Top 10 rental investment hotspots

Some interesting research from QBGroup.eu takes an in-depth look at gross and real yields in the buy-to-let market – they argue that it is important for investors to understand the real yield which also takes into account the change in value of the investment property.

The analysis, carried out in February 2013, is based on typical 2 bedroom properties and combines changes in the capital values and gross rental yields to reveal a top 10 of property investment hotspots in the UK market for buy-to-let investors.

Reiza KR Qureshi, director at QBGroup.eu, said: “Most landlords appreciate that gross rental yields do not take account of the costs of maintaining, letting and insuring a property, yet many fail to consider the rise and fall of capital values in this equation. While we would expect the key rental hotspots to typically mirror economic activity across the country, the revelation in this new research is that the highest real yields are all in London. Despite the initial high capital costs, the combination of accumulating capital value and reasonable gross yields can make these areas look very attractive to potential investors.

“It’s also important to note that these top performing areas are all in central London, a specialised sub-market of the wider UK property market and one where many of its residents have survived the recession well. The people who reside in such areas have maintained their employment status and continue to enjoy a successful career path. Key demand drivers are equally about easy access to work and social networks. Shoreditch is a perfect example and the consistent high demand for such properties has kept both sales and rental prices on an upward trajectory.

“Given our new take on yields, at the other end of the scale there are areas of the UK where landlords are losing money just by owning the property, even if their properties not subject to void periods and attract healthy gross yields. For example, the real yield for Margate property at -9.8% is a real concern for landlords, even though the a gross rental yield is currently 5.1%.”

Top 10 Property Investment Locations – based on Real Rental Yields for 2-bed properties

Location	% change in average sales price vs. Feb’12	Gross rental yield	REAL YIELD
1 – Shoreditch	32.22%	4.33%	36.55%
2 – Bloomsbury	33.52%	3.02%	36.54%
3 – Bethnal Green	28.81%	4.89%	33.70%
4 – Elephant & Castle	27.78%	4.29%	32.07%
5 – Chelsea	28.14%	3.06%	31.20%
6 – Bermondsey	26.44%	4.54%	30.98%
7 – Battersea	25.00%	4.12%	29.12%
8 – Hammersmith	25.01%	4.02%	29.04%
9 – West Brompton	25.01%	3.81%	28.82%
10 –Vauxhall	25.00%	3.64%	28.64%

Richard Green (Research & Development)

QB Group Holding Co (UK)

 

 

What To Consider When Finding Your First Buy-to-Let Property

What To Consider When Finding Your First Buy-to-Let Property


So, you’ve decided you want to make the leap into buy-to-let investment.  Now comes the hard work – including finding the perfect property with which to begin your career as a landlord. Read our tips to find out what to bear in mind when choosing a potential rental.

1) Consider demand and target markets
Don’t just go for the cheapest property you can find. As an investor, you need to make your money work as hard for you as possible, so do your research and identify the areas where rental homes are in demand. It’s likely these parts of town will be well connected to road, rail and bus transport links and have a good range of local shops.

Also, don’t forget that different tenants will have different requirements. Students will want to live somewhere cheap and close to public transport that goes to their university, and will favour houses and flats with a few bedrooms so they can share the rent, while families are likely to prefer a quiet, low-crime area with good schools and decent gardens.

A good way to find out where’s best to buy is to speak us QBGROUP

2) Be specific with property features
As well as knowing your market, you should also know exactly what kind of property you want to buy. For example, if you’re looking to let to families, you’ll probably want to search for houses with at least three bedrooms, a good-sized kitchen and a large enough bathroom. You’ll also need to decide whether you’re prepared to do any renovation work.

This will help save time by narrowing your search and enabling you to go straight to estate agents with your requirements, so you only end up viewing the properties that you’re most likely to buy. This will also convey a professional image to agents, making them more willing to cooperate and speed things up.

Once you’ve decided on a property you want to buy, be sure to acquire as much information about it as possible, including its potential resale value once any renovation work has been factored in. Even if you intend to stay in the buy-to-let business for a while, the market and your own circumstances can change at any point, so it pays to think about these things in advance.

3) Know your budget – and stick to it
This might seem like a simple piece of advice, but it’s easy to get carried away and end up spending much more than you originally intended. Speak to a buy-to-let mortgage adviser about how much you’re likely to be able to borrow, and factor in costs such as legal fees and landlord-specific paperwork, as well as buildings insurance (you can find appropriate cover through companies such as Landlord Insurance.

Once you’ve chosen a property you want to buy, be sure you know what the likely rental income will be and weigh this up against your mortgage repayments. Also, if you decide to use a lettings agent to help you market and tenant your property, you will need to pay them a percentage fee, which is typically taken annually.

While this might seem like a downside, a lettings agency can be particularly useful to first-time landlords in taking care of the various tasks associated with renting out and maintaining a buy-to-let property, including many things that you’re unlikely to have already thought of.

Jonathan Robinson
QB Lettings & Management Co
 

Top Tips For Efficient Bathroom Planning

Top Tips For Efficient Bathroom Planning

When it comes to planning and designing for your home, the bathroom is arguably one of the more important rooms to make sure you get absolutely right. You will spend an awful lot of time in it and when guests come to stay, you can almost guarantee that they will see it! Therefore, you want to make sure it meets all of your practical as well as aesthetic criteria.

Think about the space

Before you choose the bath (if necessary), shower, toilet and sink, make sure you know where they are going to go based on where the plumbing is – and consider what else needs to fit in the space. Do you want a linen basket? In which case, you will need to factor in a corner. What about bathroom scales? Or perhaps a chair next to the tub if you have little ones who you will want to sit with at bath time?

It is also important to make sure you factor storage space into the design plan. There is nothing more unsightly in a bathroom than hairbrushes, numerous tubes of toothpaste and hundreds of bottles of lotions and potions scattered all over the shop.

Think about what needs to fit in the room so that you know what space you have to work with.

Choose the right fittings.

This is probably the most important part, and you may wish to enlist the help of a professional interior designer, or perhaps a friend with an eye for design, to ensure you pick the right fittings. Do you want a bathroom with a modern feel or are you more of a traditionalist? Ultra modern bathrooms can look out of place in older or listed property.

Curved edges, matte finishes and brass fittings tend to lend themselves to a more classic look. Sharper edges, chrome surfaces and twinkly lights will give your bathroom a brighter, more modern feel.

Furthermore, think about the alternative types of fittings – for example, are you part of a big family? If so, might a double sink be more appropriate than a single one?

Don’t scrimp

When it comes to plumbing and electrics, unless you are quite the Handy Andy, it is absolutely necessary to hire a professional to ensure everything is installed, fitted, connected, plumbed and sealed properly. Do your research and get quotes from several plumbers in London so you can make an educated decision and guarantee you hire the right person for the job. The last thing you need is spraying pipes, leaky grouting and a flooded hall when you come to use your beautiful new bathroom. A top tip to save money though is to try and plan the room so that you keep existing plumbing close to where it is. More pipe equals more money and more time, both of which cost more money!

The finishing touches

With all the units properly fitted, this is where the fun begins – see your bathroom as a blank canvas and the curtains, mats, soap dishes, towels and mirrors as your paintbox.

One of the oldest tricks in the book for making a room feel bigger is to use mirrors. The bigger the mirror, the more spacious the room is likely to feel. However, a word of caution – if you are going to have big mirrors, they must be kept gleaming, otherwise it will make the whole bathroom seem dirty, even if it isn’t.

All of these finer details should complement the period style of the fittings. For example, if you are going for a more traditional look, you may like to have a free-standing wooden loo roll holder. If you fancy a more modern feel, a chrome, wall-mounted one would probably be more suitable, for example.

Sara Kimberly
Interior Designer

www.QBGroup.eu

Rent To Rent The latest Passive Income Property Scam

Rent To Rent The latest Passive Income Property Scam

According to the Guardian newspaper another property scam is doing the rounds. Actually, this one is not new, but it is being heavily promoted at various property networking events. Most property networking events are now little more than places to market scams and dodgy ways of doing things, but that’s another story.

So the premise is that you find a landlord who owns a 3 bed 2 reception ( or bigger) property and rent it from them. You then split the property yourself into rooms and sublet  them as single rooms. A Typical 3 bed/ 2 reception property can in this way give an uplift in profit. This is often called multi-letting, HMO’s or just room lets. In this way, a naive landlord will not necessarily know they have been scammed.

Another way, which is being promoted openly, is to create different contracts such as commercial licenses for the prospective tenants- rather then a regular AST and do the above with the full knowledge of the landlord. The benefit to the landlord is a guaranteed rent and for someone else to manage their property, the middle man then takes the uplift in room by room rents as profit. Everybody wins. Except the tenant, oh yeah, and the landlord.

Now, just to be clear, I have nothing against multi-let or HMO property. I’ve written about it many times, and, if done properly, it is a great way to create a good steady income with very few void periods. A note of caution, just in case there are any council tenants reading this, it is illegal to sublet a council property.

Last night on Twitter I had a lengthy discussion with a couple of legal bods about this, who are already dealing with the fallout from these schemes. My own opinion is that sub letting is fraught with so many potential things that can go wrong that its hard to know where to start listing them! Here are a few off of the top of my head:

1. Tenants have no AST, meaning, if you need to get them out it can be extremely difficult.
2. If the original non resident ‘tenant’ or ‘manager’ disappears, the landlord is still responsible.
3. Most mortgage companies have clauses against sub letting. The person on the mortgage document could be repossessed and be sued by the bank.
4. Tenants have very little if any legal protection.
5. The landlord could more easily be prosecuted than the guy in the middle.
6. “Licenses” issued to tenants in place of AST’s are not worth the paper they are written on. As a landlord, you probably won’t have a legal leg to stand on, not to mention the cost in sorting out such a mess should it go wrong.
7. What about safety for the tenants. HMO’s have safety rules for a reason.
8. Sub letting without the insurers knowledge would invalidate the insurance.
9. Letting agents are being targeted to give info on landlords – for a cash bung.
10. If the mortgagee does not pay the mortgage, what happens to everyone in between?

In my experience, regardless of how much information is available, tenants still do not know their rights, and neither to many landlords. The rise of ‘accidental landlords’ can only exacerbate situations like this because of their lack of knowledge and experience. It is these landlords that will be targeted first.

If you were to set yourself up as the middle man, as these people are teaching, you will need to know how to manage huge amounts of tenants and landlords, not to mention the repairs, and let me tell you, there ain’t nuthin ‘passive’ about that! I wish folks would wake up and see that there is no such thing as a  ‘passive income’ in property.


As any HMO landlord knows, houses of multiple occupation take a bigger battering than single lets. Things get broken more regularly, and there is often a bigger repair bill for electrical items, boilers, plumbing, gardening and a myriad of other things.

As a landlord, if you can’t make money in a market that has high demand and higher profit than it has has been for years, then you should not be a landlord in the first place. If you allow someone else to control the asset, then you will probably lose out one way or another, it is really just a matter of time. Lastly, as my legal friend on Twitter said, “Rent To Rent is like watching a slow motion car crash.”

Reiza K R Qureshi
Director

QB GROUP 

A breath of fresh air in the student property market

Most people reading this will know that we are an advocate of the student property market here at Fresh Invest. With good management and an attractive property you can benefit from very high and secure rental yields.

With student demand increasing year upon year and a massive shortage in student accommodation currently available in the UK, it seems like Student Property is a great area for investment and many of our investors have been taking advantage of that fact and profiting

There are many different facets of student property available for investment and we feel that our Student HMO’s are the best opportunity out there right now.

Our latest Student Investment in Liverpool is ideal for those investors looking for large returns but still looking to maintain an easy exit strategy from the investment, with high capital growth.

We now have just 4 houses remaining from 9 in total on this development site and we expect them to sell quickly. The development was only released around 2 weeks ago and since then we have had significant interest in the properties.

Our Liverpool Student Investment was completely designed by us. The developer came to us at the end of last year looking for an idea of how best to develop out a piece of land he currently owned, taking advantage of its location. With our knowledge of the student market up there and previous experience of selling student property in Liverpool and the demand for that type of property from both investors and students, we designed a scheme with the investor in mind, minimising their exposure to risk, whilst maximising returns in capital and rental income.

The site lies within 2 miles of 3 major university campuses and just 2.9 miles from a fourth. With a bus stop just 100 metres from the development, communications with the university are great and students will have no problem getting to the various campuses

The investment provides the investor with the opportunity to invest just £57,000 and generate a net income of £15,310 per year, after mortgage costs, maintenance and management fees!

INVESTMENT BREAKDOWN:
6 Bedroom Student Town house.

• Price: £190,000
• Deposit @ 30%: £57,000
• Mortgage Amount @70%: £133,000
• Yearly Rental Income: £25,500
• Gross Yield: 13.42%
• Mortgage Cost @5%: £6,650
• Maintenance: £1,500
• Management: £2,040
• Net Return Per Month: £1,276 (£15,310 per annum)

If you would like some further information on any of our student property investments, please either use the appropriate contact form on the website, or send us an email at info@qbinvest.co.uk

Student Property Investment – The Facts

Student Pod investment has most definitely been the “buzz word” in property investment over the last year.
It seems new pod developments are being marketed on a daily basis but are they really all they are cut out to be?

Let’s look at the facts:

History of student property investment
Let’s start with the reason all of these private student halls are being built?

The 2010-2011 academic year saw grants for capital projects, such as new buildings, cut by 58% in cash terms to £223m. In the 2009-2010 academic year, universities received £532m for building works.

Because of this universities were not able to respond to the increased demand from students and had to start to rely on 3^rd party builders to satisfy that demand.

Student Pod developers can be easily classed into 2 different categories.

1. Large developers that are cash rich and can build out with their own funds:
This type of developer can afford to purchase a site, gain planning then forward sell to a fund at between 5-8% yields. Generally the developer will secure a FRI lease from the University for 25 years or so. The fund will then agree to purchase on completion.

2. Smaller developers or land owners that want to maximise their profit from land owned:
This type of developer/land owner generally either has an option on or owns the prospective land but does not have the funds to build out. They need to find 3^rd party funding outside of the mainstream. These are generally the types of development that are offered to the individual investors.

3^rd Party funding is provided by the investors who put down a percentage of the purchase price on exchange which is used by the developer in the construction process.

The absolute key to this type of proposal is to protect the investors deposit, this can be done by staging the tranches in which it is paid to the developer and making sure that a solicitor holds all deposits in a client account. For the developer to receive funds an independent architect would need to sign off each build stage.

How are they priced?
Good question, I will show you how they should be priced first of all.

1. You decide what you want to build, so self contained pods, houses or flats.
2. You work out what rental each room should achieve and the number of weeks they will be rented at
3. You then work out the monthly, then yearly income that can be derived from the site, taking away the maintenance and management fee to give a net figure, divide this by the yield you want to offer and this gives you a sale price.
4. Take away the agents fee and the site cost and you have net profit to the developer.

If the developer is happy with the level of profit then the investment goes to market, if not, it should be canned.

The Problem:
I won’t beat around the bush, its greedy developers or agents.

Normally when you get to point 4 above and it doesn’t work then it’s the end of the line, unless the developer wants to take less profit or the agent wants to take less commission.

What seems to be happening now is that investment companies use astronomical weekly rentals along with a high number of rental weeks to achieve higher rental returns, and in turn higher sales figures. Sometimes they guarantee this for a year or two but this is just worked into their profit.

I’m seeing a lot of opportunities that are advertised with a guaranteed return for 2 years but with absolutely no comparables to show what these pods will rent for after those 2 years.

An example, if we work to £100pw over 50 weeks -20% for management and maintenance = £4,000 (£40,000) on a 10% yield.

If this doesn’t work, increase the figure to £125pw over 52 weeks – 20% for management and maintenance = £5,200 (£52,000) on a 10% yield.

So you’ve paid £12,000 more for a property already, the developer can afford to guarantee this for 2 years because it will only cost him £3,000 if he rents at the figures of £100pw over 50 weeks.

The downside for the investor is that not only have they paid £12,000 more for the property, but their property will only be achieving a 7.6% yield after the first 2 years!

How would I know if the rentals are realistic?
A good investment company should provide you with full due diligence on the investment opportunity offered. It isn’t enough to offer a guarantee, you should be provided with comparables that show the rental being guaranteed is correct.

All investment companies should have conducted this due diligence as its service to you, if it’s not been done; you need to ask yourself why.

Don’t bury your head in the sand….You need to conduct your own due diligence as well, you can do this by phoning the university accommodation office and ask them about the area you are looking to buy the pod in, also speak to letting agents, its sometimes best to pose as an existing landlord, say you are looking to let your property and ask what you may get for it.

Is Student Accommodation sustainable and what happens if the market declines?
Whilst student numbers remain strong, yes it is. Liverpool universities showed an increase in student numbers last year and good quality student accommodation in favourable areas will always be in demand. What we will start to see is the death of the single landlord that owns a badly furnished house in an average area. I know when I was a student this was our only choice outside of halls. We will see good quality student houses and apartments that are regularly refurbished and well managed flourish but ones that are not will decline.

The management of student accommodation has moved forward massively over the last 10 years, gone are the days that a large percentage of landlords shied away from the student market; with a strong professional management company there should be no more hassle renting to students than there is to professional tenants.

QB Group
82 Great Eastern Street
London EC2A 3JF
T:  +44 (0) 8454 636 856
     +44 (0) 2071 250 542
     +44 (0) 7961 644 344 (24hr cell)
F:  +44 (0) 2088 199 575
E:  info@qbgroup.eu
W: www.qbgroup.eu
W: www.qbinvest.co.uk

Barbados property – promised vs delivered

As construction continues at an admirable rate on our Barbados Property Investments, we believed now would be a good time to update investors with exactly how the developer did, with a picture of what was promised on one of our investments and what is being delivered as we near completion.

Ixora Resort is a development of ten one bed apartments and one, duplex two bed apartment. The development was priced very well by the developer and therefore sold out long before completion.
One of the real benefits for investors in Ixora Resort was the fact that, due to the low initial purchasing prices they make fantastic investments as well as an ideal holiday home. The rental rates on the west coast of Barbados are typically very high, so it does not take many weeks occupancy to make these apartments a very high returning investment. All of the apartments were sold as freehold condominiums with no usage restrictions, which is a rarity in Barbados, where many developments will limit personal usage to 5 weeks per year.

The developer of our resorts in Barbados does not just offer great prices, but they offer security when investing in their off-plan developments. They also offer an online area to each purchaser with details of any correspondence had with the developer, a running construction progress page and the ability to change the internal specifications of apartments from colour choices down to the relocation of non load bearing walls.
We have always felt that it is important, when investing off-plan, to invest with a developer that has long term plans for the area you are investing in. The developer of our Barbados investments has another 3 sites in Barbados, you can be sure they will try to satisfy every client’s best interest so that they are able to continue selling out developments going forward.

With this, we thought we would exclusively tell our clients that they have purchased another site and we will soon begin the marketing process on another great Barbados investment. The site is a beautiful south coast hotel which will be refurbished and turned into self-contained apartments, from studios to 2 beds. Prices will be kept low like their previous two developments in Barbados and the fact that this development is beachfront will only help it achieve sold out status even quicker than the last developments.

Barbados Property, Weston Resort – promised vs delivered

As our property investment in Barbados, Weston Resort approaches completion, we thought we would show our valued clients some details of another success story for investors on a Fresh Invest Overseas Property Investment.

We started selling the Weston Resort development back in 2010, after a long period of due diligence where we looked at every development up and down the coastline of Barbados we settled with Weston Resort for a number of reasons:

• Weston Resort comfortably out priced any similar development in the locality,
• The developer for Weston Resort is a well established company in the UK with long term plans in Barbados,
• Through a good presale phase and innovative payment plans we knew the developer had the funds to build,
• All funds from buyers were ring-fenced and only used to build on this development,
• The apartments were all sold as freehold condominiums, giving the purchaser maximum control post completion,
• Common areas are owned by the owners’ co-operative meaning maintenance fees are kept low… In some cases, 90% lower than surrounding developments!
• There were a number of offers from professional rental operators, who on completion were happy to take on the rental management of the apartments.
• Through our due diligence we found that the apartments should yield in excess of 10% AFTER management costs.

As soon as we launched Weston Resort it got a great response and many units were sold at very early stages to savvy investors who could see the value on offer. Investors took advantage of flexible payment plans and were thrilled to see such security throughout the build program, with individual stages being signed off prior to funds being released from their solicitor to the developer.

One thing which we came to notice very quickly was the professionalism of the developer we were partnered with. All purchasers on the development were given updates through the build schedule of the progress along with anything else which was having an effect on the progress.

All purchasers were also given access to their own online secure area where construction pictures were posted regularly and owners were also given the chance to design the interior of their apartment using a clever program put together by the developer, where it would simulate the choices made for the purchaser online.

Now the development is in its completion phase, we do have a number of units for resale from purchasers whose situation have changed since their investment. The resales are all priced very well. With prices from $248,950 these are still far better value than the local competition.
Contact us today to discuss any of the resale apartments we currently have available and we will be happy to talk you through the development and arrange any viewings or purchases you may like to make.

QB Group
82 Great Eastern Street
London EC2A 3JF
T:  +44 (0) 8454 636 856
     +44 (0) 2071 250 542
     +44 (0) 7961 644 344 (24hr cell)
F:  +44 (0) 2088 199 575
E:  info@qbgroup.eu
W: www.qbgroup.eu
W: www.qbinvest.co.uk

Spanish Property - A Eurozone Investment That Won’t Break The Bank

The Kyero Q3 Spanish House Price Index has just been released and it isn’t good news…

In fact it is another blow for those owners and developers who have Spanish property on their hands and need to sell. This is because over the last 12 months, the average asking price of Spanish property has again plummeted from €267K to €244k.

Yet another 8.5% reduction that rubs salt in the wounds of those hoping for some sign of an upturn in Spain.
The upturn certainly hasn’t arrived yet, however this has not stopped a large number of investors and buyers from the colder climbs of Europe rushing in to snap up properties on the Spanish Costas while they still can.
I can’t say I blame them either. If someone offered me a property in somewhere like Marbella with a 70% discount, I would be on the plane faster than you can say Easy Jet.

This is what is happening now in Spain and unlike some of the other struggling countries in Europe who are still feeling the effects of economic instability, Spain will always have its year round climate and the tourists who arrive every year for their holidays.

I was talking to one of my Irish friends Fergus over the weekend and when I asked how much it would be to buy a property with a sea view in Ireland he said, “How much? In these parts we offer to buy each other properties so that we can get change for the bus fare out of here.”

It is an interesting contrast with the mood in Spain where there has rarely been so much interest from investors. Of course Ireland is a very different kind of market to the one you will find in Spain and it doesn’t have the bonus of  year round sunshine and warm weather.

The real draw for those investors when it comes to Spanish property is not only the discounted prices, but also the lower risks involved. Any investor knows that buying property on the Spanish coast is as much a lifestyle choice as it is a long term investment.

Those investors also know that at such low prices and big discounts, the outside risk that economic volatility will take its toll in Spain is mitigated. Yes Spain is still in a recession and yes its house prices continue to fall, however they can only fall so far.

In the long term, London aside, Spanish property at a 70% discount is still the number one choice in the struggling EU.

Do you think Spanish property is a good investment? Please leave your comments below. 


Kind regards
Brett Williams 
Property Expert

Istanbul Property - A Safe Haven Emerging Market

The IMF is predicting that the global recovery is going to be held back by the huge floppy eared elephant we call the EU, so where does this leave property investors? The answer has to be Istanbul property.

Did you ever read the book about the family of mice and their stock of cheese? I first read the story back in 2007 when we were last facing some testing times and I like to keep it as a source of inspiration whenever times are tough.

The story is about four mice who live in a maze and they are quite happy living on the cheese they find in in their own little corner, so happy in fact that they begin to get a little lazy and depend heavily on it.
They go to the same place and do the same things every day regular as clockwork.

That is until one day when mother mouse goes to the spot where they always find their cheese only to find that it isn’t there anymore. The cheese had been moved.

Panic stricken she goes back to the family and tells them the bad news. Unfortunately even after looking hard they are unable to find any cheese. The next day the family check again…

Still no cheese and after some days they start to go hungry.

The mouse family driven by hunger eventually decide to get out of their comfort zone and go and try to find what they need in another part of the maze. Fortunately they find it and live happily.

The moral of the tale is that sometimes you need to change direction and find whatever it is you are looking for some place else. Sometimes there is no point in hanging around waiting for things to change.

I thought this story could be used perfectly to describe the dilemma being faced by property investors. Many will be frustrated and disillusioned with trying to find growth in EU property markets.

At the moment it simply isn’t there, so it is time to look beyond the borders and find safe havens that still provide a high return on investment like Istanbul.

Istanbul property prices have increased by 11.87% between August 2011 and August 2012 with smaller properties 51-75 sqm seeing an increase of 13.16% in this period. Housing stocks have also fallen nearly 3% from their peak in March.

Add to this an economy that is actually forecast to grow by more than 3% this year in contrast to a 0.4% contraction of the UK economy and it is easy to see where you can find the best property investment Europe.

If I were a smart mouse, I know where I would be heading with my money.

Are you struggling to find a good property market to invest in? Please leave your comments below:

Kind regards
Kabir M Qureshi 
Managing Director

The Big Funds Continue To Invest In Distressed Florida Property

Warren Buffet thinks single family homes in Florida are cheap and now a major investment firm has decided they are now such good value they are prepared to invest a cool $150 million in 1,200 repossessed and foreclosed property in South Florida.

As I have been telling for months on this blog, Florida property is extremely attractive to investors right now. A combination of high rental yields, heavily discounted prices and a market that finally seems to be following a sustainable path towards recovery is what has attracted the attention of many of the big investors in the USA

The group of Mexican partners at Vulcan group are pretty clear about why they want to invest in South Florida homes. Their CEO Inaki Negrete said in a press release, “We’re buying properties once valued at $200,000 or more for $75,000 and making them available within six weeks for a reasonable $1,500-a-month rent.”

Buffett one of the world’s greatest investors saw the potential we have been telling you about right back at the beginning of the year and this latest investment only reinforces the idea that Florida property is an extremely good long term bet – certainly in contrast to most property markets in Europe at the moment.

Negrete added; “The residential home market in South Florida is definitely on the rise” and the fund is so optimistic about their investment that they expect to liquidate it in 2017, with a 100 percent increase in the values of the properties in its portfolio, plus an annual rental cap rate above 14 percent.”

For most smaller investors it may not be possible to invest on the scale of the large investment funds, however I think this latest move by Vulcan should alert investors that time is running out when it comes to some of the larger gains as property values steadily increase.

Only last month, a Reuters poll forecast that house prices would rise 2.5 percent next in Florida next year, up from 1.8 percent on their July poll. We also learned in August that month, that the average price of a Miami Condo rose 9.1% to $404,927 from $371,205 a year earlier.

On top of this, average rents are climbing 4.4% annually according to the latest data.

It is not often that we see rising rents and prices happening in one state, yet this is what is happening now as a result of tight lending conditions and the influx of foreign cash buyers from Canada and Brazil as well as the big fund managers.

Is it time to invest in Florida property? You bet it is. Please leave your comments below:

Kind Regards
Brett Williams
Property Expert

Why More Arabs Are Investing In Turkish Property

An old property investor friend of mine said to me the other day, “Turkey is pretty interesting at the moment isnt it.” I told him that is a bit of an understatement.

Like many other UK investors, this particular investor is not actively looking to buy abroad at the moment, however European investors are not the main target for Turkish developers, it is the growing influx of investors they are welcoming from the Gulf.

It may surprise you to hear that the Middle East accounts for just 10 per cent of foreign direct investment in Turkey each year. This may already be about to change as Turkey seeks closer ties with its Middle Eastern neighbours.

There are some obvious economic benefits for Turkey in being nestled between Europe and Asia. If one side slows down it can always rely on the other to boost trade. Turkey’s economy continues to grow even though most European countries have gone into reverse and Turkey’s remarkable economic performance in recent years is no accident.

As a result, investors from the Gulf states are increasingly eyeing Turkish real estate as a good long term bet. It has been well documented that Istanbul has seen increasing interest from investors from the UAE, Saudi Arabia, Kuwait and Yemen – all of whom can invest in Turkish property following the reciprocity law change this year.

The country is actively encouraging more investment from its near neighbours and their arrival has been part of the reason why the Turkish property boom has managed to sustain itself to the point where average prices have already risen over 10% since January 2012.

The new Turkish property law only came into effect in May and already the FT reported this month that Agaoglu, a construction group developing the site in Istanbul has received $400m from Gulf investors before it was even launched.

The development in the centre of Istanbul’s business district will include 5,000 apartments in what is claimed to be the biggest real estate project in the Turkey’s history at nearly £1.5bn.

For both investors from Arab states and Turkey itself, the benefits of closer ties means that, on the one hand, Gulf investors can feel confident to invest in property in cities such as Istanbul at prices that are still well below those to be found in Western Europe. While on the other Turkey’s property developers get to tap into the obvious wealth that is accumulating from the trade in energy.

People have been calling Istanbul the “new London” for most of the past 12 months and it is likely that many Middle Eastern investors will find Istanbul a more attractive proposition. Turkey is much closer to home and so is the culture.

So when it comes to catching the next wave of growth in Turkey, investors will need to act fast to beat the influx of investors who will inevitably find Istanbul property – as my friend would say – ‘pretty interesting.’

Do you find Istanbul property interesting? Please leave your comments below:


Kind Regards
Angelina GoreProperty Expert

Escape Eurozone Uncertainty In This High Growth Market

I flew into Istanbul this week and it was nice to feel the heat again after a disappointing summer in the UK. I soon discovered that the weather is not the only thing that is hot about Istanbul at the moment.

One of the best things about investing in property is that no matter what is happening in one part of the world, you can always rely on the fact that there will be somewhere where you can enjoy a different season.

In Turkey at the moment it is hot, so we can see very clearly that when it comes to the investment cycle, cities like Istanbul are still enjoying their summer while much of the EU is still stuck in the winter.

Dare we say that the Istanbul property market is booming at the moment? We don’t hear the word boom so much these days as it suggests a bubble is forming, yet I didn’t get that impression from my trip to Istanbul.

Yes it is true that you can see a frenzy of building activity as developers try to keep up with exceptional demand. However a great deal of this new demand has come as a result of the country opening its doors to Gulf investors by easing restrictions on investment. There is no sign yet that their appetite for Turkish property is satisfied, in fact it looks like they are only just on their starters.

It is estimated that property sales to foreign investors could top $10 billion in Turkey in the medium term alone.

Many of the developers we see building new apartments in Istanbul are no doubt encouraged by the most recent Knight Frank Global House Price Index which put Turkey property prices as the third fastest growing in the world this year.

They were beaten only by Brazil which is undergoing its own economic miracle and Austria which has also seen some surprising surges in property prices. Where Turkey is concerned however, you not only have a property market supported by a growing economy, you also have low prices in comparison to EU countries.

The average asking price for a luxury apartment in Istanbul for example has more than doubled in 7 years from £1,244 to £2,800. Yet this still compares well to prices in EU cities with prices still only a fifth of those you will see in London or Hong Kong.

So while property markets in the Europe continue to be held back by a lack of available finance, shrinking job markets and low consumer confidence it is good to know that I can still escape to Istanbul for a decent summer.

Are you seeing any positive moves in property prices elsewhere in the world? Please leave your comments below.

Kind Regards
Kabir M Qureshi
Managing Director

Is Now A Good Time To Invest In Spanish Property?

Is Now A Good Time To Invest In Spanish Property?

According to the latest statistics September’s fall in Spanish property prices was similar to the one seen in August (Source: IMIE General Index). QB Group.eu highlight that this represents a fall of 32.9% since December 2007.

However despite this latest gloomy news, Don Stevens, Managing Director of
QB GROUP.eu commented, “I would like to allay some of those fears about investing in Spanish property and say that now is quite possibly the best time to take a leap and invest, while others who are less brave are just happy to watch from the sidelines.

Now this is not to say that I am expecting a sudden increase in Spanish property prices and a reversal of the destructive declines in value we have seen since 2007. It just isn’t going to happen in the short term.

In the long term however, investing at today’s prices means that investors are likely to see the value of their investment grow when the market recovers and they can also benefit from 100% finance and other incentives put forward by developers to tempt buyers.”

According to QB Group.eu , if investors are considering Spain at the moment, they might be wondering if this market has further to fall. There are of course no guarantees that there will not be further falls through the autumn and winter months, however as soon as the oversupply of property has been absorbed it is a safe bet that stability will return.

Ratings agency Standard and Poors have just dealt Spain another heavy blow by downgrading its bonds by another two notches to BBB- which is just above a junk-debt ratings.

Stevens added, “The property market in Spain is literally on its knees. Sellers are willing to accept the cheeky offers they would not have even considered back in the boom years. This is the case even in popular resorts like Marbella where developers are offering properties at 70% below launch prices with 100% finance.

This makes Spanish property less of a risk than it has ever been. Investors can use very little of their own money and benefit from falling prices and the falling Euro. Even if the Euro plummets or the worst happens and Spain leaves the Euro, (and this is unlikely) the value of mortgage debt will also be reduced.

Overseas mortgage specialist, Conti saw a 33% rise in enquiries from people looking to invest in a home abroad in September, with Spain still featuring in the list of hot spots. According to
QB Group.eu, this goes some way to confirming that there are plenty of people who are still willing to take a leap and risk investing in Spanish property.

Notes to the editor:

QB Group.eu is a leading property investment company that specialises in finding positive cash flow investment properties worldwide. Their aim is to provide their clients with properties that offer the unique combination of strong growth returns and cash flow positive income.

Investing in positive cash flow property significantly reduces the risk because the property will pay for itself regardless of market conditions, employment status or other financial commitments.

QB Group.eu provides complete support before, during and after a sale, including finding tenants, financial assistance, viewing trips and currency services. Colordarcy are proud members of the ‘Association of International Property Professionals’ (AIPP), and abide by its code of conduct, one established to protect the buyer, by ensuring members follow professional guidelines and procedures.

QB Group.eu (QBinvest.co.uk) investment property portfolio includes some of the best properties for sale in Brazil, Florida, Turkey and the United Kingdom.

For more information, supporting pictures or logo artwork, please contact:

Brett Williams
PR Manager
Tel: +44 (0) 8454 636 856
Email: info@qbinvest.co.uk
Web: http://www.qbinvest.co.uk/

Property Hotspots: Cashing In On Festival and Event Rentals

Our series on finding property hotspots has explored a variety of different ways in which an area can become ‘hot’ and a key attractor of tenants, such as being located near major transport links, large employers or universities. Here’s a new idea to consider – the benefits of cashing in on owning property near festival or event sites.

Many people think of the festival season as kicking off in the summer, when large popular music festivals, such as Glastonbury or Reading, take place. But there are actually a large number of festivals and annual events taking place throughout the calendar year, spanning interests such as literature, music, art, gardening, racing and sailing, in many areas of the UK. Think Cheltenham Festival, Edinburgh International Festival, Goodwood, Chelsea Flower Show, Wimbledon, The Proms, Isle of Wight Festival or Henley Regatta.

Accommodation near each of the venues, especially the large events, is often in demand in the run-up to the events, when organisers are setting up, to during the festivals, when stall holders, attendees and the media are at the events and need somewhere to stay for short or long periods of time. With many of the events only running for a short period, it may seem unlikely that you can make much money from renting property, but actually there are benefits to be had.

In prime locations, the cost of renting a property for a week is substantial. A week of a house rental to coincide with a major music festival can command prices of £5,000, £6,000 or more, depending on the size and exact location. The closer to the venues, the better, but even those close to good direct transport links can be valuable too.

If you have holiday investment rental properties and are located near a festival then you may already be cashing in on the benefits of your location. For those looking to invest in new properties, areas around such events are well worth considering, if the figures add up for you.
To discover whether any of your properties could be festival hotspots, or areas which you could consider buying in, here are some useful links to explore:

Puerto Rico Home Rentals

Puerto Rico Home Rentals

There are many great reasons to consider Puerto Rico home rentals, from the beautiful exotic location, to the amazing prices, it is a tropical paradise like no other. If you have been thinking of moving to Puerto Rico, you probably already know how difficult it can be to purchase a home there, while living in another country. House rental in Puerto Rico allows you to move to your dream location quickly, without the complicated process of trying to find the perfect house to purchase.


While it may take many trips back and forth to Puerto Rico to find and purchase a house, it is entirely possible to find a great house to rent within a single weekend trip. This drastically cuts back on both the costs and the time involved in the moving process. That means you could literally be living in your new tropical dream home in as little as a few weeks!


In addition to being easier to move into, Puerto Rico home rentals offer all of the fabulous benefits of an island retreat, right in your own home. The lush and exotic landscape brings the magic of the tropics right to your front door. In addition, many house rentals in Puerto Rico offer immaculate architecture in a wide range of styles, such as Spanish colonial, neo-classical, and baroque. In fact, Puerto Rico is known for having some of the most impressive and interesting architecture in all of the Caribbean.


There are many rent to own properties as well, which means that your house rental in Puerto Rico could actually be a great long-term investment. This is also a great option if you do not have the good credit you need to purchase a house. By renting to own, you can rebuild your credit, while putting money down on the actual house you want to buy.


Renting can definitely be a great option, however living in an apartment complex is not ideal for many people. House rental in Puerto Rico gives you a chance to rent or lease, while still living in a house of your own, offering the privacy and space that many people desire. One of the best parts, is that the property manager will still take care of all the maintenance responsibilities, so you can rest easy while someone else takes care of the property!


If you are interested in living in Puerto Rico, but you do not have the best credit, or you simply cannot afford the lengthy home buying process, you should seriously consider Puerto Rico home rentals. You get all of the benefits of having your own home, without a lot of the troubles associated with buying a house. And just think, you could be living in your new tropical paradise in just a few weeks!

Land For Sale In Puerto Rico

Land For Sale In Puerto Rico

Nearly everyone has fantasized about living in a beautiful tropical location at least once in their lives, but most people don't realize it is actually possible. In general, tropical destinations are over populated and over priced, not to mention buying property abroad can be risky business. Puerto Rico offers all the luxurious benefits with none of the shortcomings: land for sale in Puerto Rico is far more reasonable than other exotic islands, plus you are protected by strict real estate transaction laws to keep your money safe. Buy land for sale in Puerto Rico also gives you a lot more options – you could build a home to live in, a commercial property to earn you money, or even just have a wonderful place to go camping on vacation.


The real estate industry is booming, yet prices are still very affordable. There are many different types of land for sale in Puerto Rico, from beaches to mountains, lakes to rain forests – it has home to many exotic plants and wildlife. With average temperatures around 82 degrees Fahrenheit, and very little variance from one season to the next, it is a very comfortable place to live.


One of the most important things to consider when purchasing any property, is resale value. Right now, the prices on land for sale in Puerto Rico are very low, yet the economy is now booming and rising quickly. This means you have the chance to purchase tropical lush property for far less than it is worth, making it an amazing investment opportunity. And you can rest easy knowing your money is safe, since Puerto Rico is an unincorporated territory of the United States, and has similarly strict real estate transaction laws and property rights.


Since English is taught as a second language in public school in Puerto Rico, is is much easier to communicate with a real estate broker than it would be in other parts of the world. This is a huge advantage to buying land for sale in Puerto Rico – real estate transactions can be quite complicated, and having a communication barrier could make it nearly impossible. Because of this, it may be wise to meet with a few brokers to see which one you will be able to speak with the easiest.


All in all, purchasing land for sale in Puerto Rico can be an amazing opportunity. For anyone looking for a new place to call home, somewhere to start a new business or some lucrative real estate to invest in, Puerto Rico is full of incredible possibilities. Right now is the perfect time to invest in one of the greatest locations available on the planet, and anyone in real estate will tell you, location is everything!

Puerto Rico Commercial Real Estate

Puerto Rico Commercial Real Estate

Tourism is a multi-billion dollar industry, with a large majority of that money going to the tropical locations of the world. This is an amazing opportunity for anyone looking to start a new business or purchase an existing profitable business. However, since most tropical locations have limited real estate transaction laws and property rights, it can be a risky endeavor. That is one of the many great reasons to consider Puerto Rico commercial real estate – it is an unincorporated U.S. Territory, so your transactions and property will be completely protected by very strict laws. This means you get all the benefits of a tropical tourist location, without many of the financial risks!


There are many different types of Puerto Rico commercial real estate available, from office buildings and restaurants to resorts and amusements. This means that you have your choice of many different lucrative investment opportunities, so you can find one that not only has a lot of profit potential, but is actually of personal interest to you. Right now, property prices are very low, yet the economy is steadily rising, which makes this the perfect time to buy property in Puerto Rico. You can get in now while the price is still low, and cash in on the millions of tourists visiting the island every year.


Before you start looking for Puerto Rico commercial real estate opportunities, you need to ask yourself a few things: What is your budget? What type of business do you want to run? How soon would you like to begin? Do you want to start your own business or buy one that's already profitable? When you are able to answer all of these questions, you are ready to speak with a qualified local real estate broker in Puerto Rico. Having a good idea about what you are looking for will help them find the perfect commercial property for you.


While the tourism industry brings in roughly two billion dollars a year in Puerto Rico, it is by no means the only profitable sector. In recent years, the petrochemical, pharmaceuticals, and technology industries have been growing at a dramatic rate, and have helped Puerto Rico become classified as a “High Income Country” by the World Bank. This means there is a lot more money being spent regularly by locals than in most other tropical tourist locations. In addition, many industries receive generous tax incentives from the United States, making business even more profitable.


If you are looking to start a profitable business in a beautiful tropical location while still being protected by strict real estate transaction laws, then you should really look into Puerto Rico commercial real estate. With a booming tourism industry, a profitable technology sector and incredible property prices, it is truly an island of opportunity.

Homes For Sale In Puerto Rico

Homes For Sale In Puerto Rico

Are you looking for a big change in your life? Are you sick and tired of being surrounded by a concrete jungle, cars and smog? Are you sick of paying tons of money every month to live in a small apartment or house? Perhaps it is time for you to look at some homes for sale in Puerto Rico - the Island of Enchantment is a beautiful and peaceful place to call home.


Since Puerto Rico is an unincorporated territory of the United States, American citizens are allowed to travel there without obtaining a passport or visa. In addition, English is taught as a second language in public schools, so most citizens of Puerto Rico are able to speak English quite well. However, when making important business decisions, such as buying homes for sale in Puerto Rico, you should make sure you use a local real-estate broker who is very fluent in English to avoid any miscommunication.


There are many different types of homes for sale in Puerto Rico, from small efficient one bedroom homes all the way up to massive multi-million dollar luxury mansions overlooking the ocean. Due to the tropical atmosphere, lush exotic landscaping surrounds most of the homes for sale in Puerto Rico, helping to bring that luxurious vacation feel right to your home, year round. Best of all, the prices are extremely reasonable, allowing buyers to get a lot more home for their dollar then they could in other parts of the world. Since Puerto Rico is still a U.S. Territory, there are many laws and regulations to protect your real estate transactions as well as your property rights, which is very important, especially when buying a home that you must relocate to.


Another great option, is to look at Puerto Rico condos for sale. When living in a condo, you are not responsible for maintaining the premises – a staff of trained professionals handles all the usual chores, such as landscaping and trash removal. This way, you can kick back, relax, and enjoy your free time, while someone else takes care of the boring and time-consuming chores. In addition, there are many Puerto Rico condos for sale with immaculate landscaping, swimming pools, jacuzzis and more, making condo life seem like a vacation that never ends. Basically, you get all the benefits of living in a luxury apartment, but all the investment benefits of owning your own property.


Whether you look at homes for sale in Puerto Rico, or decide to check out the Puerto Rico condos for sale, you are sure to find some amazing investment opportunities in one of the most beautiful places on Earth. Property prices are at an all-time low, but the economy is stable and on the rise. That makes right now the perfect time to invest in property in Puerto Rico for any reason, be it for financial gain, a new family home, or just an amazing vacation spot to visit anytime you want.

Find Puerto Rico Real Estate

Find Puerto Rico Real Estate

Puerto Rico real estate has become a very lucrative market in the past few years. It is the perfect place for anyone who wants to live in a tropical location, while still having their real estate transaction and property rights protected. Puerto Rico is now considered a “non-incorporated territory” of the United States, and has very similar real estate laws, making it an excellent investment opportunity.


Real estate prices have dropped some in the past few years, but have stabilized making this the perfect time to invest in real estate in Puerto Rico. In addition to having your real estate transactions be protected, there are some local incentives and tax credits available to motivate new buyers, especially in the tourism sector. Since there are very strict laws and regulations, it is wise to hire a local real estate broker. If you do not speak Spanish, make sure you find one that can speak English fluently. While many residents speak English, it generally is not adequate to handle serious business transactions, such as property sales.


Puerto Rico is a place like no other, and has been nicknamed “Isla del Encanto,” which means “The Island of Enchantment,” in English. There are many fun and exciting activities available, such as rock climbing, snorkeling, diving, mountain biking, kayaking, hang gliding and more, ensuring there is never a dull moment. Buying real estate in Puerto Rico is like sending yourself on vacation, for the rest of your life!


Real estate in Puerto Rico is not limited to just homes – in fact there are many lucrative commercial opportunities available as well. In the past few decades, there has been a big shift towards industrial production in Puerto Rico, and there are many factories and industrial spaces available – many of which are active, profitable companies. In addition, there are a lot of commercial properties and office spaces for sale for just a fraction of what they would cost in the U.S. Since English is taught as a second language in schools in Puerto Rico, managing a business here is possible, even if you cannot speak Spanish fluently.


Whether you are looking to start a new business, take control of an existing one, or you just want to live in a tropical paradise, do yourself a favor and look at some real estate in Puerto Rico. With unbelievably reasonable prices and a beautiful location, Puerto Rico real estate is an amazing opportunity for anyone looking for a change.