Real Estate Investor Magazine South Africa Dec/Jan 2016/17 | Page 47

INVESTMENT SERIES: PART TWO cash flow. The Midlands and areas in the North of England offer stronger cash flow compared to London and the South East regions. 11 Capital growth London and the South East offer stronger capital growth compared to the Midlands and areas in the North of England. The Midlands and areas in the North of England offer instant equity through below market value acquisitions. However local affordability always need to be considered carefully when acquiring. 12 Best of both options The United Kingdom property market offers the unique ability to generate both cash flow and capital growth… UK Investment hot spots The West Midlands of the UK and in particular Birmingham has become a hot spot for investors. 2017 Ranking 4 Dublin 22 Birmingham 23 Manchester 24 Edinburgh 27 London 2016 Ranking Change 3 1 6 15 N/A N/A 18 14 15 16 ▶ ▶ www.reimag.co.za AROUND THE UK AND IRELAND ▶ ▶ Birmingham ranks as the highest UK city for investment prospects in the Emerging Trends in Real Estate® Europe 2017: New market realities report. However, Birmingham – which was one of last year’s top 10 property hotspots in Europe – has dropped 15 places to number 22 based on investors’ views of the city’s prospects in 2017. Commenting on the report’s findings, regional chairman of PwC in the Midlands, Matt Hammond said: “Birmingham may have dropped out of the top 10 leading European cities for investment prospects in 2017, reflecting how increased uncertainty due to the impact of Brexit could deter investors, but it remains the highest performing UK city, ahead of Manchester, Edinburgh and London. This may be in part due to the big improvements in the city’s infrastructure, including the continuing development of HS2, the extended tramlines and the halo effect created by the redevelopment of New Street Station and the opening of Grand Central. “The report also shows that office take-up in Birmingham in the first six months of 2016 was very healthy, exceeding 500,000 square feet. Added to this, earlier this year, PwC announced our own investment in the city’s property market. We will be relocating our Birmingham office in early 2019 to One Chamberlain Square, a landmark building in the city’s £500 million, transformational Paradise development. This investment reflects our commitment to our clients and people in Birmingham and our desire to offer them a truly firstclass working environment.” SOURCE: EMERGING TRENDS EUROPE SURVEY 2017 If you are interested in investing in UK property, building an HMO business, wanting to do a JV, provide finance with higher than market returns or secure an ongoing asset based income then contact info@reimag or go to www.reimag.co.za and click on INVESTMENTS DEC/JAN 2016 SA Real Estate Investor 45