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Times Running Out For Overseas Investors In The UK

March 30, 2009Article by Ray Withers

UK below market value property is doubly attractive to European investors looking to put together a cheap, cost-effective portfolio. Distressed property in the UK is a particularly popular purchase as the buyer profits from an immediate capital growth due to the discounted property price. Add to this the low interest rates available in the UK, and property investors who can pick up finance or have disposable cash are making a fortune while the market hits rock bottom.

With the Council of Mortgage Lenders revealing about 45,000 homes were repossessed last year – and forecasting that will rise to about 70,000 for 2009, there are plenty of below-market-value bargains on the market for discerning buyers. The lack of buyers means property investors can cherry-pick the very best properties.

This may be a time-limited offer in the UK for European buyers, because the slipping Pound’s low value against the Euro is expected to flip the other way later in the year, meaning UK investors will once again rule the roost in Europe For instance, Property frontiers, a well-established consultancy in Oxford, has two UK distressed property , deals

Merchants Court, Wavertree, Liverpool

This is an exclusive below-market-value deal with 30 two bedroom apartments at up to 25% discounts. The apartments are new and fitted out ready to rent and prices start at just under £90,000. Last year, identical property was selling for £135,000. Wavertree is a popular Liverpool suburb. Merchants Court is a short stroll from the high street, station and top class sports facilities. The city centre is 10 minutes away by train.

Gross yields here are expected to lie between 7% and 10%.

The Shrubberies Mews Townhouses, Southwark, London

This is another exclusive development of a small, gated community of just eight townhouses. The developer is offering a massive £75,000 on the certified valuation – bringing the asking price down to just £300,000. The houses are open plan on the ground floor and have two double bedrooms and a family bathroom upstairs. Again, they are a short walk from local shops and stations. The City and West End is within easy reach by train Gross yields of 6% at £18,000 per year are expected from the development.

Both these developers are selling at more or less the price of the land plus build costs to clear the properties from their books. Independent valuers have certified the property prices.

Property Frontiers has exclusive relationships with reputable developers and has secured a number of investment properties at below market value prices. The company covers major UK cities like, London, Manchester, Birmingham, Liverpool, Leeds, Edinburgh, Cardiff and Glasgow. A personalised property sourcing service is available.

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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