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London’s Calling Investors With BMV Property

February 7, 2009Article by Ray Withers

London 7 February 2009 – The time is ripe to put money in to London investment real estate as the clock is winding back property prices to levels not seen for many years. The market is for buyers as many developers are cutting prices to shift property locking them in to bank debts at costs often far below market value. Although capital growth is stagnating, for landlords snatching good London BMV property, then profits are waiting from net yields. As with all property investments, investors have to line up location, property condition and price to make a deal – and the new to the market The Shrubberies Mews Townhouses, Streatham, London, is a development of two-bed roomed townhouses offered by Property Frontiers that fits this profile with:

  • Exclusive off market opportunity
  • 20% below current market valuation
  • Selling price well below estimated cost of construction/land purchase
  • The developer in financial difficulties due to the current UK economic climate
  • The properties are 20 minutes from the City and only a short walk from a station and with easy access to all amenities situated on Streatham High Road.
  • The development is eight mews houses within their own gated community, with manicured gardens and off street parking.
  • Each house has open plan living space and cloakroom downstairs, with double bedrooms and a bathroom upstairs.
  • The cost of each house is £300,000 – a huge £75,000 below-market-value price backed by independent professionals Ludlow Thompson.
  • For a cash investment of £87,000 to cover a 25% deposit and purchase costs, investors can reap the rewards from The Shrubberies Mews Townhouses, with a 75% loan-to-value mortgage.

There are two main options for letting the property:
1. Instructing a local agent to seek tenants and manage the property.
2. Letting the properties via the local council. Property Frontiers are discussing this option with the local authority, signing five year fully repairing lease. This strategy enables you to completely let go of the property for a five years and have the house returned to you, having had any required repairs completed, in the original state.

Either way, the survey predicts gross yields of 6% at £18,000 per year.

“I was born and bred in South West London a stone’s throw away from this project and I have to say I do not think I have ever been so excited about the launch of a scheme,” said Property Frontier’s sourcing manager James Black. “In my opinion this is the best part of London for young couples and families who are looking for an affordable home with fantastic transport links, Streatham Common and Tooting Bec Common are both within walking distance, there are a huge selection of local amenities and a great selection of schools. “It is impossible to begin to describe London in the way that we would traditionally describe investments in emerging markets but that is what makes this so exciting. As nerve racking as this time feels it also feels to me, to be the first time for genuine value Investment in my own country in the last 15 years.”

For more information contact Property Frontiers on +44 (0) 1865 202700.

Author

Ray Withers

Ray has over 17 years’ experience in the international property market and bought his own first international property investment back in 2002. Aside from running Property Frontiers, Ray has been involved in residential, hotel, student and commercial property investment and development in both the UK and overseas and co-wrote "Where to Buy Property Abroad - An Investor's Guide". As Founder and Trustee of the Frontiers Foundation, Ray is directly involved with many of its projects to ensure they have a direct and tangible impact in individual communities across the globe. He is passionate about property, travelling, scouting out new opportunities and finding time to spend with his young family.
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