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The leader in Residential Property Investment in Brighton for the astute investor at home or abroad Property Financial Forecast International
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R.D.A. ESTATES
(WE ARRANGE IT ALL)
Residential Property Investment in
HONG KONG, UAE & SOUTH AFRICA NEWSLETTER NOVEMBER 2004 RDA Estates is a family business and was established during 1993 in both England and Hong Kong. It was created by Brian & Jean Shillinglaw who between them had spent many years as expatriates in the Far and Middle East and had recognised the frustration experienced by expatriates and local nationals seeking the opportunities available to get their feet on the UK property ladder. RDA since then has arranged the purchase & sale of 500 properties and has helped clients create very impressive property investment portfolios from a small initial outlay. It could have been 5500 properties but we have kept it under control and limited sales activities to create the personal family service and excellent results for clients. No hype, no flash! PROPERTY FUTURES! What do they promise? During the last couple of years property prices rose astronomically placing many UK first time buyers out of the reckoning when considering their desire to get on the property ladder or to take a step up the ladder. This was a bad and confusing time for all except the overseas based property owner and caused much sensational and unqualified gloom and fear in some of the national newspapers, regrettably copied overseas. The Bank of England’s policy of small bank rate increases over a period of time has clearly worked as intended to curb some excessive spending and to create a more stable property market. With the bank rate at the current 4.75%, inflation is almost half of targeted 2.1%, property prices are either stable or slightly increasing and employment is high. Experts believe there might be a 0.25% rise in bank rate by February with a possibility of a further rise of 0.25% to peak at 5.25% by May 2005. The same experts believe that stagnation of the property market will continue to late Spring 2005 when buyers will return as the fears of further rate increases diminish. Hopefully, the selling and buying aspect of the property market will then be back to normal and continue annual increases of up to 10%. The rental market in Brighton and Hove continues to be buoyant as ever, and based on an 80% mortgage, mortgage repayments continue to be more or less covered by rental payments. It is worth bearing in mind that persons living in UK are at a disadvantage in the property market compared with most expatriates because of high local and central government taxation, and “promises” of higher taxes to come soon. UK based owners of investment property also pay Capital Gains tax at 40%, for which those based overseas are not liable unless they return home permanently before the property is sold. Gloomy sensational newspaper reports of lower returns on Buy-to-Let property relate to UK buyers who have bought in areas where rental is not as constant as Brighton & Hove. There is no point in buying for investment in any area unless a buyer has fully researched the rental potential and ascertained net rent will contribute a major or total contribution to mortgage repayments. THE RDA ESTATES SINGLE PURCHASE OR PORTFOLIO PLAN. YOUR PENSION, YOUR FUTURE CASTLE OR JUST SENSIBLE ? The RDA Estates philosophy is to encourage the initial purchase and recommend use of the later increased equity and clients’ growth in personal status to create a portfolio of residential investment properties. It is better than any pension or stock market growth for British expatriates and nationals of other countries. If you have an available cash outlay of £25,000 to £36,000 or can raise such a figure with the help of relatives you are on the way to a comfortable future. RDA select properties in only the best residential areas of the resort city of Brighton & Hove where continuous rental is virtually guaranteed, and which provide the best prospect for capital gain. The purchase of a single one bed property with an 80% mortgage in Brighton & Hove should create a property value of about £240,000 in ten years for an outlay of £30,000, a return of 800%. Just sitting on that value without any further purchases from the increased equity is in itself a nice little bonus. £240,000 is a considerable sum mostly created by repayment of mortgage by net rent earned in this highest of UK rental areas. During the 10 years or more of the increasing property value many purchasers will experience personal job growth with increased income. Many clients’ of RDA Estates have realised some of the increased equity by remortgaging to increase their property portfolio. We have clients who from an initial purchase in 1993-95 have RDA portfolios of between 4 and 12 properties and who have in that time amassed net equity of £400K to £1.5 million all through the first outlay of about £20,000.
MAKE THIS YOUR PLAN FOR THE FUTURE WHILE
YOU WORK OVERSEAS
MORTGAGES It is always sensible to review your mortgage rates and compare with others available. It is more important for purchasers of residential investment property to maximise the return from rental by comparing rates. You should contact your current lender to obtain the latest rates. See also International Mortgage Plans latest mortgage rates on www.international-mortgage-plans.com or contact them by email at info@international-mortage-plans.com. Alternatively contact RDA in Hove for a personal introduction to IMP. BRIGHTON & HOVE PROPERTY PRICES REMAIN STABLE Nothing has changed. Studios at £80K-105K, One Beds £107-130K and Two/Three Beds £135K-180K. Remember through RDA Estates you are buying for about 30% of the agreed buying price including say 20% deposit and initial costs/fees while all or the majority of mortgage repayments are covered by net rental credit!
EXAMPLE
BRIGHTON & HOVE FACT FILE Ø The best known seaside and countryside resort on the South Coast of England. Ø A thriving local business and commuter city with a population of 250,000. Ø There is a business here in the ratio of 1 to every 17 of the population. Ø London is 54 miles north. 52 minutes by train. 75 minutes by car. Ø Heathrow 65 miles. 75 minutes by car. Gatwick 30 minutes by car or train. Ø Easy access to France by ferry from Newhaven, Dover, Portsmouth, Southampton. BRIGHTON & HOVE IS A COMMUTERS DREAM, A GREAT PLACE TO LIVE AND WORK. BEAUTIFUL COASTLINE. THE SUSSEX DOWNS 15 MINUTES. TWO UNIVERSITIES, HUNDREDS OF COLLEGES AND LOVELY PROPERTY. A FAVOURITE NOW AS IT WAS WITH KINGS & QUEENS 100 YEARS AGO. |