Investing is something that I have been getting serious about this year, taking a look at my pension as well as other investment opportunities. Today I am going to introduce you to property development with Forty/8, in collaboration with them.
What is investing?
Investing is a way to make your money work smarter and not harder. It is about taking some of our hard earned money and investing it for our future needs – usually for retirement later in life.
Investing takes a number of forms, including stocks and shares, pensions, property and more.
Why you should be investing in property
Having a diverse investment portfolio is important for a variety of reasons. The main reason for investment diversification is that it helps to reduce the risk of your investments. Lots of investors are choosing to invest in property for a variety of reasons.
Capital growth is one of the most attractive reasons to invest in property. Some properties have even doubled their value in just ten years, which is an amazing return! The price of housing is usually increasing, and with rental income on top, this makes property a very attractive investment.
Another reason that investors are choosing property right now is that interest rates are at an all time low. This means that property investors have a great opportunity to purchase additional properties to add to their portfolio, or even get started with their property investment journey.
Many investors also prefer to have a physical asset like property instead of stocks and shares as their investment.
I think that property is a great investment – so much so that my parents encouraged me to purchase my own property when I was 18 and heading off to university in Chester. Instead of paying rent to a landlord, I was able to rent out the spare rooms to other students and contribute towards paying the mortgage. When I graduated and came back home I was able to rent out the property, which I have now owed for 11 years.
Buying in the north of the country was much cheaper than where I live, in Cambridgeshire. My family have also purchased rental properties in Sheffield (more on that in a moment). Did you know that Manchester is one northern city that is showing great growth?
This vibrant city is overtaking the level of property growth and sales in London and other southern towns; it is a great place to purchase property in because:
- It has growth three times the national average
- 80 members of the FTSE 100 have a presence in Manchester
- The £800 million airport expansion will bring more work to the city
- Every year there are 95,000 students from both the UK and overseas who decide to study in Manchester
- There was a massive 98% rental occupancy in 2016 in the city
With higher rental yields than London, and lots of new jobs being generated, JLL Predict Property Growth in Manchester of 28.2% between 2017 and 2021.
What does buying “off plan” mean and why do it?
Buying a property “off plan” means buying it before it has been built. Although this sounds risky, it can be a great way to get a property at a discount.
Buying off plan has become really popular lately, and this trend is likely to continue for a number of reasons. They include:
- The savings to be made when buying a property off plan
- Less competition for a property
- Securing your home or investment early
Before buying off plan you should do your homework on the developer (looking at their previous developments) as well as seeking out mortgage companies who will provide mortgages for off plan properties.
I have experience in purchasing property off plan; my family aren't new to buying property off plan as investments. A few years ago we came together to approach developers of a new estate in Sheffield and negotiate a discount for purchasing a handful of properties at once. We all wanted to get into property investment, or increase our existing portfolios, so this was a great chance to get a discount from the developers and start generating a rental income.
We saved the developers the estate agent fees, but also helped them financially because they knew the properties had sold. We have had these properties for around 11 years now and it has worked out to be a great investment.
Forty/8 and The Hallmark
Forty/8 are a part of the Delph Property Group, and they offer properties to investors with the potential for a strong rental yield as well as excellent capital growth. They also pride themselves on presenting property investors with high specification investment properties located in prime city locations, such as Manchester.
They have been part of a trusted family business that has been making memorable homes since 1948, and the properties that they create are:
- Designed to enhance modern lifestyles
Forty/8 are working on a new development of luxury apartments in the vibrant city of Manchester called The Hallmark, due to be completed late 2019.
The Hallmark will house 145 luxury 1, 2 or 3 bedroom apartments, and is located 800m away from Victoria station and just a mile away from Arndale with 210 stores.
Forty/8 pride themselves on presenting property investors with high specification investment properties located in prime city locations, and one that come with great yields. This is their projected capital growth for The Hallmark based on either a 1 bedroom or 2 bedroom apartment:
For more information be sure to download The Hallmark's Brochure and Investment Guide.
More information about The Hallmark
Forty/8 are holding an investor weekend at The Park Inn, Manchester on 20-22th October from 10am – 5pm. Click here to register your interest in attending and finding out more about The Hallmark.
Disclaimer: before making any investment decisions, property or other, it is important to speak to a financial adviser to get advice for your needs and circumstances.