As stock investors worry about the extreme volatility of the market, property investors wonder how much of an impact the current Covid-19 pandemic can have on house prices. Read more and learn if this is the time to buy UK property, and how to go about it with the best terms and returns.
#DidYouKnow — Historical evidence shows that the property market has remained resilient through significant economic shocks and crises, even bouncing back spectacularly after. Take a deeper look at how property markets have fared through the SARS pandemic and recession by clicking here.
UK PROPERTY: WHY BUY NOW?
Ironically, the most opportune time to buy/ invest in property is during a crisis because that’s when you get the best deals and terms. The important thing is to make sure you pick the right location, a good developer (track record is important) and negotiate the best terms. Of course, if you have strong insider relationships and the ability to group-buy multiple units, you may be in a position to secure a fabulous private bulk deal.
Completion counts too. For example, investors of projects with a later completion date, e.g. Mount Yard or Elizabeth Tower in Manchester, or Western Circus in London, do not need to worry about tenant occupancy risk as these projects will be completed in 2021. By then, things would have settled and mitigating steps to deal with Covid-19 would have been put into place.
HOW YOU CAN GET A 45% DISCOUNT ADVANTAGE* NOW
BEST BUYING OPPORTUNITY EVER
If you invest in UK property now, you could take advantage of up to a cumulative 45%* discount advantage from a combination of great deals/ terms, massive interest rate cuts and the currency at an all-time low.
Note that while these Grade A developers never usually give discounts, it is thanks to our strong relationship and size of our investor community that we were able to secure a 5% rebate for our private group deal for 25 units. This is a once-in-a-lifetime deal that only CSI PROP have managed to secure; you won’t get this with anyone else.
Advantage 1: Fantastic Rebates & Terms
Big developers with strong backing do not need to offer discounts (and they usually don’t), however CSI PROP has managed to get both a discount AND a rebate, which is literally unheard of! Under these terms which CSI PROP has negotiated, you get an additional 7% ROI growth compared to normal circumstances (40% – 33%).
Advantage 2: Massive Interest Rate Cuts
With interest rates being cut in the UK to near zero, banks are now offering mortgages at much lower rates — giving you up to 18% in savings.
Advantage 3: All-Time Low Currency
The pound sterling is at an all-time low, at roughly 40% below its peak and providing 20% savings when compared to rates pre-Brexit. Below is an illustration of the savings you now get by taking advantage of the currency exchange rate:
TOTAL DISCOUNT ADVANTAGE
Adding everything together, your total discount advantage is 45%!
FACTS: THE QUESTION OF RISK IS LOW.
(i) Severe Housing Shortage
Financial downturns have done little to dampen the spectacular growth of the UK housing market since 1952. This is because one of the UK’s biggest issues has been the critical lack of housing, and 240,000 to 340,000 homes need to be built in England each year till 2031 to make up for the current shortage of almost 4 million homes! Read more about the UK’s housing shortage here.
(ii) Tight Vacancy Rates
The housing undersupply has caused extremely tight vacancy rates in the UK, particularly in bustling cities like London and Manchester. London’s vacancy rate is at a slim 1.9% while Manchester’s is at an even skinnier 1.7%! This means only 1 out of 50 houses are available for rent/sale! The housing shortage and tight vacancy rates will continue to drive prices, rents and capital growth over the years!
(iii) Property investment is not volatile
Unlike stocks, property does not have a volatile and sudden reaction to market sentiment. Its adjustments to crisis are not instant, and it is also far more resilient. Seasoned investors know this! There comes a time when investors need to really sit up and recognise opportunity for what it is. That time is now.
“The time of maximum pessimism is the best time to buy…The time of maximum optimism is the best time to sell.
– Sir John Templeton