It is hard to generalise as there tends to be quite a bit a variation depending on the specific location within the city. However, on average, residential buy-to-let yields range between 5% to 8% in these cities. Higher yields are attainable in these cities (vs. London) as property prices have not inflated as much.
I have a strong interest in real estate and technology, and the intersection between the two (proptech, fintech). I am also passionate about helping companies in this space identify growth opportunities, and unlock value.
I have had a diverse set of experiences in roles relating to public policy, diplomacy, strategy, investing, technology and social impact. Within the Singapore public service, I have advised senior officials and political leaders on a range of economic and geopolitical issues with far-reaching impact.
I have also worked closely with many startups and scaleups, and designed a variety of policy intervention tools (i.e. grant schemes, debt structures, equity schemes) to support them on their growth journeys. This has fostered a deep interest in the early-stage business ecosystem, and how entrepreneurs, venture capitalists, corporations and governments can come together to support innovative ideas and businesses to solve the pressing needs of our time.
I am currently pursuing my MBA at the London Business School to bring together my broad range of skills and experiences, and to develop further as a business leader and individual.
Best posts made by Nadim_kapadia
Latest posts made by Nadim_kapadia
RE: What is the usual cap rate for Manchester, Leeds, and Birmingham?
RE: What is PropTech and how is that changing the investment scene?
Proptech is an acronym for “Property” and “Technology” and as the name suggest, and refers to all the technological innovations occurring within and disrupting the real estate or property sector. Broadly, PropTech can be divided into three key verticals.
a) Smart real estate, which is focused on the operation and management of real estate assets.
b) Shared Economy, which is focused on the use of real estate assets on the occupier market. WeWork and Airbnb are two common examples here.
c) Real Estate Fintech, which is focused on platforms that facilitate the trading or investment of real estate. For investors, this is the part that is pretty interesting and is offering new avenues in the way we can invest and build property portfolios.
There are a vast number of PropTechs which have emerged in the past few years and its hard to cover the wide range of services that they provide. But to provide a feel, let me share two PropTech solutions we have been using in our investments.
The first is a property data aggregator called PropertyData. Data is key to making the smart investment decisions. Property Data helps investors analyse local property markets and research individual properties from your desk. Through their service, you can easily obtain comprehensive data on prices, price/sqft, rental yields, planning, boundaries & footprints and much more. This is especially usually for foreign investors who may not be familiar with the local area.
The second is GetGround, which is a really interesting solution that helps investors purchase property tax efficiently through a limited company, without the hassle and high fees. Through GetGround, investors can seamlessly open a bank account, set up a limited company and manage all their finances in one place. This is again particularly useful foreign investors who often experience obstacles getting the business structure set-up before making purchases. We have recently on-boarded GetGround as our partner at Focus Property Investment (FPI) and look forward to working with them to make the investment journey more seamless.
RE: Which areas do foreigners tend to invest in the United Kingdom?
London has traditionally been the most popular location for foreign investments into real estate, and I believe will continue to be. However, over the past few years, we are observing more foreigners investing outside London, in hotspots such as Birmingham, Manchester and Liverpool. It is worth noting that prices in London have risen significantly over the last 20 years and this has impacted property yields. Moreover, the London property market is competitive and finding attractive deals can be challenging. Thus, for foreign investors hunting deals with strong yield returns, it is worth exploring locations outside London.
RE: Is student accommodation worth investing in the United Kingdom?
The United Kingdom is a popular destination for higher education and has some of the best academic institutions globally. Where there are students and universities, there will naturally be a demand for student accommodation and thus over the years many investors have benefited from student accommodation investments in the UK. In fact, student accommodation has been among the strongest performing real estate asset classes over the past three years, and most indications are that it will continue to stay strong.
However, the Covid-19 pandemic and the shift to virtual classes, has also showed us the potential risks associated with investments in the student accommodation asset class.
As such, we at Focus Property Investments (FPI) always advice our clients to take a balance and diversified perspective, and to consider investing in different real estate asset classes, such as buy-to-let residential, student accommodation, and commercial, to protect against downside risks and achieve a more stable return.