CSI PROP

💡How Has Property Investment Performed in the Last 25 Years?

👉Novice investors view property investment with some hesitation, since it requires more initial capital than investing in stocks, REITs (real estate investment trusts) or mutual funds. The more seasoned investor, however, knows very well that property is an indispensable addition to any portfolio.

👉Although property lacks the liquidity of the stock market, it is a compelling investment alternative with lower risk compared to many other investment vehicles and yields better (long-term) returns through rental income and capital appreciation

👉 Property investors are also able to take advantage of substantial tax benefits and have more leverage over their capital, enabling them to invest further. For example, UK property investors (depending on country of origin), enjoy personal tax relief worth thousands annually, on top of the current low and competitive mortgage rates resulting from low bank rates.

✅Why Property Investment?
Clearly, property property investment is one of the best avenues that investors should consider. Just buying the average house in a good market can already give you one of the best returns, compared to other investments. Imagine the potential for even better returns if investors buy strategically and do in-depth research to find the best locations to invest in.

Property markets where demand is high and supply is low, especially fast-growing cities, have the highest potential to perform. Investors should take a good look at these to get the best bang for their buck.

How Has Property Investment Performed in the Last 25 Years? Looking at the price growth performance of the residential property market in selected key countries from 1995 - 2020. How has property investment stacked up compared to other investments like the stock market ?

🔍Case Study: Why Investing In Poplar, East London Makes Sense

A LOT has been happening in East London. Previously eclipsed by the glamour of the West End, the East End has become the centre for the hip, happening, creative and innovative. East London is home to up-and-coming areas like Poplar and Aberfeldy Village.

More are choosing to reside in the East because of its relative affordability compared to the West, the gentrification that’s sweeping through and the creation of more jobs through developmental initiatives like Canary Wharf, East Bank, Stratford and the Asian Business Park. Some of the world’s largest tech companies like Google’s Innovation Hub and Amazon have also made their home in the East.

✅This short case study covers the following:
1️⃣Poplar: population density & house price growth
2️⃣London property price & rental growth
3️⃣Vacancy Rate

>> Population Growth Drives Housing Demand & Prices:
One of the UK’s most densely populated local authorities, Tower Hamlets, is located in East London. Over the past 30 years, the population of Tower Hamlets has more than doubled boasting a density of 16,237 persons per square kilometre. Projections by the Greater London Authority suggest that the population will increase by a further 16% by 2030—an equivalent of 14 residents per day until 2030!

🤔Poplar: Yay or Nay?

With life and work now back to normal in the UK since the pandemic, more have returned from the outskirts to the capital. The UK labour market has certainly staged a comeback from Covid in 2021 as demand for workers increase on the back of labour shortage as a result of Brexit. Financial job vacancies in London, especially, have surged beyond pre-pandemic levels to around twice that in 2020.

For full article, check out the link below:
https://csiprop.com/why-investing-in-poplar-east-london-makes-sense/ -37454

👉Manchester Property Benefits from Victoria North Urban Renewal:

✅Manchester has been ranked The Economist’s Most Liveable City in the UK for 11 consecutive years (even through the pandemic!), maintaining its position within the ranking’s top tier, globally, since 2011. Manchester was also named the 3rd Best City in the World in Time Out’s most recent rankings in 2021—a good 10 places ahead of London!

✅Indeed, this unassuming city has been the heartbeat of the UK’s Northern Powerhouse, and the growth of its population is testament to its liveability. Data from the Office for National Statistics (ONS) shows Manchester’s appeal as a place to live and work had grown tremendously, charting an estimated population growth rate of 31% from 2001 to 2021, making it the fastest-growing city in the UK. This is 2 times faster than the growth of Birmingham, a city that is 2 times larger!

For full article, you may check it out below:
https://csiprop.com/manchester-property-benefits-from-victoria-north-urban-renewal/

Things to Consider Before Investing in Overseas Properties:

[ ✅ Investing in Overseas Properties: An Investment Strategy ]
Previously purchased as holiday or retirement homes by the ultra wealthy, buying overseas properties has become more mainstream among astute investors. A key benefit of overseas property investment is diversification, reducing the risk of investments from being concentrated in a single area while improving the returns of an investment portfolio.

[ ✅ Why Should You Consider Investing Overseas? ]
Residential real estate has proven to be particularly resilient to the pandemic and the resulting economic shockwaves, with global real estate investment volumes bouncing back in 2021. Residential property overtook offices for the first time, and became largest sector for investment globally in 2021.

[ ✅ Can HDB Property Owners Invest in Residential Overseas Properties? ]
HDB property owners can invest in residential overseas properties only after fulfilling the Minimum Occupation Period (MOP) of 5 years. Once the MOP is over, there is no limit on the number of private residential properties you may purchase. HDB property owners must dispose of their HDB flats within 6 months of purchasing your overseas residential property.

[ ✅ Can CPF Savings be Used to Invest in Overseas Properties? ]
Savings from the Central Provident Fund (CPF) cannot be used to invest in overseas properties. Also, any loans taken from a Singaporean bank to facilitate the purchase of overseas properties will be subjected to TDSR.

[ ✅ Other Considerations: The CSI Property Game Plan ]
There are other considerations to look into before making that leap to invest in overseas properties. The best way to do it is by using the CSI Property Game Plan which focuses on 3 key pillars that help empower investors to grow wealth exponentially even if they have little time or experience.

For holistic view in considering to invest in overseas properties, read the full article below!

https://csiprop.com/things-to-consider-before-investing-in-overseas-properties/

🇬🇧Why Inflation, Weak Pound & Recession Are The Perfect Storm For UK Property:

✅ #1 - UK Property Fundamentals: Critical Undersupply Drives House Prices for Decades to Come

✅ #2 - UK Property A Safe & Natural Hedge Against Recession and Inflation

✅ #3 - Affordable UK Currency & Tax Reliefs Increases ROI

There is opportunity in a crisis: now the perfect storm for investing in UK property. It’s normal for new investors to get the jitters, but recession is a natural part of market economies, having occurred cyclically almost every decade. Property values, unlike stocks, does not fluctuate wildly and is a natural hedge against inflation and recession. Seasoned investors play the long game, focus on long-term goals and are prepared for episodes of volatility. Removing emotion, filtering the noise of day-to-day headlines and looking beyond temporary fluctuations enable them to react rationally.

To find out more, read the full article below:

Why Inflation, Weak Pound & Recession Are The Perfect Storm For UK Property With recession looming, investors are remaining bullish about the UK property market. Here are the Top 3 Reasons Why UK property remains a sound investment today.

🏠Property investment is a steady game. Its low risk profile and ability to bring returns in the form of capital growth AND rental income is what makes it very attractive.

But it is a slow game, too, because it takes time⏳: your money gets tied up in bank loans, which limits the number of properties you can buy at one time and consequentially, your ability to double, triple or quadruple your returns. Or so we think.

💡But there’s a way to multiply your properties and increase your returns faster without feeling over-leveraged to the gills. We explain how refinancing is an important strategy/ hack in helping you build wealth.

For full article, read here:
https://csiprop.com/refinancing-to-buy-more-properties-grow-passive-income-faster/

✍️How and Where to Invest In A Buyers Market? 🧐

With inflation gripping the global housing market, interest rates have skyrocketed causing many to wonder if the property market would crash, but signs are indicating a buyers market.

In 🇸🇬Singapore, where home ownership is high (90%), 55% now plan to delay plans to buy a home whilst 24% are considering dropping their plans to buy a home at all.

In 🇺🇸America, there is a buyer-seller standoff because prices have become too unaffordable for the former.

In 🇦🇺Australia, where availability of rental vacancies are now at its lowest since before the pandemic, interest rates are being passed in full to home loan customers.

🌎Globally, higher living and borrowing costs are slowing demand and pushing down house prices.

As house prices adjust and the market becomes more favourable for buyers, a common impulse for investors is to hold back from investing because of fear. Understandably, the media’s constant coverage of high interest rates has further amplified fear. However, it is very possible to grow wealth in the current climate, just as in times of crisis. As we enter into the buyers market phase, here’s how and where to invest to grow wealth.

For more information, check out the link below: 👇

https://csiprop.com/how-and-where-to-invest-in-a-buyers-market/

🇬🇧How the Renters Reform Bill Will Affect UK Landlords.🇬🇧

🤩Hidden Benefits of the Renters Reform Bill for Landlords:
There is a lot to gain from the Renters Reform Bill, not just for renters, but also for landlords. Here are the top benefits of the Bill for landlords:

👉i) Increased Tenant Stability
While the introduction of indefinite tenancies and the abolition of Section 21 eviction notices allows tenants to leave within a shorter period of time, it also means they can opt to stay much longer. Moving is not easy and tenants typically prefer to stick with a good landlord, thus reducing turnover and potentially minimising void periods.

👉ii) Enhanced Reputation
Landlords that adhere to new regulations and who provide high-quality, well-maintained properties will be well esteemed among the wider tenant community. This leads to increased demand for their properties, which means constant rental income flow.

👉iii) Improved Property Standards
The improvement in the overall quality of the rental market because of the Bill’s focus on advancing rental property standards is a boon to landlords. Good living standards attracts tenants and helps increase property values in the long run.

👉iv) Clearer Regulations
With clearer regulations, the Bill makes it easier for landlords to navigate the rental market as it reduces confusion, ensures compliance and minimises the risk of unintentional legal violations.

👉v) Streamlined Redress Mechanisms
The requirement for landlords to join an ombudsman scheme means simpler and more accessible redress mechanisms for tenants’ complaints, leading to more efficient resolution of disputes and avoiding prolonged legal battles.

Full article can be found here:
https://csiprop.com/how-the-renters-reform-bill-will-affect-uk-landlords/

🔍Why Manchester Rental Rates Grew 20%, Outperforming London Again.

Top 5 Factors Driving Manchester’s Remarkable Ascent:

✅ #1. Economic Resilience - Manchester’s diverse and resilient economy has played a pivotal role in bolstering its rental market. With a thriving technology sector, burgeoning creative industry, and a strong presence of multinational companies, the city has become an attractive hub for professionals and young job-seekers from all over.

✅ #2. Population Growth Constricts Chronic Housing Undersupply & Drives Rental Rates - The growth of office spaces in the city has risen above the average of the last 15 years. JLL reports that the Mancunian economy grew by 32% (GVA), whilst job opportunities increased by 28% over the last decade, far outpacing the national performance of 15% and 11%, respectively.

✅ #3. Educational Excellence - Manchester’s reputation as a centre of educational excellence cannot be overstated.

✅ #4. Infrastructure Investments & Regeneration - The Manchester of today couldn’t be more different from the 1960s and 70s. The UK’s Most Liveable City owes its urban renaissance to mammoth regeneration plans that have been crucial in creating jobs, driving the economy and population, and improving transport links, facilities and amenities since the 2000s, beginning with the redevelopment of Spinningfields.

✅ #5. Foreign Investment - Key industries in this remarkable city include digital tech, creative media, life sciences & advanced manufacturing. International investors have recognized Manchester’s real estate potential and continue to pour capital into the city’s property market.

Find out more below:

Why Manchester Rental Rates Grew 20%, Outperforming London Again Manchester defies economic uncertainties again. New data shows rent rates in the city surging by a staggering 20%, outperforming London and other top UK cities.

😮5 Hard Facts About UK House Prices During Recession:

#1 - The Media’s Job & The Reader’s Responsibility
#2 - Focus On Specifics: Area vs Average
#3 - House Price Falls: Did Prices Actually Plummet or Is It A Slowdown in Annual Growth?
#4 - Historical Evidence: UK Housing Resilient in the Face of Recession
#5 - Fundamental Driver of House Price Growth: Undersupply

So How Savvy an Investor Are You? 🤔

There will likely be more bad news in the media over the coming months as the markets ride out the effects of inflation. Seasoned investors will remain unfazed by temporary blips as they understand the dynamics of supply and demand, and that the property cycle is a fact. They understand that the resilience of property as an investment lies in the fact that everyone needs a home. In economically challenging times, expensive holidays and hobbies, and fancy meals—not the roof over our heads—will always be the first to go.

Savvy investors also know the advantage of investing in a buyers market and in choosing projects, like Middlewood Locks, that are priced competitively because the developer had locked in land and construction prices earlier. With construction and land prices at such a current high, developers who bought land in more recent times for new builds are now launching their projects at £400K+ whilst Middlewood Locks is launching at a far lower price of £300K+.

However, if you’re in it for a quick buck simply because you cannot see beyond your foot, please invest in stocks.

👇For full article, check out the link below:👇

5 Hard Facts About UK House Prices During Recession Recession has been a hot topic in the news and will continue to make headlines for some time. As a UK landlord, here are 5 hard facts you need to know now.