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Article 50 – What You Need to Know

British Prime Minister Theresa May has officially triggered Article 50 which marks the beginning of a two-year negotiation process for the terms of UK’s exit from the EU. The UK will ask for free trade and control of immigration and lawmaking while, for the EU, the focus will be on ensuring that there is no easy ride for the British as it tries to safeguard the stability and commitment of its 27 remaining member states. Here’s a quick snapshot of the process and what to expect:

It won’t be an easy exit

It’s open season for both the UK and EU. According to Irish PM Enda Kenny, negotiations could turn vicious while European Commission President Jean-Claude Juncker has said that the process will be “very, very, very difficult”. Not surprising — after all, this is a divorce from a 44-year ‘marriage’. Theresa May will also need to deal with the added pressure of fresh calls for a second independence referendum in Scotland from First Minister Nicola Sturgeon.

A challenging time frame

The timing of Article 50 was up to Britain but what happens next is up to the EU. Time is crucial as there is 2-year deadline and, realistically, the UK has up to end 2018 to agree terms of the breakup and win the trade deal it wants as the resulting deal would need to obtain the consent of the European and British parliaments. Otherwise, Britain will crash out of the EU without a pact and be subject to higher tariffs (subject to the WTO).

Negotiations might move along slowly because all 27 member states of the EU must first agree a common negotiating line before chief negotiator Michael Barnier can meet his British counterpart David Davis at the table. This alone could take months, particularly with distractions along the way such as the French and German elections in May and September, respectively. If the rest of the EU agrees, the two-year negotiating period can be extended, leaving Britain in the EU for a while longer. Or, the two sides could agree on a transitional period.

What’s on the table

Britain wants to win back control of labour flows and lawmaking, while landing a new free trade pact with the bloc by March 2019. The EU wants the UK to first pay off a £50 billion bill to cover EU staff pensions and other expenses that the UK has agreed to. The UK is likely to question the amount to be paid and the EU will not allow the UK to cherry pick on deals to be negotiated now that it is out of the bloc.

The impact

The overall impact of Brexit on the UK and London and their place in the world, remains to be seen, and there are fears that London’s position as a global financial centre will be affected, among other things. But, we expect the UK to recover and regain its momentum once there is clearer direction. The UK has long been a sovereign global power, even before its membership in the EU and we believe that it will find its footing as it charts its freedom from the EU.

  • The performance of the pound. Following the invocation of Article 50, the pound dropped (albeit not too sharply as most of the impact had been factored into the sterling since the referendum) to RM5.48 but rallied back to RM5.50 as at press time. We believe there will be a rise in the currency as negotiations get under way. These few months could be the the last period during which the pound will sink further before it recovers once official negotiations are underway.
  • Window of investment opportunity. Savvy foreign investors are taking advantage of the favourable exchange rate to invest in the UK. They are seeing the opportunity that Brexit presents, understanding that while there might be uncertainties ahead, UK’s fundamentals are strong enough to ride out the Brexit process.

Housing crisis: residential property in demand

The UK’s housing crisis is a real one, and one that is not going to go away anytime soon. Britain needs some 300,000 houses to be built in a year to address skyrocketing prices and housing demand, yet it has consistently fallen short of the mark. With such high prices, there is now an increasing number of young renters known as Generation Rent who are unable to afford to buy their own homes. The scarcity of houses and the favourable exchange rate combines to form an opportunity for property investors in the UK.

PwC’s research into housing affordability for generation rent shows that buyers may now have to save for 19 years in order to buy their first home (assuming deposit is raised entirely from their own savings without family assistance). In 2000, the same group would have been able to buy after saving for just 6 years, and in 1990 it took only around 2 years.  PwC estimates a generation renter starting to save in 2016 can now buy in 2035. See our article: Britain, A Nation of Renters?

Conclusion

Both the EU and the UK government agree on one thing: that this is unprecedented territory and neither side knows how the talks pan out.

British Prime Minister’s letter triggering Article 50. Image: The Telegraph UK

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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One Wolstenholme Square – FEB 2017

On behalf of the developer, we are pleased to present the latest updates from the construction site of One Wolstenholme Square in Liverpool, UK as at end February 2017. To read and enlarge the update, kindly click on the image below.

Much progress has been made on Block A, with Block B in close pursuit. The developers are now gearing for building of Block C upon completion of steel frames in Block B.

The Epicentre of History & Culture

Imagine being at the centre of a quaint and cultural city bustling with life and steeped in history…Welcome to One Wolstenholme Square, the latest £40 million development in the most desirable postcode in Liverpool.

Located five minutes away from the city’s attractions and top university campuses, One Wolstenholme Square comprises a selection of studio and one-bedroom residential apartments with a panoramic view of the Liverpool skyline and the remarkable World Heritage Waterfront.

Liverpool is one largest economies in the UK, and home to half a million people, some of the UK’s top universities, football clubs (Liverpool FC & Everton FC), a staggering student population of over 53,000 and, of course, The Beatles!

Investment Highlights

  • Prime location, prime rental market right in the city centre
  • 8% nett yield guaranteed for 3 years
  • Demand for housing from more than 53,000 students
  • Projected return of 9% nett after year 3
  • Thriving rental market
  • Rental returns outpace London (source: HSBC)
  • Exit to property market

Project Highlights

  • Fully furnished
  • Fully managed by professional management company
  • Large studio and 1-bedroom apartments
  • Located in the city centre
  • Walking distance to One Liverpool, Albert Dock, Mersey River, convenience stores and F&B outlets.


CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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MILQ Apartments – Q1 2017

On behalf of the Developer, we are pleased to present the latest updates from the construction site of MILQ Apartments in North Melbourne. MILQ is located moments from the Errol Street Activity Centre, providing immediate access to cafes, restaurants and boutiques whilst within walking distance to the CBD. Kindly click on the image below to enlarge.

MILQ lies within the much desired University High School neighbourhood precinct. The University of Melbourne, which is typically ranked among the best universities in the world, is a short walk away to the east. Meanwhile, the green expanse of Royal Park lies to the north, and to the west, past the North Melbourne swimming pool and recreation centre, the Capital City Trail winds its way along the historic banks of Railway Canal to Victoria Harbour, Docklands and the Yarra.

A fifteen minute stroll south brings you to the heart of Flagstaff Gardens, and the city’s bustling epicentre lies just a stone-throw beyond.

Melbourne’s iconic trams stop at nearby Abbotsford Street and Flemington Road, while the Tullamarine Freeway, with its direct link to the airport is just moments from MILQ, and a network of dedicated bicycle lanes extend out in every direction.

North Melbourne, in which MILQ is located, boasts a tight vacancy rate of 1.8%. Its unique position gives investors the opportunity to attract tenants who work in local hospitals or tertiary institutions. In close proximity lies the Royal Melbourne Hospital, the new $1 Billion Victorian Comprehensive Cancer Centre (VCCC), Royal Children’s Hospital, University of Melbourne and RMIT University.


CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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Australia’s Housing Market to Remain Bubbling

Looks like the Australian housing bubble is here to stay for some time yet. Image credit: globalriskinsights.com

Very recently, the Victorian government announced the abolishment of the controversial stamp duty for first-time homebuyers. This ‘lifeline’ to young people struggling to get on the property ladder takes effect from July 2017 and is applicable for any homebuyer in Victoria whose property costs less than AUD$600K.

In a market where experts and market watchers are spouting concern over housing undersupply and skyrocketing house prices, this could well be the road to hell being paved by good intentions’.

Why?

Because simple economics tells us that cheaper property prices (in the form of the abolished stamp duty in this case) will stimulate demand. And increased demand in an overheated market will push prices higher in that price range. Even Federal Treasurer Scott Morrison has shared his reservations, which you can read here.

Compounding this is the low interest rates (the central bank slashed rates twice last year) which  contributed to the boom in house prices, particularly in Melbourne and Sydney. Experts argue that to put a dent in the housing market, the RBA would need to raise interest rates, which is unlikely due to concerns about inflation and the risk that it would impact the economy significantly.

Sharp increases in interest rates may not be the wisest thing to do because it will affect growth and if anything, the RBA would likely increase rates on a gradual basis.

Which is why it may be some time yet before the prices of property will collapse as interest rates would have to rise to a certain level before the property bubble will pop. An article in The Daily Reckoning reports that when the US housing market blew up in 2007/2008n, it was the result of the Federal Reserve raising rates 17 times (25 basis points each time) from 2004 to 2006.

So it seems most likely that the housing market may well bubble merrily away…and house prices in Melbourne at the very least will continue going higher for some time to come.

Read more at http://bit.ly/2m6wLL1

CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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Investor Club Kick-Off

A great start: our Investor Club has kicked off!

Last Friday (2nd March) marked the first instalment of our exclusive Investor Club meeting at the Cornerstone International Centre ballroom in Wisma Selangor Dredging Berhad.

Hot towels, a refreshing drink and the soothing strains of jazz music welcomed clients who traveled into the city after work. The ladies, in particular, were given a small floral arrangement to decorate their homes. A buffet line sat in a neat corner, offering our investor clients a selection of bites including grilled salmon, roasted chicken thigh, aglio olio pasta, pumpkin soup and homemade garlic toast (toasted on the spot!) and red velvet cupcakes and ice cold Thai tea.

For our first Investor Club meeting, we brought together mortgage specialists from various banks in Malaysia including OCBC, CIMB and Maybank who shared more about financing for Australian and UK properties. We also had an interesting presentation by Joan Tan from AIA on how to refinance existing property in order to invest in another property. Club members mingled freely and had a good time networking and chatting with the speakers while unwinding from a long day at work.

Our exclusive Investor Club is formed for our clients, with the sole purpose of giving back to them in the form of education, knowledge and fun — all this in keeping with our core values of Knowledge, Innovation, Service, Having Fun and Accountability. All investors are automatically members of the club and invited to attend monthly club events. Each event is planned and executed with the investor in mind.

“Our team is excited to do something like this for our clients. It is important to us that our clients get more from us than just a good investment property; we want to add value and one way of doing it is to organise such events which will enrich them in one way or another,” said CSI Prop team member and club co-organiser Francis Soosai.

To find out more about our Investor Club, email info@csiprop.com or call 03-2162 2260.

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Falkner Place – JAN 2017

On behalf of the developer, we are pleased to present the latest updates from the construction site of Falkner Place in Liverpool, UK. To enlarge and read, click on the image below:

There has been significant progress to the site, with foundations and excavations now complete. Works that have commenced include drainage, scaffodling and facing brickwork.

About Falkner Place 

Introducing Falkner Place, a new Georgian-inspired residential property investment located in the affluent Georgian Quarter of Liverpool. This impressive project will see 109 residential apartments built, ranging from studios, 1-bed, 1-bed duplex and 2-bed duplex units.

Falkner Place at the Georgian Quarter is just a short walk from Liverpool’s city centre and its main attractions, hospitals and universities. Residents will be well-positioned to capitalise on the continued regeneration of Liverpool’s city centre and its surrounding area.

Highlights 

  • From £89,950
  • 7% nett yield
  • 3 years rental assurance
  • Prestigious address
  • Walking distance to universities & hospital
  • Great transport links
  • 10mins to the city centre
  • Impressive on-site facilities


CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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One Wolstenholme Square – JAN 2017

On behalf of the developer, we are pleased to present the latest updates from the construction site of One Wolstenholme Square in Liverpool, UK. Click on the icon below to enlarge, flip and read.

A recap of One Wolstenholme Square and Liverpool as follows:

The Epicentre of History & Culture

Imagine being at the centre of a quaint and cultural city bustling with life and steeped in history…Welcome to One Wolstenholme Square, the latest £40 million development in the most desirable postcode in Liverpool.

Located five minutes away from the city’s attractions and top university campuses, One Wolstenholme Square comprises a selection of studio and one-bedroom residential apartments with a panoramic view of the Liverpool skyline and the remarkable World Heritage Waterfront.

Liverpool is one largest economies in the UK, and home to half a million people, some of the UK’s top universities, football clubs (Liverpool FC & Everton FC), a staggering student population of over 53,000 and, of course, The Beatles!

Investment Highlights

  • Prime location, prime rental market right in the city centre
  • 8% nett yield guaranteed for 3 years
  • Demand for housing from more than 53,000 students
  • Projected return of 9% nett after year 3
  • Thriving rental market
  • Rental returns outpace London (source: HSBC)
  • Exit to property market

Project Highlights

  • Fully furnished
  • Fully managed by professional management company
  • Large studio and 1-bedroom apartments
  • Located in the city centre
  • Walking distance to One Liverpool, Albert Dock, Mersey River, convenience stores and F&B outlets.


CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260

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Lantern – FEB 2017

On behalf of the developer, we are pleased to present the latest update from the construction site of Lantern Apartments in Collingwood, Melbourne. Kindly click on the image below to enlarge.

1 & 2 Bedroom Apartments in Historical Collingwood just 3.2km from the CBD

Collingwood is one of the hottest property spots for young professionals. Hip, happening, historical and increasingly gentrified, Collingwood is home to some of Melbourne’s best food and retail outlets, art, culture and fashion. This former industrial hub is now a magnet for creative people – artists, musicians, designers and their ilk.

Nestled between Ftizroy Garden’s miniature village (South), Yarra Boulevard’s cyclist and kayaker haven (East) and Carlton Gardens’ historical, manicured lawns (West), Lantern is centrally located, cutting a striking silhouette in this modern Melbourne suburb. Head to Smith Street – just one block away from Lantern – for a trip to the vintage boutiques, inventive bars, street art, amazing eateries and lots of shopping.

A lovely neighbourhood, with excellent connectivity by train, tram or bicycle paths, minutes away from the CBD!

 

***** Prices from $426,000 *****

 

Investment Highlight

  • 0.7% vacancy rate – strong rental market, tighter than Melbourne’s 4.4%
  • Only 3.2km to the CBD
  • Only 2.1km to Melbourne Uni
  • Accessibility: the iconic tram 86!
  • Increase in property median pricing in Collingwood
  • Collingwood average household income is 10% higher than Victoria’s
  • >50% of Collingwood population are young professionals and in managerial roles

Property Features

  • European-style kitchens
  • Upscale Bosch appliances
  • Porcelain benchtops & splashbacks
  • Grey oak timber floorboards
  • Roof top recreation deck & al fresco dining
  • 24-hr CCTV security & access to selected floors
  • Car parking for selected units


CSI Prop proudly promotes international investment property with high yields at low risk. Our portfolio comprises residential and purpose-built student property in cities across the United Kingdom (London, Luton, Manchester, Liverpool, Newcastle, York, Glasgow, Scotland; Sheffield, etc); Australia (Melbourne, Perth, Brisbane) and Thailand (Bangkok). Our projects are concentrated in high-growth areas with great educational, infrastructural and job growth potentials. We aspire to make a difference in the lives of our clients by helping them achieve their investment goals through strong market research backed by third party experts and due diligence. 

Disclaimer: CSI Prop does not provide tax & legal advice and accepts no liability. Readers are encouraged to consult a qualified tax or legal advisor for a thorough review.

Need advice or clarification? Call us for more information and/or to find out about our projects! Hotline: 03-2162 2260