Real Estate Investor Magazine South Africa November 2016 | Page 17

What really motivates investors to change strategy has
to be higher than average returns with good finance
in place, “ says Warren Brusse, of United Kingdom
Property Partners. In our opinion, the smart money is
on Birmingham, Hull, Grimsby and Cleethorpes here’s
why:
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Government backed regeneration and redevelopment investment
Employment opportunities has pushed up rental
demand
Prices are far cheaper in the North than the South
sometimes even less than half making affordability
easier for investors
Further growth for both homeowners and investors
is expected due to upbeat economic activity

Some Risks to be aware of offshore
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Buying a property online without viewing it first
Bargain prices could disguise hidden maintenance
or refurbishment costs
Cheap is not always better
Buying a property with a ‘lien’ in US
Buying a property in the UK with a short leasehold
lease expiry date
Property Managers are in the know in the areas
Buying in the wrong neighbourhood, street or
property
Not being able to sell if market is distressed
Knowing what true market value is

Insider tips

Property investing is not just about capital growth
but rather a combination of capital growth, insider
information and steady cash flow, which is the most
critical element of investing. It means having a sense
of curiosity, an attitude of opportunity with inherent
understanding of the market and knowing exactly
where the good deals are. “Herd investors tend to follow
the capital growth stats, while savvy investors know that
www.reimag.co.za

there is a deal in every country, every town, everyday
and anywhere in the world if you are driven enough to
do the research and leg work yourself as an investor.
Andrew Walker director of United Kingdom Property
Partners says that, ‘They have collectively sourced in
excess of 500 investment properties and further manage
in excess of 300 investment properties for investors.’
He says the best way is to invest alongside the seasoned
investor. “We are focused on partnering, investing and
managing for the long term, “ says Andrew Walker.

Upsides

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Strong rental yields in UK and US
Investor friendly markets
Attractive lending markets and rates
Cash flow positive properties
Strong future capital growth potential
Low stamp duties
Low entry costs

Getting ready to turn your investment dreams into
reality
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If you are investing for the first time go there and
get a feel for the properties, area and neigbourhood
before you buy
Spend a lot of time getting the right Property
Manager
Meet the refurbishment team and ask lots of
questions
Know what the local taxes are. In the US for
example they have both federal tax which varies
from state to state
Ensure that you have a thorough property
inspection carried out by a surveyor or licensed
operator
Always have an exit strategy upfront

RESOURCES
IP Global, Moneyweb
NOVEMBER 2016 SA Real Estate Investor

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