General Election: The 2017 Housing Manifesto Of The 3 Major Parties

General Election: The 2017 Housing Manifesto Of The 3 Major Parties

So, the General Election is looming. On 8th June, we face the decision of whether to carry on along the path of ‘strong and stable leadership’ promised by the Tories, or gamble on the prospect of the unknown – a Labour candidate who looks nothing like the party face we’ve been used to over the last two decades. Then there’s the Lib Dems, UKIP, or the Greens: of which there is much less to say.

But for investors in The House Crowd, the principal focus will be the housing policy offered by each of the major political parties. So, just to save you trawling through the party manifestos, we’ve done the dirty work for you. Here’s what you need to know about the 2017 housing manifesto for the Conservatives, Labour, and Lib Dems. Just an FYI – at time of writing, the Greens and UKIP are still yet to publish their manifestos.

Conservative Party 2017 Housing Manifesto 

The ‘Homes For All’ section of the Tory manifesto begins with a comment that states the blinking obvious: ‘We have not built enough homes in this country for generations, and buying or renting a home has become increasingly unaffordable’. So how do they plan to fix it?

The key, they state, is to build enough homes to meet demand. Again, pretty obvious. They identify that the effect of this would be to slow the rise in housing costs, allowing more ‘ordinary, working families’ to buy a home and also to bring down the cost of renting. Crucially, for investors, this will ensure that more private capital is invested in more productive investment, thus hastening economic growth in a secure way for the future.

The Tory manifesto pledges the delivery of one million homes by the end of 2020, with half a million more by 2022. They promise to deliver on the reforms from their Housing White Paper, freeing up more land for new builds in the ‘right places’, encouraging modern methods of construction, and by giving councils the power to intervene where developers do not act on their planning permissions. The Tories will also diversify who builds homes in the UK.

The plan also includes the building of better homes, supporting ‘high-quality, high-density’ mansion blocks, mews houses and terraced streets. And all this whilst retaining the strong protections that currently exist over designated Green Belt, National Parks, and Areas of Outstanding National Beauty. Thus, the government must build 160,000 houses on its own land, and rebalancing housing growth across the country – not limiting it to the south-east.

Housing for older people is also a priority, so the Tories plan to help housing associations increase their specialist housing stock.

The manifesto identifies councils as being to blame for the failure to build sustainable, integrated communities, fingering them as the ‘worst offenders’ and accusing them of building ‘for political gain rather than for social purpose’. The Tories plan to enter into new Council Housing Deal with ambitious, pro-development local authorities to assist them with building more social housing. ‘We will work with them,’ they say. ‘To improve their capability and capacity to develop more good homes, as well as providing them with significant low-cost capital funding’. As a result, they plan to build new, fixed-term social houses, which will ‘be sold privately after ten to fifteen years with an automatic Right to Buy for tenants’, the proceeds of which will be recycled into further homes. Compulsory Purchase Orders will be reformed, reducing cost and difficulty for councils to use, making it easier to determine sites’ true market value.

Finally, the Conservative 2017 housing manifesto pledges to work with private and public sector house builders to capture the increase in land value created when they build to reinvest in local infrastructure, essential services and further housing, making it more certain that public sector landowners benefit from the increase in land value expected from urban regeneration and development.

Labour Party 2017 Housing Manifesto

Labour have titled the 2017 Housing manifesto section of their election manifesto ‘Secure Homes for All’. It also begins by outlining the housing crisis, and pointing the finger at the Tories for failing to fix the housing crisis in the last seven years, stating that ‘Since 2010, housebuilding has fallen to its lowest level since the 1920s… rents have risen faster than incomes, there are almost 200,000 fewer homeowners, and new affordable housebuilding is at a 24-year low’.

Labour’s solution? Investing in building over a million new homes – 100,000 council and housing association homes a year by the end of the next Parliament.

Their plan for a new Department of Housing is ostensibly to ‘ensure housing is about homes for the many, not investment opportunities for the few’. We wonder whether they know about the democratising power of property crowdfunding in this area… and whether they plan to invest in the innovative finance model for real estate at all.

Whilst the Tories accuse local councils of building ‘for political gain rather than for social purpose’, Labour plans to give councils new powers to build homes. They plan to begin the biggest council building program for at least 30 years, ditching the Tories’ ban on long-term council tenancies so that council tenants can have a ‘secure tenancy in a home built to high standards’. The ‘right-to-buy’ policy would be suspended in order to protect affordable housing for local people, unless councils can prove they have a plan to replace homes sold like-for-like.

To avoid urban sprawl, Labour promises to start work on a new generation of ‘New Towns’ to build the homes needed, prioritising building on brownfield sites and – like the Tories – protecting Green Belt land.

The priority, of course, for Labour, is to build new council funds through their National Transformation Fund, which – they say – will ensure a ‘vibrant construction sector with a skilled workforce and rights at work’.

Along with all those council houses, Labour will also build thousands of low-cost homes specifically reserved for first-time buyers, giving local people buying their first home ‘first dibs’ on new homes built in their area. Labour councils across the country, they say, have already been building an average of nearly 1,000 more new homes than Conservative councils.

Just as the Tories do, Labour pledges to ‘not only build more, [but to] build better’. More homes will be insulated, and new modern standards for building ‘zero carbon homes’ will be implemented. Equally, the party plans to consult on new rules on minimum space standards, and introduce new minimum standards to ensure properties are ‘fit for human habitation’ and ‘empowering tenants to take action if their rented homes are substandard’. Like the Tories, Labour also identifies the need for older people’s housing, ‘ensuring that local plans’ address this need. There’s also their predictable promise to ‘reverse the cruel decision’ to abolish housing benefit for 18-21 year olds, a controversial move by the Tories that has had many up in arms.

Controls on rent rises, more secure tenancies, landlord licensing and new consumer rights for renters are all promised. They also promise an inflation cap on rent rises, and to make three-year tenancies the norm. They equally state that they’ll legislate to ban letting agent fees for tenants – which seems a slightly odd statement considering this is already in the pipeline.

Liberal Democrat Party 2017 Housing Manifesto

In the same vein as the two major political parties, the Lib Dems, too, begin their 2017 Housing manifesto section with the (not-so) news that the ‘housing crisis in Britain has become an emergency’. Their figures for increasing the rate of housebuilding are to double the current level to 300,000 new homes a year.

Rather kindly, the Lib Dems have broken their housing pledge down into bullet points, which makes it rather easier to share verbatim:

We will:

  • Directly build homes to fill the gap left by the market, to reach our housebuilding target of 300,000 homes a year, through a government commissioning programme to build homes for sale and rent. We will ensure that half a million affordable, energy-efficient homes are built by the end of the parliament.
  • Create at least 10 new garden cities in England, providing tens of thousands of high-quality, zero-carbon homes, with gardens and shared green space, jobs, schools and public transport.
  • Set up a new government-backed British Housing and Infrastructure Development Bank with a remit including providing long-term capital for major new settlements and helping attract finance for major housebuilding projects.
  • End the Voluntary Right to Buy pilots that sell off housing association homes and the associated high value asset levy.
  • Lift the borrowing cap on local authorities and increase the borrowing capacity of housing associations so that they can build council and social housing.
  • Scrap exemptions on smaller housing development schemes from their obligation to provide affordable homes, and strengthen the hand of local government to prevent large developers reneging on their commitments.
  • Require local plans to take into account at least 15 years of future housing need – focusing on long-term development and community needs.
  • Create a community right of appeal in cases where planning decisions go against the approved local plan.
  • Enable local authorities to: – Levy up to 200% council tax on second homes and ‘buy to leave empty’ investments from overseas. – Enforce housebuilding on unwanted public sector land. – Penalise excessive land-banking when builders with planning permission have failed to build after three years. – End the Right to Buy if they choose.
  • Help people who cannot afford a deposit by introducing a new Rent to Own model where rent payments give tenants an increasing stake in the property, owning it outright after 30 years.
  • Improve renting by banning lettings fees for tenants, capping upfront deposits and increasing minimum standards in rented homes.
  • Help young people into the rental market by establishing a new Help to Rent scheme to provide government-backed tenancy deposit loans for all first-time 62 Support Families and Communities 6 renters under 30.
  • Give British buyers a fair chance by stopping developers advertising homes abroad before they have been advertised in the UK.
  • Give tenants first refusal to buy the home they are renting from a landlord who decides to sell during the tenancy at the market rate according to an independent valuation.
  • Promote longer tenancies of three years or more with an inflation-linked annual rent increase built in, to give tenants security and limit rent hikes.
  • Improve protections against rogue landlords through mandatory licensing and allow access for tenants to the database of rogue landlords and property agents.
  • End the scandal of rough sleeping by increasing support for homelessness prevention and adequately funding age-appropriate emergency accommodation and supported housing, while ensuring that all local authorities have at least one provider of the Housing First model of provision for long-term, entrenched homeless people.

So that’s the top three parties covered. Clearly, there’s plenty to consider; lots of contrasts, but equally lots of crossover between opposing parties. Who’s getting your vote on 8th June? Actually, don’t answer that – no one wants to deal with another war in the Comments section on Facebook… there’s too many of those out there already.

Manchester Property Market Growth at 12 Year High

Manchester Property Market Growth at 12 Year High

Latest figures released by the Hometrack Index show Manchester property market growth to have hit a 12 year high in 2016. This gives the city the second highest rate of price growth in the UK, next to Bristol.

A rise of 8.9% year-on-year for Manchester was reported, with experts predicting that the city will overtake Bristol for pole position by the end of the first quarter of 2017. The figures for Manchester exceed the average year-on-year increase across the UK, which came in at 7.7%.

Strong market fundamentals, particularly a significant supply/demand imbalance in Manchester, keep pressure on prices high. Despite the same supply/demand imbalance in the capital however, London dropped to seventh place for price growth in 2016.

Strong Market Fundamentals Keep Manchester Property Market Growth Thriving

Manchester’s vibrant rental market is also thriving, with demand continuing to grow. This, of course, makes it a dream opportunity for buy-to-let investors. Indeed, the city was recently named the UK’s buy-to-let hotspot by HSBC. This is all despite the massive challenges faced by buy-to-let investors following the government’s attacks on landlords.

The growing popularity of property crowdfunding is helping prospective buy-to-let investors push back against these attacks, providing a welcome haven for those keen to benefit from a steady stream of secured rental income.

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Rental growth here is 13 times that of London, driven by the growing population of young renters, flocking to the city for studying and career opportunities. Manchester boasts 60% more 25-29 year olds than the UK average, placing it within the country’s fastest growing demand for short term lets.

Massive Investment In Manchester Fuelling Property Market Growth

Success is also compounded by the government’s whopping £7 billion investment in Manchester. Determination to develop a world-class infrastructure in the city will attract further billions of worldwide investment over the coming years, which is already evident as overseas investors hone in on the investment opportunities offered here.  

Over 100,000 students across Manchester’s four main higher education institutions give it the highest student population in Europe.

70,000 of these are not in student halls of residences, meaning they are renting privately within the city. This makes it prime territory for PBSA (Purpose Built Student Accommodation) investment.

Across the board, from the UK-leading purchase market, to the thriving private rental and student markets, right through to commercial investments, Manchester is winning. As growth in the city’s property market continues at an unprecedented pace, with huge investment fuelling projected growth for years to come, we remain confident in the continued promise that our city offers investors.

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An Introduction to Investing Through Property Crowdfunding

An Introduction to Investing Through Property Crowdfunding

Traditionally, only those with access to large amounts of capital have been able to invest in the lucrative world of property. Managing a portfolio is normally time-consuming, business, which becomes increasingly more burdensome as the investor’s portfolio becomes larger.

However, in the last few years, a new method of property investment has emerged which has effectively democratised the entire investment process, allowing more people than ever to benefit from the financial gains that property investment can offer.

Property crowdfunding started to take off in 2012, and is now worth billions of dollars a year worldwide. The value of the industry currently doubles every two months, and is set to be worth $250bn by 2020.

The growth of the property crowdfunding industry has been catalysed, in part, by the relaxation of regulations over the last few years. The Government has identified the industry as being hugely beneficial to the economy, and has also begun investing in crowdfunding itself. Institutional investment is also coming into play at an increasing rate, and high net worth investors, attracted by the simplicity of the process, and the returns available, are also investing through property crowdfunding.

But why is investing in property crowdfunding proving so popular?

Offering the chance to build a diverse portfolio without all the legwork involved in traditional property investment models, and with the opportunity for significant gains, it’s no surprise that investing in property crowdfunding has grown exponentially in the last few years.

What’s more, as interest rates on savings continue to crawl along the seabed, and returns from both rental and sales continue to rise, more and more people are waking up to crowdfunding as a simple way to grow their money.

How Does It Work?

Property crowdfunding encompasses both equity investments and debt based investment (also known as peer to peer secured lending).

The concept itself is relatively simple.

Equity investments involve a group of people pooling their cash to buy a property as shareholders through a ‘Special Purpose Vehicle’ (SPV). The SPV is a limited company, set up solely for the purchase of that property. The SPV handles all the work, fees and maintenance of the property, whilst the shareholders receive their proportion of the rental yields, and/or share of capital gains when the property is sold.

People can invest even very small sums in buying shares in the property. On some platforms, this is as low as £50, but the typical minimum is between £500 and £1000. One of the advantages of property crowdfunding is that you can spread your available capital over a number of different properties across the crowdfunding platform, to mitigate risk.

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Getting started is a very quick and easy process. You simply register on your chosen website – it is an FCA requirement that only registered and accredited investors may participate, and, once registered, you simply select the properties you wish to invest in.

Debt based investments again involve pooling resources, in this instance, to make micro loans through the platform to a third party borrower. The loan as a whole is secured against the borrower’s property and the platform appoints an agent to act on behalf of lenders and take any necessary enforcement action. These types of investment are usually short term (up to 12 months, and pay a fixed rate of interest with no capital growth).

Where Did It Start?

The House Crowd is the longest-established property crowdfunding platform. It began trading in 2012 and offers both debt and equity investments. Since then, other companies have followed in their footsteps, such as Property Moose in 2013, and Property Partner and Crowdlords in 2014. The industry continues to expand, with several new platforms emerging each year.

Is It Regulated?

Property crowdfunding firms are all regulated by the Financial Conduct Authority (FCA), which ensures that platforms are managed properly, and that risks are made completely clear to investors. As with any investment, there is risk to capital – but it’s worth comparing this risk against other investment classes, and seeing how property crowdfunding stacks up.

Before investing through property crowdfunding platforms, it is very important to do your research. Every regulated platform should have the FCA authorisation number clearly visible on their website. If you can’t find these details, you should steer clear as they are not operating legally.

Is It The Right Choice For Me?

As with any investment, you need to take into account your personal circumstances to establish whether it is the right one for you.

You can find out more about establishing whether property crowdfunding is the right investment for you here.

Ask yourself what you wish to achieve. Investors with a lot of professional experience and access to bank funding, may find the model less appealing than novices.

If, on the other hand, you don’t have a deposit available, or aren’t able to get a mortgage, then investing through property crowdfunding could be an ideal way for you to access this asset class. And, given the government’s recent attacks on landlords, which has severely undermined the profitability and viability of buy-to-let investing for individual investors, it may well be that crowdfunding remains the only sensible option available for most.

Risk

The same principles that apply to other forms of property investment also apply to crowdfunding. You should be aware that capital growth profits are speculative, and investing in properties that produce a healthy cash flow is the more sensible approach.

One of the major risks associated with cash flow positive properties is that of damage or non-payment of rent. As such, you should always factor this in as an eventuality that may affect your yields. As mentioned above, however, if you have a well-diversified portfolio, with your capital spread over several properties, any losses due to one bad tenant will be more bearable than if you had all your eggs in one basket.

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At the end of the day, it all comes down to your risk tolerance. You do lose a large amount of leverage by investing through property crowdfunding, and you will only benefit proportionately from the property’s capital growth but, at the same time, having no borrowing means significantly less risk as there are no mortgage payments and no danger of the property being repossessed (as shareholders own it outright).

If making crowdfunded debt-based investment, (aka peer to peer lending) you need to know what would happen if the borrower defaults and does not repay the loan. You should ask questions about how your investment would be protected, what happens in the event of a default – how easy is it to take control of the secured property? – and how much equity is available to enable you to recover your money should the worst happen. Unless there is sufficient equity in the property, you could risk losing some or all of your money.

If you opt for debt-based investments, your investment will be secured by a legal charge. A critical matter to consider is at what LTV the loan is made. If, for example, a loan is made at ‘75% LTV’, it means that you will be at risk of losing some of your capital if the borrower defaults, the property has to be seized, and is sold for less than 75% of its current valuation.

Debt investments are generally considered to be lower risk than equity investments, as lenders are always paid out before shareholders, however, you do not get the potential upside of capital growth.

What About If I Want Out of My Investment?

If you need a liquid asset, then property is not the best choice.

Investing through property crowdfunding facilitates liquidity to some degree as it may be easier to sell shares in a property than the whole property. However, there is never any guarantee that you will be able to find a buyer, and, if you cannot do so, you will have to wait until the property is sold.

Some platforms will help you to find a buyer after the expiry of a minimum term, but you should check the small print before you invest. If you’re looking for a short term investment, P2P secured lending may be the better option.

To Conclude

We hope that this has offered you some valuable insight into getting started investing through property crowdfunding. Of course, you should know everything about the ins and outs of any investment before you part with your money, and we are fully committed to helping you know all you need to.

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If you have any questions, you can always get in touch with us and we will be very happy to fill you in.

Newton Heath and Marple Development Updates

Newton Heath and Marple Development Updates

Newton Heath Manchester
It has been a few weeks since our last update for the new build development of townhouses in Newton Heath Manchester.
In fact in the last blog it really did look like a building site.
A few months later and the interior designers have worked their magic and the contemporary living spaces are starting to look like homes.

10-10-newton-lounge

 

As you can see from the photographs, the light open kitchen dining areas should prove very popular for those modern families who enjoying entertaining.

10-10-newton-kitchen

The spacious lounge area and bedrooms certainly make these properties stand out from other townhouses in the area.
The bedrooms have been decorated and dressed in soft neutrals to ensure the light airy feel continues throughout.

10-10-newton-bedroom

The team have worked hard to ensure that the finish and specification in the bathrooms have certainly kept our promise of contemporary high specification housing.

10-10-newton-bathroom

Station Road Marple.

Just a few miles away in the leafy village of Marple our project at Station Road is now looking absolutely stunning.

10-10-marple-front
This extensive renovation has ensured that we have kept the character of the property along with the stylish contemporary extension to the rear (photographs to follow of the internal living space).
The property looks incredible and the external landscaping to the rear certainly looks a bit different in these two before and after snaps!

10-10-marple-rear

The photograph above shows the new decked area and extensive living room extension. The removal of the tarmac driveway and old fencing has enabled us to extend the lawn and garden.

marple-garden-1

‘Before’ photograph of the garden requiring a bit of TLC and some turf.

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Bank Chambers, Stockport, Sales Update

Bank Chambers Stockport.

We have just sold another apartment off-plan (the third of nine) at our Bank Chambers, Stockport development. Work starts on the conversion next week (3rd October 2016) so please keep an eye on these blog pages and our social media for project updates.

The CGI images below show the kitchen, living space and contemporary bathrooms.

thc002-_bank_chambers_kitchen_lo-res       thc002_bankchambersint_bathroom_hr    thc002_bankchambersint_apt7_hr

 

Stockport Market has become the latest place to be with its historic market hall and popular teenage market and is also becoming a foodie hotspot with new eateries popping up along the cobbled streets.

We are looking for a good quality restaurant operator to take the ground floor. It’s in a great location directly opposite the market hall, so if you know of a restaurant owner looking to expand ask them to get in contact.

 

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July Update-a Month in Numbers

 

As many of you know we started offering peer to peer secured loans in 2015 in addition to our equity investments.

Here’s a few stats to show how we are doing (correct as of 31st July 2016)

 

  • Total sum loaned                             £8,339,734
  • No. of loans made                           22
  • No of loan repaid                             5
  • Returns Paid to date                       £ 95,028
  • Av. loan period                                  10 months
  • Av. loan size                                       £379,079
  • Default rate                                        0%
  • Av. Loan To Value                            68%
  • Av. interest rate                               8.95%

To learn more about our secured peer to peer loans download our free guide here

You can always read more about our new peer to peer loans, equity investments and Property Crowdfunding by simply registering on our website

 

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April Update-a Month in Numbers

 

Last month we paid out a whopping £114,632 in returns to 492 investors.

We also raised an additional £1,660,000 over 3 projects and 133 more people are now earning a very healthy 9% a year on their investment.

If you have money festering in a bank account, perhaps it’s time to get your slice of the pie and put it to work with one of our fixed rate short term secured loans.

Alternatively, if you prefer a longer term deal that produces both income and capital growth you may want to look at one of our fully tenanted properties which have blue chip clients and should produce up to 9.5% in rental yield. The last one of these, HCP165 filled up in just one afternoon and the latest, HCP166, was 50% funded before we even launched it.

We are hoping for another record breaking (and sunny) month in May with more assured rental deals and have the exciting new development project at the landmark Bank Chamber (below) in Stockport launching this week.

HCDC005 ext

 

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Development updates

Regent Street Town Houses Newton Heath and Station Road Marple,Development Updates.

Both of our development projects are racing on and both have had the tilers in.

Granted they are at different build stages with the Regent Street Town Houses having the roof tiled and Station Road Marple nearing completion of the bathrooms but I am sure that you will agree from both sets of photographs they are certainly flying up compared to our last update.

The project at Regent Street will soon have the roof finished and judging by the speed the contractors are working it won’t be long before these super modern homes will have families moving in.

The photographs of the Station Road Marple project show that the rear extension is starting to really take shape with Velux windows ready to be fitted in what will be a huge open plan family space.
The bathroom tiling is looking great and as mentioned in the last blog the new attic suite certainly does make the most of the once hidden archway and lovely large space to get away from it all.

We are certainly looking forward to seeing photographs of the new development in Alderley Edge which is just starting-watch this space!

 

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Marple Photographs (bathroom, attic suite, family room and feature arch)

marple pics 13.5.16

Newton Heath Photographs 

newton pics 13.5.16

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Why We Believe Investing For Income Is The Best Choice

Why We Believe Investing For Income Is The Best Choice

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With UK interest rates stuck at historic lows and showing no signs of increasing any time soon, many investors have come to realise that there’s little difference between a savings account and leaving their money underneath the mattress.

Leaving money in the bank might be the safest option, but it is also one which will see the value of those savings gradually whittled away.

Income investing is becoming increasingly popular – here are seven reasons why we believe it is the best way to secure your financial future.

1. A little risk goes a long way

To enjoy any sort of income from investing it is necessary to accept some risk, however the key is to find that sweet spot where the risk is acceptable given the potential and predicted returns.

Income investing can allow that balance to be found. Whether it is in property or established companies with a history of solid dividends, money can be put into areas which show historic stability.

Areas, sectors and businesses which survive recessions, fashion and the volatility of other markets.

2. There are safe options – major companies with a track record

Income investing does not have to be in risky start-ups or areas tipped for massive growth but with high risk.

In fact, while such options might work out in the short term, in the longer run the established areas tend to be the ones which not only offer stability, but also provide the better returns. You can have your cake and eat it (speaking of which, huge bakers aren’t a bad investment – people always want cake…)

Larger established companies have exited periods of rapid growth and expansion, so rather than reinvesting any capital tend to offer attractive dividends.

3. Potentially have two means of making money, yields and capital growth

When income investing it’s possible for two ways to enjoy a return.

Take property for example – admittedly our area of expertise. Invest in a rental property and there are the yields from rent, but also potential capital growth too.

Two ways to enjoy a healthy return – that beats savings and its big fat zero ways to make a decent return.

4. Helping to grow the economy 

This might not be your key concern, but income investment does help perform an important job. It helps keep the economy moving, it provides funds where they are needed, importantly to well-run businesses.

If investing in the UK, it helps keep our economy healthy and competitive, if investing in property it helps improve the housing stock and provide affordable housing.

Invest wisely and you can go to sleep with a healthy self-satisfied glow to accompany that healthy bank balance.

5. You can have range of different investments, some low risk, others with the potential to offer great returns

When investing, it is paramount to build a portfolio to help spread risk and with it maximise returns.

You can invest for income and do this by investing in a range of businesses, in a range of property or even a mix of the two.

Some industries offer healthy dividends no matter the economic circumstances of the day – pharmaceuticals for example and others providing products and services which are always in demand. Others such as car manufacturers and those producing luxury products are more likely to be affected by the prevailing economic mood.

Property, being in obvious demand, is firmly in the safer camp. That said, a little risk as part of a portfolio can go a long way – would Apple or Microsoft have seemed safe investments a few decades ago?

6. Healthy growth of dividends

The days of living three score year and 10 are long past – with a fair wind there’s a fair chance any of us could now live to our late 80s and beyond.

Great news on one hand, but it does mean those investments made in advance need to keep paying out for longer than you might imagine – especially as who knows what pensions will look like by then…

The percentage  increase in dividend pay-outs could be absolutely crucial – a difference of a few percent could more than double the annual dividend a few years later.

To reiterate a point made higher up, income investment in solid options enables you to tap into dividends which pay out, and pay out, and keep paying out – hopefully for many, many years to come.

7. Bricks and mortar

We’ve hinted at it above, but property can be an ideal investment for those seeking an income.

Traditionally, buy to let investing has been appealing but only available to those with sizeable savings pots – especially given the need to invest in multiple properties to spread risk.

However, the emergence of crowdfunded property investment means that smaller sums can go a long way – for example a £20,000 savings pot could be used for 10 stakes of £2,000 each in different properties.

With crowdfunded property investment also a passive investment, there is none of the red tape of going it alone as a landlord, or the worry around ever changing legislation on Stamp Duty and mortgage relief…or the coming difficulties of getting a buy-to-let mortgage.

With property investing, there is always a tangible asset behind the investment.

As you might have guessed, the House Crowd is a property crowdfunding investment platform.

If you do want any more information on property crowdfunding, please have a look round the site and register for more information.

And however you choose to invest, we wish you the best of luck.

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5 Reasons Why Manchester Is The Top Place To Invest In Property

mcr salfordIt was great to read this week on the BBC website that the Chinese are investing heavily in the Manchester property market – many of them now preferring it to London. It is bound to help boost the economy and inevitably push house prices higher – which may be good or bad depending on your viewpoint. You can read the article here: http://www.bbc.co.uk/news/business-36086012

I also read this week the Jones Lang La Salle’s report on The Northern Renaissance and their belief that Manchester is the best place in the UK to invest in property as it provides both healthy yields and excellent prospects for capital growth.

You can access the full report below, but here are just a few key points from their research:

  • Manchester sits at the heart of the Northern Powerhouse, a brand that is gathering real momentum.
  • The residential market is the strongest outside of London and has more growth opportunities over the coming years than any other city in the UK.
  • The ongoing infrastructure investment via the Metrolink extension, the airport and HS2 give the city added momentum going forward.
  • 2016-2020: predicted house price growth of 24.6%
  • 2016-2020: predicted rise in rental income of 22.8%

What this could mean for an investor who currently generates a gross yield of 9% on a property worth £100,000, is that over the next 5 years his/ her rental income will increase from £9000 a year to £11,052 per year and his/ her property will increase in value to £124,600. That makes a forecast gross annualised return of 15.9% (before deduction of the usual costs).

 

Access the full report here

 
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