Thirlmere Deacon Property Investment Magazine Issue 3 October 2020

Issue number 3, Q3 2020

content Q3 Review Q4 Preview

4

Market Movement Over Q3

12

Diversifying your portfolio 104

Hong Kong vs UK

42 Property Feature

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54

Construction Updates

68

Developments on Offer Q4

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110

Investing through a recession

Meet Nichola Harrison

116 3

4

5

Letter from the CEO

W

ow, ok Q3 review time. I

....

write this as I am flying

over a city called Kirkuk, a couple of hundred km north of Baghdad, Iraq on the way home from Dubai.

At first glance, and from this high up the area looks arid and empty.

At a closer glance, you’ll see the makings of quite a prominent city. And then closer still, smaller towns and villages surrounding it. This must feed the big city with trade, employees, crops and livestock. Interesting comparison afoot.

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This summertime quarter has been as

is a vast under-supply of quality

busy as we had predicted and culminated

rental property across the UK, and

in the Thirlmere Deacon London Team

there are still certain areas where

visiting the Dubai team and getting a

you get the right mix of socio-

taste of working from Business Bay. I

economic growth and available

can’t sit here and pretend that I knew

land to build on that allows

what was going to happen this quarter

an investor to secure a great,

other than that it would be busy. For

well priced asset and enjoy a

example, I had expected the majority

handsome, minimum hassle yield.

of our business, interest and sales this quarter to come from the big cities,

Whilst delving down this “due

such as Manchester and Birmingham, as

diligence rabbit hole” over the

deals started to reappear in the market.

last year or so, I have come across

However, what we saw, was in fact a

many interesting success stories

vindication of our earlier efforts and

for “Satellite Cities and Tertiary

belief in sourcing options in smaller

Towns”. The one I have regaled

towns and cities that offer the right mix

the most recently is that of a very

of price point and rental demand for our

prominent football pundit (no

investors. Allowing them to secure lower

names mentioned – I’m trying to

ticket assets with higher returns.

get him to agree to an interview) who himself had a decent on-

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Among other wins, selling out our

pitch career back in the 80’s &

Wolverhampton and Redditch projects

90’s but nothing like the vast

this quarter (242 apartments between

sums top football players make

them) was a big milestone for us as

these days. This shrewd young

a company as well as our developer

visionary, however, decided during

partners as it proves that hundreds

his playing days to buy something

of individual investors (along with

in the region of 35 properties in

their independent network of wives,

Swindon – 30 years ago!! With

husbands, accountants, IFAs, agents,

the average property price today

social distanced mates at the pub etc)

in Swindon at £242,153, that’s a

have all done their own due diligence

passive portfolio that would be

and research and have come to the

worth in the region of £8.5million

same conclusion that we have - there

today. Not to mention the 30 9

Here’s to Q4!

As the last quarter has proven,

Sir John Templeton proved it

it’s particularly difficult in these

best when attributing much

times to predict what the next

of his investment success to

3 months has in store. All I can

“maintaining an elevated mood,

assure you of is that we will

avoiding anxiety and staying

continue to offer innovative and

disciplined!”

creative buy to let products that

So let’s all take a leaf out of Sir

will help those that want to sure

John’s book, stay positive and

up and secure their financial

focus on growth and prosperity.

freedom.

Stay safe guys and keep thinking Uncertainty always breeds

critically.

years of rent this quixotic goal-setter (and

opportunity. During this last

goal scorer) will have achieved over the

couple of years, we’ve been

Best regards,

life of his portfolio.

perfecting our groundbreaking 10

Stuart Williams

year residential rental assurance

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In short, buying low and selling high has

packages, and in these uncertain

CEO and Founder,

been the generic investment mantra, but I

times, they are proving extremely

Thirlmere Deacon LLP

suggest buying low and never selling at all

popular. Q4 will see the launch of

+44 203 950 7891

if you are looking at securing a long term

2 new sites on that now tried and

stuart@thirlmeredeacon.com

future of financial freedom.

tested model.

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Market Movement Over Q3 12

13

....

JUNE As the UK property market got back into full swing after reopening officially on 13th May, investors were seen to be preparing to take advantage of the opportunities found in an uncertain market.

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Property investors ‘building war chests’ to expand portfolios

Newbuild market bouncing back quicker than second-hand market

T

B

he nation’s property investors are increasingly looking to

grow their cash reserves and

uyer demand for new-build property has bounced back in

the six weeks since the

expand their portfolios; with a

resumption of the housing market

new report saying 30% of

according to research from

investors are taking out a

Zoopla. The portal says this

remortgage with the aim of

recovery is a continuation of the

building a ‘war chest’ to purchase

upsurge in demand recorded at

further properties.

the start of 2020 – following the December General Election – when the property market recorded its strongest start to a new year since 2016.

Source: propertyinvestortoday

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Source: estateagenttoday

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....

JULY The chancellor announced a stamp duty holiday on the 8th July and activity in the UK property rocketed. Investors also recognised that areas outside London offered more better potential for capial growth and stronger rental increases.

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Stamp duty holiday: How will it work?

T

he chancellor has announced a temporary holiday on stamp duty

on the first ÂŁ500,000 of all property sales in England and Northern Ireland.

The tax threshold has been temporarily raised until next March to boost the property market and help buyers struggling because of the coronavirus crisis. The changes have come in with immediate effect.

Source: bbc

London rents dip but other areas flourish

t

he typical London rent has dipped by 1.7% to ÂŁ1,583 per month.

Other areas have fared better, as the North West saw rents increase by 6.6% between June 2019 and 2020.

Source: propertywire

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It’s gone bonkers’: buy-to-let inquiries boom as landlords swoop on stamp duty break

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uy-to-let landlords have swooped into the property

market to take advantage of the stamp duty tax giveaway. In a temporary move intended to stimulate the property market in the wake of coronavirus, Chancellor Rishi Sunak last week announced that buyers in England and Northern Ireland would pay no stamp duty on the first ÂŁ500,000 of their purchases until March 31. Landlords and others purchasing a second home still pay 3pc of the entire value of the property in additional tax, but the tax break means that their bills could fall by as much as half.

Source: telegraph 22

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O

ne week after the Chancellor announced a stamp duty

holiday on the purchase of property in England, Skipton International has reported a sharp increase in its buy-to-let mortgage enquiries.

Expat buyto-let enquiries surge following stamp duty changes

Source: financialreporter

Buy-tolet landlords abandoning London for better returns in the North

L

ondon-based buy-to-let landlords are increasingly heading to the

North West in search of better returns, research from Hamptons International has found. A third (34%) of Londonbased investors buying new property in the past year bought in the Midlands and North, up from just 14% in 2015 and 4% in 2010.

Source: propertywire

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....

AUGUST Through August the market remained buoyant, investors and overseas buyers notably active - particuarly buyers from Hong Kong following the announcement of the Hong Kong BN(O) Visa towards the end of July.

Overseas investors, aware of the tax changes coming in at the end of March 2021, were reported to be buying in order to avoid the increased charges on property purchases.

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D

emand for property in northern England from

Hong Kong buyers is surging as the Chinese squeeze on the city intensifies. People from Hong Kong have long bought property in Britain as investors, concentrated in London. Now, agents report that many are buying for their families in northern England, in a quest for value for money.

Source: telegraph 28

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T

he middle of a major economic crisis should be the

worst time to buy property – yet demand is booming.

Source: telegraph 30

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Top universities for buyto-let revealed

W

ith the academic year set to get underway,

thousands of students are busily moving into flats and rented homes in towns and cities around the UK, which is good news for landlords, many of which were concerned about the potential impact of the coronavirus pandemic.

Landlords can earn attractive returns when buying property near a university, but only if they are shrewd about where they purchase.

Source: landlordtoday

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....

SEP TEM BER Reports through September pointed to continued high levels of activity and with several months worth of data now accumulated post-lockdown prices were recorded to be on the rise, though at a relatively steady rate, increasing by a few percent.

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Rightmove says demand is rocketing in every region of the UK

D

ata from Rightmove shows that demand is up 61 per

cent compared to the same period last year – and the portal attributes much of this to the stamp duty holiday. The top performing regions are the South East and East of England, each up by more than 70 per cent, but across all regions the percentage growth in demand is outstripping the growth in new supply.

Source: estateagenttoday

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House prices at all-time high, says Nationwide

H

ouse prices continued their post-lockdown

recovery in August, notching up their highest monthly rise in more than 16 years, says the Nationwide. Prices rose by 2% last month.

Source: bbc 38

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Feature Report 40

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The

world economy has been affected

by the pandemic and as we begin to realise the economic ramifications of coronavirus and investors across the globe are seeking assets which have historically proven resilient in the face of sudden downturns.

....

UK property has demonstrated its ability to recover quickly and deliver stable returns time and time again making it particularly appealing.

Not only has Hong Kong suffered from the pandemic, but the political shift and new laws have also had an impact on the economy and property prices have been negatively affected with a reported drop of 30% in some cases.

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Hong Kong Property Property prices dropping can

Average property prices in Hong

often be a trigger for investors

Kong are also incredibly high at

who hope to buy at the bottom of

around $1.2 million, almost twice

the market. For this to work there

that of London which is reported

needs to be a strong indication of

to be around $650,000. Gross

economic recovery in the not too

rental yields when comparing

distant future.

London to Hong Kong are also in the UK’s favour with average

Mainland Chinese buyers have

yields almost double in the UK

been reportedly scouring the

capital, outside of London yields

Hong Kong commercial property

can quadruple those available in

market for bargains. These

Hong Kong.

mainland buyers have reportedly accounted for 98% of all inbound

The news has widely reported

investments in 2020.

that Hong Kong buyers have been purchasing property in the

There are many reasons for

UK, some with the intention of

hesitancy by those considering

living others as an investment.

Hong Kong property as an

A surge in activity followed the

investment asset; there are

UK government’s announcement

real concerns that the local

that they would offer citizenship

property market bubble might

options to about 3 million people

burst and that the policies being

which is roughly 40% of Hong

put in place are being deemed

Kong’s population.

potentially inflammatory.

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UK Property Despite Covid-19 since

prices will see an increase of 2%

the UK property market

in 2020, before dropping back

officially reopened on 13th

to 1% growth over 2021, 3% in

May 2020 activity has soared

2022, 4% in 2023 and 3% in 2024.

and property price growth is

Cumulatively that is equivalent to

gaining momentum. Whilst

a 14% rise from the start of 2020

transaction levels will be less

to the end of 2024.

than in previous years due to the market being effectively

With this being based on average

closed for several months

growth across the entirety of the

earlier in the year the outlook

UK you can guarantee that certain

is positive.

locations will offer far greater potential for price growth over

The consensus amongst

the same period.

experts remains to be that any disruption to the property market will be short-lived and that we will see rapid recovery. Global real estate agent Knight Frank recently released updated forecasts for the coming years; across the UK they predict that

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HK or UK? Whilst an element of risk is welcome to investors as it often means the climate is right to secure a property at a discount and see a greater return on investment over time there has to be a steady balance of risk and stability.

Hong Kong is undergoing fundamental changes that could see a shift in its popularity as a business haven which could have a long term negative impact on the property market.

Whilst the huge influx of Chinese investment in 2020 does bode well Hong Kong remains to be in unchartered waters politically and has a long road to economic recovery ahead due to the global pandemic and

and a majority government in place, the UK economy began to show exciting promise, even with the threat of a no-deal Brexit.

Many feel that the UK is, across many sectors including property, picking up where it left off before lockdown.

The UK and in particular the UK property market is known to be a safe haven, historically proving to be resilient and so it continues to be a target for investors from all over the world. The key to investment success in 2020 and beyond is where and what you buy.

political unrest that began in 2019; the risk is deemed too great by many investors.

Though the UK economy has also been affected by the global pandemic the underlying resilience and policies being put in place are supporting recovery. At the beginning of 2020, in the wake of a strong win by the conservative party in December 2019 50

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Where to invest in UK property in 2020 Since lockdown in the UK,

There has also been

impressive

there has been an increasing

an increasing trend for

returns the

trend for relocation to

companies to move their

UK is an

tertiary locations. Areas

places of work and operations

incredibly

close enough to a main city

to smaller cities and towns

interesting

or business hub yet slightly

due to affordability. The

place for

removed from the bustle and

areas that have proved most

investors to

importantly more affordable

successful for this are those

consider in

as places to live are seeing a

which are exceptionally well

2020.

huge boost in popularity.

connected by road, rail, sea and air. Liverpool boasts

In a trend that looks very

an array of idyllic transport

much set to stay, many are

connections which is a key

reassessing their homes and

reason for its continued

looking for options that still

economic growth.

offer an easy commute. For Birmingham areas such as

With so many exciting

Wolverhampton and Redditch

locations to consider that

and for Manchester nearby

offer real potential for capital

city Preston.

growth which generating

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Property Feature 54

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Preston A

round 30 miles north of Manchester and a similar distance from

Liverpool, located on the north bank of the River Ribble, is the city of Preston, Lancashire’s administrative centre which has a population of around 130,000.

Well-connected and with exciting regeneration underway and in the pipeline, Preston is a city that investors should be actively taking an interest in.

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in sizeable sums of public and

national average. Real Estate

private investment into the city.

Agent Savills most recently set

Large scale urban improvement

out forecasts which predicted a

projects are underway, business

cumulative 24.1% price growth for

is thriving and employment rates

property in the North West region

have soared.

over the next 5 years. Whilst they highlighted the prices might drop

Investor interest is on the rise as

in 2020 the region is set to see

the savvy purchasers acknowledge

8.5% price growth in 2021 with

the potential for capital growth

9.0% price growth predicted for

and supported by a growing

2022, 7.0% in 2023 and 6.0% in

economy the increasing rental

2024.

demand and strong yields.

Property prices

Why Preston?

The North West of England has long been recognised as an area that is ideal for investment, property prices have steadily risen with the forecasts for future growth positive yet measured.

Yields are strong and in most

Determined not to become an

jobs – Preston has seen its

industrial casualty, through a

parts over double what can be

economy take off in recent years.

combination of local government

achieved in many locations in the

This turnaround was cemented in

policy, a focus on ‘buying local’

South East region.

2018 when a study by accountancy

and notably in September 2013, a

firm PriceWaterhouseCoopers

City Deal was signed that put in

According to Zoopla, property

(PWC) listed Preston as the most

motion £434million of investment

prices have risen by 11.31% in

improved city in the UK. The

to expand transport infrastructure

the last 10 years and the average

positive economic outlook and

and create around 20,000 new

property value is almost half the

general optimism have resulted

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Rental yields Property located in central Preston has seen exponential increases in demand and as a result, impressive yields can now be achieved. In the central postcode areas, yields as high as 8.5% are being achieved.

Across all Preston postcodes rental yields have grown by at least 5% in the past 5 years and the average yield for PR1, the city centre, is around 7%.

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Local economy There are several major employers in the area, perhaps the largest, BAE Systems is the UK’s principal military aircraft design, development and manufacturer has several bases in the vicinity.

There are several manufacturers in and around Preston including Warburton’s and Fox’s biscuits and numerous public sector employers.

Due to its position near to so many motorways Preston is also home to several freight and haulage companies. Of all of Lancashire’s 14 districts, Preston has the most business enterprises with over 5,000 individual registered businesses.

The University of Central Lancashire (UCLan) is one of Preston’s major employers, employing around 4,300 staff and has a student body of around 33,000 – it is a major contributor to rental demand in and around the city.

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Preston Central Apartments Preston Central Apartments

The city centre’s amenities are

is a prestigious residential

within walking distance, major

development situated on the

employers such as the Preston

picturesque Winckley Square

City Council and the University

in the very heart of Preston.

of Central Lancashire are less

Planning permission was granted

than 1km/0.6miles away. The

in May 2020 to convert an office

apartments are just 400m, a short

into a luxury apartment building,

walk, away from Preston Railway

works are underway at the 70 unit

Station.

development and are expected to be completed in Q1 2022.

These highly energy-efficient, modern and secure apartments

The beautiful apartments will

are to be finished with quality

enjoy views over a leafy Georgian

fittings and stylish design. The

square which has recently been

developer has an exemplary track

the subject of a major restoration

record delivering projects on time

project. The scheme has returned

and to the highest standards -

the gardens to their former

apartments will come with a 10-

glory including improvements to

year warranty for works.

footpaths, planting, lighting and seating.

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Where to invest in 2020

With the stamp duty holiday in

regeneration, a growing economy,

place until March 2021, many

exciting predictions for capital

investors are seeking to take

growth and existing strong

advantage of purchasing or

rental demand – the potential

restructuring during this period.

for investment is huge. If you’re

Preston should absolutely be on

focusing your attention on the

investor radars when considering

North West region you should

where to invest in 2020.

be considering Preston. Preston Central Apartments in particular

Preston is a city which

present a compelling opportunity

offers inexpensive properties

for investors.

in locations undergoing 66

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Construction Updates 68

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Natex Student Residences

Block A

Block B

Decking has been complete to

Lots 1 – 9 of the

block A up to level 12.

steel frame have

The concrete floors have been

been erected and

completed to level 12 and the

decking loaded out.

back propping is being installed to

The decking

allow the steel frame to continue

continues to be

up to level 15.

delivered and

The under slab drainage is now

loaded out to suit

complete.

the steelworks, we

The ground floor slab is planned

currently have a good

to be poured next week.

stock on site ahead

Mast climbers and hoists are

of the steelwork

being erected.

installation.

The SFS has commenced on site

J-Safe edge

with head and base track installed

protection is being

up to level 5.

progressively

The site continues to work under

installed as the frame

social distancing measures which

progresses.

are working well 70

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Regent Plaza

On Site Status Evadx are progressing well and are on a programme to complete the first phase of the steelwork frame within 8 weeks of the start on site.

The first phase comprises the erection of the beams and columns, together with the installation of the temporary edge protection, from grid

Work Completed

line 20, nearest to Oldfield

Helix Civils have now left the

grid line 9.

Road, to the stair core, on

site, having completed the

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foundations for Block B and

The temporary edge

cast 4No. pilecaps of the first

protection is being well

two bays of the Car Park.

coordinated with the beams,

Helix Contracting took over

as they are being lifted into

as the Principal Contractor

position. Evadx are also

and have been managing the

lifting packs of floor decking

site during the erection of

onto each level beams as

the steelwork, by Evadx, for

the frame progressed. This

Block B. Evadx have erected

will allow for the rapid

the steelwork frame, full

spreading of the decking

height from grid line 20 to

prior to welding of shear

14, and partially up to grid

studs, followed by pouring of

line 12.

concrete.

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The Soul

We are excited to update you of the ongoing works at the Soul site in Zanzibar.

Four key elements have seen progress over the past month: 1. Substructure works for building N1 initiated 2. Building N3 staircase foundation completed 3. Building N3 reinforcement steel initiated 4. Building N2 superstructure material procured 80

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Developments on offer in Q4 82

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Regent Plaza

Located in Manchester, one of the UK’s largest economies and the most established investment location outside of London; Regent Plaza is an impressive residential development on the edge of the city centre.

Demand for properties such as those at Regent Plaza is high; Manchester’s workforce is continuously growing with large numbers of professionals both from other UK locations and overseas relocating to the city year on year.

Prices from £179,959 and an assured 2 year 7% rental return.

The development, which will be built in a phased program of 5 unique blocks, is set to change the city’s skyline and will have resident benefits such as a 24-hour concierge, podium level gardens along with a residents lounge and gym.

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Wolverhampton Residences The Wolverhampton city centre residences have easily been one of our all-time most popular investment opportunities; investors have wisely seen the potential that a quality development in a prime, central location offers.

Infrastructure is a key factor when predicting the future of an investment location; Wolverhampton’s transport connections to neighbouring Birmingham by rail, a journey which takes around 15 minutes, already make it a natural location for investors to consider. The arrival of high-speed rail will only boost this part of the midlands further.

The plans for further regeneration and development are widespread across the city; Wolverhampton is a city which has room to grow and all the right foundations in place to support impressive capital gains for those who

Prices from ÂŁ115,000 and an 8% rental yield assured for 10 years.

invest at this crucial tipping point.

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Preston Central Apartments

Preston Central Apartments is a prestigious residential development situated on the picturesque Winckley Square in the very heart of Preston.

Planning permission was granted

Prices form ÂŁ127,000 and an 8% rental yield assured for 10 years.

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in May 2020 to convert an office into a luxury apartment building, works are underway at the 70 unit development and are expected to be completed in Q1 2022.

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The Soul

Located on Zanzibar’s exotic and beautiful East Coast, known for its white sandy beaches, crystal clear sea and jungle backdrop, The Soul is a fully serviced residentialleisure facility; a destination for modern globetrotters seeking a luxury place to stay in a tropical, unspoilt setting.

Designed to make the very most of the natural surrounds, The Soul is being developed by an experienced team who have an excellent track record specifically in creating luxury holiday resorts in Zanzibar and Tanzania.

With a growing tourism sector and demand for holiday rooms and hotels increasing year on year, Zanzibar presents investors with

Prices from $44,500 with up to 20% Net yield return.

an exciting prospect.

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Natex Student Residences

The Natex student residence

The plan is to invest £1bn to

development is situated on the former

expand Liverpool’s Knowledge

National Express Coach Station in

Quarter is to create a 1.8million

the city centre of Liverpool and is a

sq ft science, health and

5 minute walk from the University

technology hub, attracting world

of Liverpool and Liverpool John

class companies and reinforcing

Moores University. Strong demand

Liverpool’s reputation as a global

expected from all students, especially

leader in medicine

postgraduates and overseas students.

and technology.

Natex offers a variety of

The expansion of the Knowledge

accommodation units, from cluster

Quarter is expected to be a

bedrooms to studios, offering choice

major draw for international

for postgraduate and older students,

students with The University of

at a variety of price points.

Liverpool already having over 27% international students. or

years.

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Liv Lodges

Taking a ‘staycation’ has

visiting the country each

never been more popular

year – now is an ideal time

and in increasing numbers,

to consider investing in a

investors are turning to

holiday property.

holiday property investment due to the potential for

Liv Lodges is a collection of

impressive rental returns.

holiday investment properties in idyllic locations across

The combination of the

Britain which are set to offer

growing trend for UK

investors incredible rental

residents choosing to visit

returns each year. holiday

other parts of the country on their holidays rather than

let tax breaks.

travel abroad and the steady rise in the number of tourists 100

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Investment ....

Advice

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Diversifying your portfolio with John Tovell

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Why Diversify?

I

genuinely wanted to open this article without regurgitating a cliché… But,

alas, where the merits of diversification become a topic, it’s unavoidable.

Any savvy investor would be bonkers to have all of their eggs in one basket.

Essentially, all investments carry risk… therefore the strategic investor will protect their capital and returns by investing in varied areas/asset classes/ commodities that would each react differently to the same event.

Property should always form a part of a diverse and considered portfolio. In uncertain times, where some see their fortunes vanish on a dashboard before their eyes, there’s a lot to be said for tangible assets. Safe as houses as they say, good as gold.

If the pandemic of 2020 has shown us anything, it’s that we all need a “Plan B”. People at the top of their trades; elite sportspeople, entrepreneurs, entertainers, even coffee shop owners

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and hairdressers have seen their

Many of my recent buyers have

industries stopped in their tracks

been diversifying of late, in so

this year… the importance of

much that they’ve previously

diversification has never been

been very hands on, “professional

more apparent. Peace of mind is

landlords” if you will, in their

afforded by not being reliant on

property endeavours. Strategies

one golden goose.

like Buy-Rent-Refinance, fixerupper projects, live in landlords,

Interest rates at the moment are

HMO managers etc.. all require

so low that we are effectively

attention, activity and effort

paying the bank to keep our

to maintain. At a time where

money and so any well timed and

it’s imperative to focus, these

well considered investment should

seasoned landlords increasingly

prove a wiser use of your hard

want to explore an option

earned cash.

whereby they put capital to great use and don’t lift a finger…

What I’ve noticed is that there are many an option within property investment to spread risk, play multiple markets and not be reliant on the success of one strategy/region/development.

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Who buys during a recession or the downturn market?

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W

hen the market hits a speed

is fearful; whilst everyone else is

bump investors tend to find the

watching and waiting this investor

resource to take advantage of any price

is active.

drops or other incentives on offer, this is especially true of the UK property

Driven by the market correction,

market where the impact is usually

the astute investor is actually

limited and economic recovery rapid.

shopping with confidence, grabbing all the best deals in key

Though the UK property market is

areas knowing that he is going to

largely deemed to be a safe haven

achieve exponential growth once

there are typically only certain types

the market returns.

of investors who are active during a recession or a market downturn.

Astute Investors

Institutional Investors The second type of investor

To my mind, there are 3 types of

known to be active in a market

investors, each with a distinctive

downturn or recession is the

attitude and approach toward the

Institutional Investor.

market.

....

An Institutional Investor is an The first, an Astute Investor. A very

entity which will pool money

sophisticated type of investor who

to buy real estate, this group

usually maximizes his returns by timing

includes banks, hedge funds

his purchase right using the most simple

and Real Estate Investment

process; buying low and selling high.

Trusts (REITs). These investors often play an important role in

In terms of property investment, they

economic recovery due to the

actually refinance rather than selling

sheer size of the purchases.

to have enough capital to buy, and they repeat this process again and again

Usually entering the marketplace

while expanding their portfolio. This

after the Astute Investors, seeking

process often happens during a market

greater stability and ensuring the

downturn, while the rest of the world

timing of the purchase is right.

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The Herd

Calculated risk

The third, The Herd, these

As an observer, given the amount

type of investors buy because

of data in the last century, you

everyone else is buying.

can predict the market direction just by watching this aspect of

Easily driven by the media,

the market and by focusing on

following the crowd,

whos doing what and when, whilst

and most of the time

also taking into consideration

buying without a strategy

other factors affecting the global

or thorough research.

economy which goes hand in hand

Unfortunately for this type

with the property market.

of investor they’re commonly known to make fundamental

Back to the question who buys

investment mistakes and can

during a recession or market

easily be sold to if they don’t

downturn? Looking at the pattern

know what they’re doing.

and behaviour of the above, I turn the question to you the reader,

Usually entering after the

tell me in your opinion, who

very best opportunities have

opens their chequebook to buy

been snagged by the more

during a recession?

savvy investors. Occasionally though they are sometimes lucky and their timing can haphazardly result in success.

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Meet our newest team member

Nichola Harrison // Senior Portfolio Manager // Dubai 116

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Nichola’s thoughts on....

Where would you advise investors to buy UK property?

I think the UK is a great place to invest.

If you’re considering a particular city

....

or a particular town, focus on things such as transport and connectivity to larger cities. How great are the nearby universities? What are the retention rates of students that are going to university and then choosing to stay in that city or town and find a job there?

Also consider the urban regeneration and plans for local development or improvement to infrastructure. What is the real scope to invest your money there, is there potential for a strong rental yield and capital appreciation over time?

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What advice would you give to someone looking to start a property portfolio?

My advice to someone looking to build their property portfolio would be to stay very openminded, right from the get-go, and to really try and build a diverse portfolio. Look at the kind of asset classes available to figure out what might suit you

....

better. So, are you looking for long term capital appreciation?

Are you looking for a really strong rental yield? And try and build your portfolio around that. A final point, make sure that you have a really good exit route established, right from the very start.

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Thirlmere Deacon has a range of properties offering an 8% rental yield assurances for 10 years.

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Thirlmere Deacon London info@thirlmeredeacon.com + 44 (0) 2039507939 Lansdowne House, Berkeley Square, Mayfair, London, W1J 6ER

Thirlmere Deacon Dubai dubai@thirlmeredeacon.com +971 (0) 4 818 7277 Floor 30, Oberoi Hotel, Business Bay, Dubai, United Arab Emirates