Ethical investment opportunity provides ‘win-win’ for UK care homes and investors alike

Ethical investment opportunity provides ‘win-win’ for UK care homes and investors alike

United Kingdom
  • Over 65’s population across England set to grow over 40% in the next 17 years (AgeUK)
  • Sunderland’s over 65’s population to rise over 30% by 2025 (sunderland.gov.uk)
  • Care home investments are ‘win-win’ opportunity to invest in the future of UK care (Properties of the World)

Life expectancy in the UK is on the rise; Brits are getting older and living longer. According to the charity AgeUK, 11.4 million people are aged 65 or more and over the next seventeen years, this figure is projected to jump close to 16 million, an increase of over 40%.

With an ever ageing population comes an ever growing demand for quality housing and care provision. The percentage of people in England over the age of 85 increased by 289,000 between 2005 and 2014, a growth of almost 30% that is expected to accelerate further over the next 20 years.

In order to meet the inevitable need for increased health and care services in the coming years, the UK government committed in 2015 to transferring £3.8 billion from the NHS for joint NHS and local council decision-making about the funding of health and care services.

Despite this move, social care funding and supply within the UK still remains under pressure creating a ‘win-win’ opportunity for the care industry as it seeks external private investment.

Jean Liggett, CEO of visionary property investment consultancy, Properties of the World comments,

“With such pressure on care funding, care home owners and operators are no longer able to rely solely on antiquated models of supply and finance. Private investment in the care industry will help to maintain the supply of care to those who need it most. Take Wagon’s Way care home in the North East of England, this opportunity to purchase rooms, open to individuals, delivers an ethical ROI, based upon a sustainable model that takes into account the needs of both residents and investors.”

Wagon’s Way is located in the historic town of Washington, Sunderland. According to Sunderland council’s Sunderland Strategy, the number of people in the region aged over 65 in 2005 was 45,800. This number is expected to rise by over 30% to 59,000 by 2025.

Sunderland’s ageing population has sparked renewed focus on meeting the needs of older people throughout the city via projects such as Wagon’s Way. The 58-bed facility will soon be transformed into a high quality nursing and dementia-specific care home. Providing specialist nursing and palliative care, Wagon’s Way will ensure high occupancy and long-term success in a sector that already generates £14.5bn a year for the UK economy.

Just five minutes’ walk from the picturesque River Tyne, Wagon’s Way is ideally situated. With a park and St Peter’s Church just a stone’s throw away, residents will feel safe and secure in this peaceful location.

For £53,820, investors in this ethical purchase opportunity can look forward to fixed rate rental income of 8% per annum for up to 25 years and an ROI of up to 225% compared with high street bank savings generating returns of up to only 1%.

For more information, please visit http://propertiesoftheworld.co.uk/, email info@propertiesoftheworld.co.uk or call +44 (0)20 7624 5555

Certainty in an uncertain world – post-Brexit investors turn to commercial property and fixed returns

Certainty in an uncertain world – post-Brexit investors turn to commercial property and fixed returns

United Kingdom
  • 20% increase in commercial property enquiries since EU referendum (Properties of the World)
  • Residential buy-to-let yields averaging just 5% (Zoopla)
  • Commercial property offering everything from 10% returns (Caer Rhun Hall) to fixed returns for up to 25 years (Wagons Way)

Visionary property investment consultancy, Properties of the World, has reported a marked increase in enquiries regarding commercial property investments, following the UK’s decision to leave the EU.

Investors are searching for certainty in a newly uncertain world and for many the answers lie in the fixed rate returns offered by UK commercial investment opportunities such as care homes and student accommodation schemes.

Jean Liggett, Founder and Managing Director of Properties of the World, explains,

“In simple terms, fixed returns mean certainty, and that is precisely what an increasing number of investors are looking for right now. We’ve received a 20% uptick in enquiries for commercial property investments since the UK’s Brexit vote.

“Buyers like the fact that hotels, student accommodation and care homes offer fixed returns over five or more years. The fact that the return is considerably higher than residential buy-to-lets further adds to the appeal. This is a proven market experiencing increasingly strong demand.”

Investors in Wagons Way care home in Washington, North East England, for example, can look forward to fixed rate rental income of 8% per annum for up to 25 years. With a purchase price of £58,500, the 58 bed facility offers ROI of up to 225%. With bank savings generating returns of up to 1%, it’s easy to see why many people are choosing to use their savings to buy commercial property, which offers far greater, fixed rate returns.

Fixed rate returns provide peace of mind and mitigate risk. The world as we know it may be experiencing major upheaval, but that only serves to make fixed rate investments more appealing.

Properties of the World’s Jean Liggett continues,

“With fixed rate commercial investments, investors know that they will get an 8% return (for example) year in year out. With residential buy-to-lets the returns aren’t fixed and many buyers are afraid that they could end up out of pocket, particularly with so many unknown economic and political factors coming in to play over the next two years as the UK disentangles itself from the EU.”

Jean cites Dye Works in Bradford as an example. The contemporary student accommodation scheme offers a three year fixed annual income return of 8%, with a 6% coupon during the construction period. A limited number of single rooms are available for investment from £65,000.

The other attraction of commercial property investment is the fact that it is fully managed and doesn’t incur extra costs. Buy-to-let landlords run the risk of tenants damaging their properties, void periods and repair bills when something goes wrong, as well as having to stump up for the cost of insurance. A hotel investment mitigates all of these risks, ensuring that the buyer is not suddenly out of pocket due to redecoration costs or a lack of tenants.

At Caer Rhun Hall in North Wales, investors can enjoy sitting back and making money while having nothing to do with the management of the hotel. Their £50,000 investment generates 10% returns per annum, far surpassing average buy-to-let yields, which stood at an average of 5% across the UK for the period from 01/01/2015 to 18/02/2016, according to Zoopla. Plus, investors in Caer Rhun Hall can enjoy the added bonus of two weeks’ usage of their hotel room every year.

Properties of the World’s Jean Liggett concludes,

“The uncertainty caused by the Brexit referendum isn’t going to go away anytime soon, so it follows that commercial property investment is going to enjoy a sustained surge over the next couple of years as buyers seek out certainty in an uncertain time”

For further details visit www.propertiesoftheworld.co.uk, email info@propertiesoftheworld.co.uk or call the team on +44 (0)20 7624 5555.

UK tourism sector already reaping the benefits of Brexit

UK tourism sector already reaping the benefits of Brexit

United Kingdom
  • Sterling could drop as low as $1.15 (HSBC)
  • US searches for UK holidays up 54% (Kayak)
  • Overnight domestic trips hit record levels, up 23% in 1 year (VisitEngland)
  • Hotel investments set to benefit from Brexit (Properties of the World)

The UK hospitality sector is looking forward to a bumper summer, as sterling’s drop in value following the Brexit vote is set to create a two-fold increase in tourism for UK destinations.

The pound plummeted after Britain’s ‘leave’ vote, dropping to a 30-year low of US$1.3236. Nor is that the lowest it’s likely to go: Standard Bank Group Ltd has predicted we’ve only seen half the decline that we’re likely to see this year. Prior to the referendum, HSBC projected a drop to as little as $1.15.

While that might not be great news in many respects, it’s a fantastic situation for the UK’s hospitality industry. UK tourists looking to avoid overseas holidays this year, due to their increased cost, are expected to opt for domestic travel for their summer breaks. Meanwhile, visitors are predicted to pour in from overseas, as holidays in the UK just got a whole lot cheaper for those paying in other currencies.

Since the Brexit decision, overseas travel sites have reported a significant jump in enquiries for UK holidays. Kayak noted a 54% increase in US searches for fares to Britain, Travelzoo reported a 35% rise and young people’s travel booking site StudentUniverse reported that flights had doubled from a year ago. Meanwhile Ctrip.com International reported that Chinese searches for UK holidays had “skyrocketed” since the vote, while British Airways owners IAG SA has stated that it is expecting the weaker pound to boost tourist flows to the UK.

Edouard Meylan, chief executive officer of Swiss watchmaker H. Moser & Cie, comments,

“I wouldn’t be surprised to see Chinese and Middle Eastern tourists flocking to the UK as their purchasing value has increased. People are ready to travel to get a 5 to 10 to 20 percent discount.”

The expected boom for the UK tourism industry follows a record-breaking first quarter to 2016. VisitEngland reported the amount spent on overnight domestic holiday trips in England during Q1 2016 rose to a peak of £1.8 billion, up 23% compared with Q1 2015. Domestic overnight holiday trip numbers (as reported in the Great British Tourism Survey) also hit record levels, at 7.3 million visits, up 10% compared to a year earlier. Meanwhile VisitBritain has reported a 46% surge in Chinese visitor numbers during 2015, which is excellent news for the UK’s luxury goods market, as well as its hospitality sector.

Colliers International concurs, observing that the hospitality industry enjoyed a 5% rise in visitor numbers to the UK in the year to April 2016.

Being outside of the EU may also bring other benefits. Kurt Janson, director of the Tourism Alliance, has observed that the UK will now have the opportunity to shape its tourism industry to be more competitive than its European counterparts, as it will be free up to address significant issues like the Package Travel Directive and the Tour Operators Margin Scheme in new ways.

The expected rise in domestic tourism, with more families opting for staycations due to the weaker pound, should also give the industry a boost. Nick Varney, chairman of the British Hospitality Association, concludes,

“I think that a weaker currency, particularly the pound versus the euro, is good news for tourism in this country.”

Nor is it just tourism that will benefit. Jean Liggett, Managing Director of visionary property investment consultancy, Properties of the World, comments,

“We’re likely to see a noticeable rise in investment from overseas when it comes to hotel and resort investments in the UK. Not only is demand for UK holidays expected to rise this summer, but for buyers abroad, investment in the UK is now cheaper thanks to sterling’s fall. UK investors are also likely to flock to the hotel industry, as it is set to offer more stability over the coming months than things like commodities, which are expected to endure some pretty turbulent times as the Brexit process takes shape.”

Caer Rhun Hall in the beautiful North Wales countryside is the perfect example. Its sumptuous rooms are available from £50,000, with returns of 10% per annum, a 125% assured buy-back option and full management. Investors can also enjoy two weeks’ usage per year at no cost, which is ideal in light of the current trend for UK-based staycations.

Leaving the EU is likely to be a difficult process in many respects for the UK, but as far as the tourism sector is concerned, business is booming and the future is bright.

For further details visit www.propertiesoftheworld.co.uk, email info@propertiesoftheworld.co.uk or call the team on +44 (0)20 7624 5555.

Holidaymakers and investors both spellbound by the beauty of North Wales

Holidaymakers and investors both spellbound by the beauty of North Wales

United Kingdom
  • Wales one of 2016’s Top 10 Countries (Rough Guide)
  • Visitor numbers set to boom in 2017 thanks to Year of Legends (Welsh Government)
  • Hotel room investment in stunning countryside retreat available from £50k (Properties of the World)

When it comes to enjoying the best that outdoor Great British life has to offer, Wales is undoubtedly the place to be. With soaring mountains, stunning coastline and a whole load of adventure activities to set pulses racing, Wales is the ideal holiday destination for visitors from the UK and overseas.

Jean Liggett, Managing Director of visionary property investment consultancy, Properties of the World, comments:

“Wales offers the perfect blend of natural, unspoilt countryside, old world charm and super contemporary adventure. Whether you’re travelling alone, with young children or with easily bored teenagers, Wales makes a great destination that will charm and entertain all those who visit.”

Liggett knows Wales well through her company, which is offering hotel room investments at the stunning Caer Rhun Hall. The hotel is located in the heart of the Conwy Valley, set in 20 acres of breathtaking grounds, with beautiful countryside stretching for miles around. Built by General Hugh Gough in 1892, the three story mansion is a traditional countryside delight, featuring crow-stepped gables over the bays, a slate roof with heavily ornamented roofline, towering chimneys and thin columnar finials topped with stone balls.

The market town of Conwy is just 7km away, with its pretty beach, majestic castle, ancient walls with 22 towers and the smallest house in Great Britain offering a delightful range of sights and family activities. Further afield, the surrounding Llandudno countryside is awash with everything from classic seaside pursuits at Blue Flag beaches (think piers, Punch and Judy and small tots balanced on donkeys) to art exhibitions and theatres. The whole of the Snowdonia National Park is also easily accessible, offering some of the most picturesque scenery in Great Britain, as well as the opportunity to scale one of the UK’s most famous mountains.

Such a wealth of activities makes hotel investment in northern Wales an attractive prospect. Investment at Caer Rhun Hall is from £50,000, with a range of luxurious rooms and villas to choose from. Investors can benefit from a hands-off, fully managed investment with 10% returns per annum, 125% assured buy-back option and even two weeks’ personal usage per year.

Conwy and the surrounding countryside, where Caer Rhun Hall is located, will be one of the regions to benefit from the projected boost in tourism that Wales is set to enjoy in 2017, which has been designated the ‘Year of Legends’ by the Welsh Government. Deputy Minister for Culture Sport and Tourism, Ken Skates, explains:

“The Year of Legends 2017 presents an opportunity to build on the truly distinctive identity Wales has on the world stage, by allowing us to capitalise on Wales’s rich culture and heritage to stand-apart from our competitors. In doing so, we want to reinforce positive perceptions of our country, and position Wales as a high-quality, relevant and contemporary 21st century destination.”

Wales is already enjoying a booming reputation as an international tourism destination. The country was included in the Rough Guide’s Top 10 Countries 2016, which promised that, “culture vultures, foodies, festival junkies, adventurers, hikers and extreme sports enthusiasts will be spellbound here.” Now, with investments like Caer Rhun Hall offering a low entry point and excellent returns, investors in Wales can be spellbound too!

For further details visit www.propertiesoftheworld.co.uk, email info@propertiesoftheworld.co.uk or call the team on +44 (0)20 7624 5555.

Why are investors checking out of UK buy-to-let and checking in to hotel investment?

Why are investors checking out of UK buy-to-let and checking in to hotel investment?

United Kingdom
  • Hotel investment up by 50% globally in 2015 (JLL)
  • UK hotel investment at 9 year high of £8.1 billion (Savills)
  • Low price point, 10% returns, no stamp duty and no hassle are prime attractions (Properties of the World)

The 3% stamp duty increase that came into effect in April 2016 has made many investors more cautious about the potential of buy-to-let property in the UK. Instead, many have been turning to hotel investment, as Jean Liggett, Managing Director of visionary property investment consultancy, Properties of the World, explains:

“Hotel investment offers a number of advantages over residential buy-to-let. Hotel rooms tend to have a lower entry point, offer higher returns and don’t have any of the management hassle that is associated with becoming a landlord. While there’s been a lot of talk about buy-to-let investment in the press, the hotel investment sector has been quietly booming. It’s the place to be for those looking for healthy returns without having to worry about extra stamp duty fees.”

The Jones Lang Lasalle (JLL) Hotel Investment Outlook 2016 confirms the size of that boom. Hotel deal volumes increased by a staggering 50% in 2015, to a global value of $85 billion. There were a number of ‘trophy sales’ during the year, with a record proportion of single asset transactions and cross-border capital. Altogether, just 30 cities around the world account for roughly 66% of global value when it comes to the hotel market.

2015 was also an excellent year for hotel investment within the UK. Savills reported a nine year high of £8.1 billion worth of transaction volumes, up 31.6% over 2014’s £6.1 billion.

With fewer trophy sales expected, 2016 should be a more measured year for the hotel investment sector, with secondary markets grabbing the headlines and providing the most fertile investment market over the course of the year, according to JLL.

Certainly in the UK the figures stack up favorably when compared with buy-to-let investment. The country’s highest yielding market (Manchester, according to HSBC), offers returns of 7.98% gross. However, hotel investments such as Caer Rhun Hall in North Wales offer returns of 10% per annum.

The low price point is also an attraction. Luxurious hotel rooms in the stunning, Grade II listed, Elizabethan-style Caer Rhun redevelopment are available from £50,000. Investors would be hard pressed indeed to find a decent buy-to-let property in the UK for that amount!

Steady returns and no worries about maintenance make hotel room investments even more attractive to many. Properties of the World’s Jean Liggett continues:

“The lack of maintenance requirements is a big plus for many investors. As a buy-to-let landlord, if something breaks in your rental property it’s going to impact on your time and your finances until it’s fixed. With a hotel investment, the management company will take care of such issues plus more. It’s a much more hands-off investment. Hotel investments can also offer additional lifestyle benefits with several including free usage each year – just one of the many advantages over buy-to-let.”

Caer Rhun Hall does just that: investors get to use their room for two weeks every year, free of charge, enjoying the delightful, walled Welsh market town of Conwy, with its stunning countryside surroundings and of course, the truly iconic Conwy castle.

2016 looks to be a promising year for hotel investment in Wales. The most recent tourism figures (for the year of 2014) show that the country received 10 million overnight visitors from Great Britain during the year. Wales attracted an additional 932,000 international visitors during the same period bringing in £368 million. Visitors came from around the world, with the greatest concentration from the Republic of Ireland (148,000 visitors), France (111,000), Germany (92,000) and the USA (90,000). Interim 2015 figures indicated growth over the 2014 numbers.

The Welsh government is pushing for further growth each year, with annual campaigns designed to show the breadth of excitement available to those who visit Wales: 2016 has been marketed as the Year of Adventure and 2017, the Year of Legends.

However it’s dressed up, Wales is enjoying significant interest in its tourism offering and it’s an offering that has caught the attention of many would-be and former buy-to-let investors. As Properties of the World’s Jean Liggett concludes,

“At the end of the day, investors vote with their feet, and right now we’re seeing increasing numbers of them walking away from the buy-to-let sector in favour of hotel investment. Hotels generate greater returns per square meter, come with less hassle and don’t present any additional charges like stamp duty or buildings insurance. That’s why investments like Caer Rhun Hall are being snapped up so fast.”

For further details visit www.propertiesoftheworld.co.uk, email info@propertiesoftheworld.co.uk or call the team on +44 (0)20 7624 5555.