data here but being touted in the media is the hype and the hyperbole and it’s not right. But anyway, that’s the situation we live in. Right, guys, remember: like, share. I’m coming to you multiple time every week with videos and feel free to comment. I’ll get back to you on the comments as soon as I can. I’m really interested in having conversations, getting your thoughts.

All right, guys, have a great day. Live with passion, see ya.

Property Investment Manchester

For property investment, Manchester is hard to beat

Six reasons you will want to invest in Manchester

Manchester is a highly desirable place to work, live and play. It is being developed at a faster pace than most cities in the UK and is attracting high numbers of businesses and young professionals. For those considering property investment, Manchester should be high on your list of UK locations.

Here are six factors that underpin the potential of investing in Manchester property.

1.    Manchester is a mecca for retail and leisure enthusiasts

Manchester has some of the best retail and leisure facilities in the UK. These range from the world-renowned intu Trafford Centre, to the Arndale, Exchange Square and Market Street, and fantastic boutique shopping districts around the city.

For the culturally minded, there are more than 30 museums and galleries to visit. For fresh air enthusiasts, Manchester is a stone’s throw from several of the UK’s most beautiful rural areas.

Manchester is also the home of two of Europe’s best football teams (Manchester United and Manchester City), and Old Trafford is the home ground of Lancashire Cricket Club.

2.    Manchester is the place for exceptional education

With hundreds of schools in the city region and 25 primary and secondary schools rated as outstanding within three miles of the city centre, parents are spoiled for choice for their children.

There are also 20 higher and further education establishments. The total student population is one of the largest in the UK – presenting an exceptional opportunity for investors in student accommodation.

3.    Manchester’s tremendous transport

Manchester benefits from road and rail networks that connect the city to all corners of the UK. When HS2 services start running, London will be only an hour away.

The Manchester region is served by regular bus services, and rail and Metrolink services.

Manchester Airport is the North’s only major international gateway. It serves more than 22 million passengers each year – a number that is expected to rise to 50 million by 2030.

4.    Manchester is a city open for business

The city region houses a population of 2.8 million in its 10 metropolitan boroughs – the largest UK city region outside of London.

With a GVA of £63 billion, Manchester’s economy is extremely diverse with major employment sectors including:

  • Financial
  • Advanced manufacturing
  • Life science and healthcare
  • Energy and environment
  • Creative, digital and technology

Many major companies are located here (including names such as Barclays, BNY Mellon, Cargill, Heinz, BAE Systems, the BBC, Google, and IBM) attracted by the city and its stock of well-educated workers. The rate of start-ups here is also strong.

Consequently, the growth of more than 2% per year in employment that Manchester has experienced in recent years is expected to continue.

5.    Regeneration and development are booming in Manchester

Manchester is the beating heart of the Northern Powerhouse, and billions have been spent and are being spent on regeneration and development. Key projects include:

  • The Manchester Enterprise Zone (business and office space, manufacturing, health, and bioscience facilities)
  • The Corridor (now the UK’s largest academic campus)
  • Manchester Science Park (a world-class science and technology hub)
  • Spinningfields (mixed-use development in the heart of the city centre, providing space for mostly financial and professional services firms)

Regeneration projects include:

  • NOMA (an £800 million project)
  • St John’s Quarter (a mixed-use development including 2,500 new homes)
  • Ancoats (developed with £1 billion from the owners of Manchester City FC)
  • Greengate (2,000 apartments to be completed in the next 15 years)
  • Middlewood Locks (A £700 million mixed-use development)
  • Kampus (200 new apartments, and independent bars and restaurants)

The latest Deloitte Crane Survey forecasts more residential units will be delivered in the next three years than in the previous 10 combined.

6.    Manchester – where the population just keeps growing

Manchester’s city population has grown by 6% in the last three years – three times the national average. With more businesses moving to the region, HS2 soon to run services here, and a young, diverse and well-educated population, this rate of growth is set to continue.

Summing up

World-class retail, leisure and education make Manchester a good place to live and learn. The incredible transport links and a young and vibrant population make it a good place to do business. Add it all together, and Manchester is a great place for property investment.

You can learn more about the best property investment opportunities in Manchester by contacting the team at Gladfish at +44 207 923 6100.

Live with passion,

Brett Alegre-Wood

brexit

Property News – Brexit Update

Video Transcription:

Hey guys, so Bretts Property Rants. So, I thought I’d jump into the Brexit thing. I’ve actually had a couple of, break for a couple of weeks on it. Because to be fair there was so much happening and nothing happening at all.

And I think, you know, just having had a couple of weeks break, not looking at anything, not actually reading the news, not even been interested in what’s been going on, just been letting it happen. You know, I was travelling and things like that. It’s interesting because I thought what I’d do is I’d come back, I published my book at the start of April, and what I realize now is that I have no idea what the next move is.

I mean, there’s plenty of ideas, there’s plenty of options. And, you know what? Somebody may win it, somebody may go, yes, that’s what we’re doing, and that may be the thing that happens. But the interesting thing is, there are so many different opinions with various bits of power but no one has a majority. No one has the ability to get one thing though, whatever that is.

And I think that’s gonna be the telling thing. I think, realistically, you know, it’s heading more and more like we could have a no Brexit, because I think the reality is in the absence of us being able to make a decision, we’ll be handing our sovereignty over to the EU, who could say, either, in or out, make a decision. And I think the problem is, the decision on out won’t be able to be made because all the stops, stoppers have been put in place.

And so the default will end up being we stay in. You know, the other alternative is that we keep fighting but the, you know, I mean, ’cause we can always retract the Article 50 and then re-invoke it. I mean, there’s nothing that says we can’t. But, you know, it’s amazing now to think that we’re in a position where no one party can win, nobody has the influence, nobody has the ability to, you know, I mean, there’s just a severe lack of communication.

I mean, I thought maybe May and Corbyn might have come up with something, but you know, the problem is, is that May is the Prime Minister, she’s not the party. And I think a lot of the party, you know, they’re not, they’re not siding with her now. You know, and often times the party whip would bring their party behind a decision that needs to be made. I think their whips probably need to be sacked ’cause they’re, they’re very ineffective right now.

So yeah, so it’s a bit of an interesting situation now. And I’ll keep monitoring it but I think, to be fair, right now there is no clear and definite way to look at it. I think anyone that says that they can and they know and this is what’s gonna happen, you know, I think they’re full of crap. I really don’t see, having spent a couple of hours just going through article after article and reading up on everything’s been going on, there’s no clear way.

You know, and whether the EU force our hand and say, no more extensions, so either in or out, I think that seems to be the most likely one now. I mean maybe May and Corbyn might get together and get the numbers but then, you know, where does that lead us from an internal perspective? I mean, we’re out but we also, once we’re out we need to focus on getting the deals in place and everything in place. And that’s, you know, that’s pretty hard. Without any coordination that’s gonna be a very hard one.

Alright guys, have a great day, live with passion

 

Birmingham Property

Why you should invest in Birmingham property for your retirement

For the retirement lifestyle, you deserve and desire, have a strategy and a location

With low-interest rates, volatile financial markets, and a global economy that appears to be stagnating, many people will rightly be concerned about their retirement years. Just how much money do you need to retire comfortably, and how can you save enough?

Property has proven to be the best long-term investment. It is more stable than share markets, usually benefits when interest rates are low, and is the most responsive asset to supply and demand I know. After all, shelter is a basic human need.

As the population grows, more people need homes. This is why, even when the economy tanks, property prices usually hold up much better than share prices, the value of art collections, gold and silver prices, and so on.

In this article, you’ll learn why property could be the perfect investment asset to build a comfortable retirement.

How much money will you need in retirement?

Most financial advisors agree that you’ll need around two-thirds of your final salary per year before you retire to pay for your spending in retirement. So, if your final salary before you retire is £45,000, you’ll need £30,000 per year to retire.

Calculating what you need to produce this can be done in one of two ways:

  1. The first is to guess how many more years you may live and multiply by £30,000. For example, if you think you’ll live for 30 years, you’ll need £900,000 in your pension pot.
  2. The second is to figure on a 5% withdrawal from your fund each year. If your fund makes 5% every year and you withdraw the return every year, your fund will remain intact and it won’t matter how long you live. In this case, to retire on £30,000, you’ll need to have a fund of £600,000.

So, you need to save enough to create a fund of between £600,000 and £900,000 to retire with an income of £30,000. However, there is one small problem:

Inflation and investment returns in retirement will affect your spending power. If inflation rises, you’ll need to take more out of your fund. If your investment returns don’t keep pace with this, your money won’t last as long as you plan, unless you reduce your standard of living as you get older.

How does property investment help in retirement?

When considering property investment or pensions savings, there is a lot to consider. One of the main ones should be how to sustain your lifestyle throughout your retirement. For this, buy-to-let property can be fantastic. As prices rise, your tenants expect their rents to rise. It’s a natural inflation-proofing. In addition, the property remains yours and could increase in value. In the UK, property prices have doubled every seven to 10 years on average for the last 100 years (though, of course, the past is no guarantee of the future).

Property doesn’t tend to crash by 30%, 40% or 50% like shares do every 10 years or so. That’s because of the constant (and growing) demand for new homes.

So, property is a great investment for retirement purposes – provided you buy the best property you can in the best location. For example, if you buy in an area that is dominated by a single employer, should that employer go bust or move, the demand from tenants for your property is likely to crash.

Why Birmingham is the ideal location for property investment for retirement planning

Birmingham, the UK’s second city, is one of the most attractive locations for long-term property investment in the UK. Here are just a few reasons why:

  • Investors are benefitting from massive regeneration across Birmingham.
  • The local government has a highly ambitious and detailed Big City Plan that looks forward to the next two decades – with years of stunning economic growth mapped out to add more than 50,000 jobs in the city.
  • HS2 is on its way here, and this will reduce travel times to London to less than 50 minutes. This will improve connectivity in an already well-connected city – could Birmingham become a commuter town?
  • It is the host city for the 2022 Commonwealth Games.
  • Birmingham has a thriving and diverse local economy, with new business numbers growing at three times the UK average rate.

Demand for property is high here, and with the population forecast to grow by 12% by 2032, this demand will only increase. It is a young population, too, with more than 40% under the age of 25 – ideal targets for the buy-to-let market.

Over the last three years, property prices in Birmingham have been rising by between 5% and 10% each year, and further growth is forecast. Knight Frank expects the average price to rise by 14% between now and into 2020. Hometrack forecasts price growth of between 20% and 30% in the next four years.

In summary

If you want a comfortable retirement, one in which you have the income to do what you want to do and live the lifestyle you desire, you should consider property investment. And you don’t need to be a property mogul with a portfolio of hundreds of properties to create the income you need.

What you do need is a strategy to develop a portfolio of three properties (yes, you did read that right – three), and to buy those properties in a location that will support and sustain long-term investment.

The location is Birmingham. The strategy is called The 3+1 Plan. To find out more and receive an in-depth appraisal of the best property investment opportunities in Birmingham, get in touch with Gladfish today.

Live with passion

Brett Alegre-Wood

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