The Compare the Financial Markets group is for sale

Includes the brand, our impeccable reputation (since 2010), and the family of domains.
I’m interested

INVESTMENT RELEASE – TESSERACT INTERACTIVE SERVICE PHASE 3
MAXIMUM INVESTMENT £50K
IMMEDIATE INCOME TAX DEDUCTION FOR 2012-13 OF £25,000


Please read the risk warnings and important information below in order to continue.

Risk warnings and important information
None of the content above should be considered to constitute investment advice. Individuals’ objectives and circumstances vary and as such appropriate investments for one may not be appropriate investments for all.
Past Performance is a poor indicator and certainly no guarantee of future performance.
Investments can fall as well as rise, and may fall considerably.
The value of investments is not guaranteed and you may not receive back the full amount invested.
The tax treatment of investments such as these, including the initial tax relief available, are dependent on the investment vehicle successfully maintaining qualifying status throughout its life.
Many tax advantaged investments are high risk investments and we strongly recommend investors do not consider investing on the basis of this information alone or investing without obtaining financial advice from an appropriate source.
Investments in small companies are speculative and the promise of higher potential returns comes with a commensurately higher risk of capital losses.
*Definition of a failed investment is the loss of 50% or more of the original investment.
All statements concerning the tax treatment of products and their benefits are based on our understanding of current tax law and HM Revenue and Customs’ practice. Levels and bases of tax relief are subject to change.

By entering your email address you agree that you have fully read and understood the statement above.

Your email:*

 Please tick this box if you are a Professional Investment Advisor.

Fast Track Your Property Portfolio

Fast track your portfolio. Why depth and focus, not surface area, are the key to investing wisely.

The world it’s changing, it’s changing fast, and technology is the driving force. The internet and mobile phones, tablets and notebooks have shifted the way we look at the world, and have irrevocably altered the way we communicate – even the way we think. They have also changed the way we view property.

Just fifteen years ago online property searches were a joke. Internet speeds were so slow that you might as well have popped down to the local estate agent, toured several properties and then dined out on chips and tea while you waited for the computer screen to render. Today, most of the property information we want is just a click away. We can drive or fly down streets with Google maps, albeit virtually, we can view property interiors and exteriors in high definition, down to the peeling paint and we can download Ofsted reports on local schools with just a few keystrokes. Everything is right at our fingertips. But does that mean we know it all?

My answer is ‘no’, because every area has its own personality with many idiosyncrasies, its own way of doing things. And you can only get a feel for it by walking its streets, driving its roads, and meeting the people.

The point is, property investment isn’t a folly, it’s serious business and it’s vital to carry out thorough due diligence. Yet most people don’t know where to start, or start in the wrong places and at the wrong times, often overlooking the most important factor of all – value.

Who would buy a property, a fabulous and imposing property at a knock down price, if they knew the now approved HS2 rail link would be running past it in a little over ten year’s time?

The facts of the future matter when it comes to investing in bricks and mortar; so, too, do the facts of the past and present. Long faded floods can affect present and future insurance premiums while proposed local development can have a positive or negative impact on property prices depending on whether the development is a new town centre or a nuclear power station. Against this backdrop, it’s important to remember that price should only ever be seen as a subset of value – a reflection of what a property is worth at a given point in time. Value has more to do with what has, is, or is about to happen that will affect property prices.

Looking at listings on major property web portals is little more than shop window viewing from the comfort of your own home or a café. It won’t necessarily provide a true reflection of comparative value. In my experience, many buyers don’t know where to begin when it comes to making an offer, partly because they lack real negotiation experience, but also because they believe that the prices they see are indicative of market value when often they aren’t. I’m not saying that estate agents are in the business of price fixing, but it is their duty to get as a high a price for their clients as possible. They’re also incentivised by index-linked commissions. Which is why, for a buyer, insight is everything.

One property buyer I know looks at up to twelve properties a day, every day, in the Leeds City Region. Because he is location specific, he knows historical prices, comparative prices, and he knows what those prices are likely to do in the future as a result of any drafted or approved changes in the area. He has a grasp of genuine market value and is therefore able to confidently make offers of 25% or more below that market value. Working in the Leeds City region also gives him the ability to get more for his clients’ money than he would do in the South.

Many investors can’t afford London price tags whether or not the property is discounted. 25% off of half a million quid, while a serious chunk of change, isn’t going to help somebody who only has £50k to invest. Property prices in Leeds and Sheffield, however, are wide open to people with this sort of budget.

Which brings me to my next point, which is that now that the new HS2 high-speed rail project has been given the go ahead, investors’ eyes are turning to the North in increasing numbers. Why? Because, the perceived value of the area has increased. By 2026, the £33billion scheme will link London to Birmingham, before extending to Manchester and Leeds. Travel times from the capital to the north of England will be halved, putting five of England’s most prosperous cities within commuting distance of each other. But investors will still need in depth local knowledge to know precisely which areas promise the greatest returns.

I’ve lived in the North of England for a long time, and I think that HS2 represents one of the greatest opportunities for investing in and around Leeds and Sheffield that I have seen in my lifetime. For savvy buy-to-let investors, those with a long-term view, I’d back a portfolio in the North over London and the South any day. Where else can you secure four or five properties for the price of one in London? Where else can you find a place where prices are low but where perceived value is rapidly gaining traction in light of what lies ahead?




LOOKING TO INVEST?

Enter your details and let our experts find the best possible deal for you



Print Friendly and PDF
<< Previous Next >>

EDITOR'S PICKS

Brazil Investments ? Ask the Experts at Compare The Financia

Find the best investment and alternative investment options

Compare the financial markets