Category Archives: Tips

11 Facts About Liverpool

Posted on by Aspen Woolf UK

Psst… Do you know Liverpool?

You know, a lot of people don’t actually know that much about Liverpool, besides the obvious fact that The Beatles comes from there. And that’s such a terrible shame for such a beautiful city! We think it’s about time someone actually pointed out some interesting facts about Liverpool. Here are 11 things you most likely never even knew about the city that brought us one of the greatest music groups in world history.

11 Facts About Liverpool

1. Is a World Heritage Site

Liverpool’s waterfront is a designated World Heritage Site. That puts it on par with the Taj Mahal and the Great Wall of China!

The accolade was granted by UNESCO in July 2004. The city’s bid was centred on Liverpool as a Maritime Mercantile city and reflected the city’s significance as a commercial port at the time of Britain’s greatest global influence.

The World Heritage Site stretches along the waterfront from Albert Dock, through The Pier Head and up to Stanley Dock, and up through the historic commercial districts and the RopeWalks area to St George’s Quarter, which is dominated by the magnificent St George’s Hall.

11 Facts About Liverpool

2. Has more museums and galleries than anywhere outside London

Liverpool has one of the most impressive collections of museums in Europe.

Opened in 2011 in a landmark waterfront building, the Museum of Liverpool is the UK’s first museum dedicated to the history of a city. Visitors can explore how Liverpool’s port, its people and its creative, industrial and sporting history have shaped the city.

Many museums and galleries are located around the Albert Dock, such as the Merseyside Maritime Museum and International Slavery Museum, where you can find out all about the companies, people and ships connected to this port city.

St George’s Quarter, close to Lime Street station, is home to World Museum, where you can discover treasures from around the world, meet live creatures and explore outer space.

Tate Liverpool needs no introduction – it stages major international exhibitions of modern art, featuring work by everyone from Tracey Emin to Picasso.

Open Eye Gallery is an independent not-for-profit photography gallery championing photography as an art form and staging challenging and entertaining exhibitions.

11 Facts About Liverpool

3. Has the most amount of Grade II-listed buildings outside London

Liverpool has the largest collection of Grade II-listed buildings outside London. The city has 2,500 listed buildings and 250 public monuments.

11 Facts About Liverpool

4. Had the world’s first passenger railway line

The world’s first passenger railway line was built in 1830, from Liverpool to nearby Manchester. A local member of Parliament was killed soon after, in the first ever railway accident.

11 Facts About Liverpool

5. Had the first lending library, school of tropical medicine, and school for the blind

Liverpool was the first city in the world to have a lending library, a school of tropical medicine and an American consul. It was the first UK city to have a school for the blind!

11 Facts About Liverpool

6. Is a filming industry hotspot

Liverpool has a thriving film industry. Films that have been shot there include The Hunt For Red October, The 51st State, The Parole Officer and Letter To Brezhnev. The city was used as a location for more than 140 films last year and has doubled for Moscow, Dublin, Paris and even Venice.

11 Facts About Liverpool

7. Holds the Guinness Book of Records title for being the Capital of Pop

Now this is almost too obvious to even mention… but heck, it needs to be said! Liverpool holds the Guinness Book of Records title for being the Capital of Pop. More artists with a Liverpool origin have had a number one hit than from any other location. And of course, Liverpudlian legends The Beatles changed the face of popular music.

11 Facts About Liverpool

8. Most successful footballing city in all of England

Liverpool is the most successful footballing city in England, home to both Liverpool and Everton. It has won 27 League championships, five European Cups, three Uefa Cups, one Cup Winners cup, 11 FA Cups, and six League Cups.

11 Facts About Liverpool

9. Was once the “Second City of Empire”

The city of Liverpool was created in 1207 when King John granted a Royal Charter which was written in Latin. Liverpool was once the “Second City of Empire”, eclipsing even London for commerce at times.

11 Facts About Liverpool

10. Was the European Capital of Culture in 2008

The European Capital of Culture is a city designated by the European Union for a period of one calendar year during which it organises a series of cultural events with a strong European dimension. Liverpool beat five other hopefuls – Bristol, Birmingham, Cardiff, Newcastle-Gateshead and Oxford – to win the coveted prize.

11 Facts About Liverpool

11. Is the 5th most popular destination for international visitors

Liverpool in 2013 was the 5th most popular destination for international visitors with 562,000 staying visits up from 550,000 in 2012. And 5th most visited English destination for British domestic visitors (1.68m overnight visits).

It was 6th for pure holiday trips (703,000) in 2012 and 6th for business tourism (289,000)!

Liverpool welcomes approximately £58 million visitors per year, and the tourist industry therefore supports 48,600 jobs. Its popularity is thought to be due to The Beatles, its extensive maritime history, its flourishing art scene and its exceptional leisure facilities, such as Liverpool One.

Liverpool is one of the world’s most distinctive and creative cities. From its stunning World Heritage waterfront to its vibrant culture, stylish shops and restaurants, it’s a city with a unique spirit and personality. It’s a city that even Londoners are leaving the capital for, so why not enjoy some hot Scouse and take in everything this fabulous city has to offer!

Enjoyed this post? Why not check out our post about 11 Facts About Leeds as well!

This Article was written by Harri Laitalainen, a property investment fanatic, marketing professional, and Liverpool fan.

Ten Tips For Buy-To-Let

Posted on by Aspen Woolf UK

The Essential Advice for Property Investors

Continuously inhabited for over 2,000 years, Leicester truly is the beating heart of England. It’s a unique Bricks and mortar: Buy-to-let is a popular option for those who would rather grow their wealth through property than shares or cash

For many buy-to-let looks an attractive income investment at a time of low rates and stockmarket volatility. But if you are considering investing in property – or improving your returns on a buy-to-let you already own – it’s important to do things right. Read these top ten buy-to-let tips – the essential guide to successful property investing.

Buy-to-let may not be quite the hot property of the boom years, but it has seen a resurgence in recent times.

As an income investment for those with enough money to raise a big deposit buy-to-let looks attractive, especially compared to low savings rates and stock market volatility.

Meanwhile, the property market bouncing back has encouraged more investors to snap up property in the hope of its value rising.

Mortgage rates at record lows are helping buy-to-let investors make deals stack up – you could fix a mortgage for five years at just over 3 per cent at the biggest deposit level.

But beware low rates. One day they must rise and you need to know your investment can stand that test.

Recent history provides an important lesson in that. Many investors who bought in the boom years before 2007 struggled as mortgage rates rose. A sizeable number were thrown a lifeline when the base rate was slashed to 0.5 per cent.

Rates have stuck there since 2008, but remember they will rise again.

Despite the potential for costs to rise, more tenants in the market, rising rents and improving mortgage deals have tempted investors once more.

If you are planning on investing, or just want to know more, we tell you the ten essential things to consider for a successful buy-to-let investment.

Like any investment, buy-to-let comes with no guarantees, but for those who have more faith in bricks and mortar than stocks and shares below are This is Money’s top ten tips.

Buy-to-let Mortgage Rates Tumble, But Beware The Big Fees

Buy-to-let rates have followed residential deals down, but remain slightly more expensive than mortgages offered to owner occupiers.

Landlords need to beware fees, which can substantially push up the cost of a mortgage, especially if they are only fixing or tracking for a short deal period.

The biggest fees are typically those charged as a percentage of the loan but even flat fees can run to £2,000. The good news is that you should be able to claim these back against tax, speak to an accountant if you need help with this.

Natwest offers the lowest fixed rate buy-to-let mortgage on the market at 2.25 per cent with a £1,995 fee, but you will need to have 40 per cent to put down.

A slightly higher two-year fixed rate for landlords is 2.34 per cent from Virgin Money, this requires a £1,995 fee but comes with £500 cashback.

For a longer term five-year deal, Abbey for Intermediaries has a rate of 3.29 per cent with a £1,500 fee. A slightly higher five-year fix is also from Virgin Money at 3.19 per cent. It also has a £1,995 fee and £500 cashback.

Both these loans require a 40 per cent deposit.Typically buy-to-let borrowers must put down a deposit of at least 25 per cent. The best two year fix at this level is from Abbey for Intermediaries with a two-year fixed rate at 2.79 per cent with a £1,995 fee for a 25 per cent deposit.

You could fix for five years with Metro Bankat 3.79 per cent with a £1,999 fee.

1. Research the market

If you are new to buy-to-let, what do you know about the market? Do you know the risks, as well as the benefits.

Make sure buy-to-let is the investment you want. Your money might be able to perform better elsewhere.

In recent years a high-rate savings account would beat most investments. Now rates are lower, but investing in buy-to-let means tying up capital in a property that may fall in value.

This compares to the possibility of a 5% annual return from an income-based investment fund, or 3 per cent on a fixed rate savings account.

Remember that the return from an investment in funds, shares or an investment trust through an Isa will see you escape tax on income and get capital growth tax free. You will also have the ability to sell up quickly if you want.

The flip-side is that you cannot buy an unloved investment fund and set about renovating it and adding value yourself.

Investing in buy-to-let involves committing tens of thousands of pounds to a property and typically taking out a mortgage. When house prices rise, this means it is possible to make big leveraged gains above your mortgage debt, but when they fall your deposit gets hit and the mortgage stays the same.

Property investing has paid off handsomely for many people, both in terms of income and capital gains but it is essential that you go into it with your eyes wide open, acknowledging the potential advantages and disadvantages.

If you know someone who has invested in buy-to-let or let a property before, ask them about their experiences – warts and all.

The more knowledge you have and the more research you do, the better the chance of your investment paying off.

Rising demand: Levels of home ownership are falling, particularly among young people, meaning more renters
Rising demand: Levels of home ownership are falling, particularly among young people, meaning more renters

2. Choose a promising area

Promising does not mean most expensive or cheapest. Promising means a place where people would like to live and this can be for a variety of reasons.

Where in your town has a special appeal? If you are in a commuter belt, where has good transport? Where are the good schools for young families? Where do the students want to live?

You need to match the kind of property you can afford and want to buy with locations that people who would want to live in those homes would choose.

These questions might sound overly simplistic, but they are probably the most important aspect of a successful buy-to-let investment

In most cases people tend to invest in property close to where they live. On the plus side, they are likely to know this market better than anywhere else and can spot the kind of property and location that will do well. They also have a much better chance of keeping tabs on the property.

Yet it is also worth bearing in mind that if you are a homeowner then you are already exposed to property where you live – and looking for a different type of home in a different area might be a good move.

3. Do the maths

Before you think about looking around properties sit down with a pen and paper and write down the cost of houses you are looking at and the rent you are likely to get.

Buy-to-let lenders typically want rent to cover 125% of the mortgage repayments and many now demanding 25% deposits, or even larger, for rates considerably above residential mortgage deals.

The best rate buy-to-let mortgages also come with large arrangement fees.

Once you have the mortgage rate and likely rent sorted then you must be clinical in deciding whether your investment work out?

Don’t forget to factor in maintenance costs.

What will happen if the property sits empty for a month or two?

These are all things to consider. Make sure you know how much the mortgage repayments will be and if it is a tracker allow for rates to rise.

4. Shop around and get the best mortgage

Do not just walk into your bank and building society and ask for a mortgage. It sounds obvious, but people who do this when they need a financial product are one of the reasons why banks make billions in profit.

Read This is Money’s buy-to-let section for details of latest buy-to-let mortgage deals highlighted and check lenders’ websites, Skipton BS, BM Solutions, NatWest, Woolwich, Coventry BS, Platform (part of Co-op Bank) and Accord (part of Yorkshire BS) have been consistent in recent years.

It pays to speak to a good independent broker when looking for a buy-to-let mortgage. They can not only talk you through what deals are available but they can also help you weigh up which one is right for you and whether to fix or track.

You should still do your own research though, so that you can go into the conversation armed with the knowledge of what sort of mortgages you should be offered.

Can You Still Get Into Buy-to-let?

Many long-term existing buy-to-let investors are sitting comfortably on low mortgage rates, having seen standard variable rates fall as base rate was slashed down to 0.5%.

Some buy-to-let deals before the financial crisis did not have typical SVRs but a revert rate that tracks the bank rate. Long-term landlords are benefiting from that still.

However, new buy-to-let mortgage deals remain more expensive than residential deals and require a big deposit.

If investors are willing to accept that they may find the value of their property slides in the short term, and can ensure their property meets the criteria of 75% loan-to-value and returning 125% of monthly mortgage payments then it can be a good long-term investment.

The key is to think long-term though.

5. Think about your target tenant

Instead of imagining whether you would like to live in your investment property, put yourself in the shoes of your target tenant.

Who are they and what do they want? If they are students, it needs to be easy to clean and comfortable but not luxurious.

If they are young professionals it should be modern and stylish but not overbearing.

If it is a family they will have plenty of their own belongings and need a blank canvas.

Remember that allowing tenants to make their mark on a property, such as by decorating, or adding pictures, or you taking out unwanted furniture makes it feel more like home.

These tenants will stay for longer, which is great news for a landlord.

It is also possible to take out an insurance policy against your tenant failing to pay the rent, usually known as rent guarantee insurance. This can cost as little as £50, and is available as a standalone product from a specialist provider, or as part of a wider landlord insurance policy.

Starting to sink? When compared on a month-by-month basis prices are actually falling, Nationwide found
Starting to sink? When compared on a month-by-month basis prices are actually falling, Nationwide found

6. Don’t be over ambitious – go for rental yield and remember costs

We have all read the stories about buy-to-let millionaires and their huge portfolios.

But while you may expect long-term house price rises, experts say invest for income not short-term capital growth.

To compare different property’s values use their yield: that is annual rent received as a percentage of the purchase price.

For example, a property delivering £10,000 worth of rent that costs £200,000 has a 5% yield.

Rent should be the key return for buy-to-let.

How To Work Out The Return On Your Investment

Remember, if you are buying with a mortgage, rent-to-property price yield will not be the return you get.

To work out your annual return on investment subtract your annual mortgage cost from your annual rent and then work this sum out as a percentage of the deposit you put down.

For a £100,000 property that could rent for £500 per month, you would need a £25k deposit and roughly £2,000 in buying costs.

£75k mortgage at 5% interest rate = £312.50
£500 rental income x 12 = £6,000
Difference = £2,250
Deposit + buying costs = £27k
Annual return = 8.3%

Don’t forget tax, maintenance costs and other landlord expenses will eat into that return.

Most buy-to-let mortgages are done on an interest-only basis, so the amount borrowed will not be paid off over time.

This is tax efficient, as you can offset mortgage payments against your tax bill.

If you can get a rental return substantially over the mortgage payments, then once you have built up a good emergency fund, you can start saving or investing any extra cash.

Remember though, people rarely buy a home outright and they come with running costs, so mortgage costs, maintenance and agents fees must be worked out and they will eat into your return.

You may want to consider whether buy-to-let still beats an investment fund or trust once these costs are taken into account.

Once mortgage, costs and tax are considered, you will want the rent to build up over time and then potentially be able to use it as a deposit for further investments, or to pay off the mortgage at the end of its term.

This means you will have benefited from the income from rent, paid off the mortgage and hold the property’s full capital value.

7. Consider looking further afield or doing a property up

Most buy-to-let investors look for properties near where they live.

But your town may not be the best investment.

The advantage of a property close by is being able to keep an eye on it, but if you will be employing an agent anyway they should do that for you.

Cast your net wider and look at towns with good commuting links, that are popular with familes or have a sizeable university.

It is also worth looking at properties that need improvement as a way of boosting the value of your investment. Tired properties or those in need of renovation can be negotiated hard on to get at a better price and then spruced up to add value.

This is one way that it is still possible to see a solid and swift return on your capital invested. If you can add some value to a home straight away then it gives you a greater margin of safety on your investment

However, remember to ensure that the price is low enough to cover refurbishment and some profit and that you allow for the inevitable over-run on costs.

A good rule to follow is the property developers’ rough calculation, whereby you want the final value of a refurbished property to be at least the purchase price, plus cost of work, plus 20 per cent.

Pricey: On Nationwide’s measure which uses average earnings across the board, property is far more expensive than it was at the end of the 1980s boom – this is driving more people to rent, but may also limit capital gains on property
Pricey: On Nationwide’s measure which uses average earnings across the board, property is far more expensive than it was at the end of the 1980s boom – this is driving more people to rent, but may also limit capital gains on property

8. Haggle over price

As a buy-to-let investor you have the same advantage as a first-time buyer when it comes to negotiating a discount.

If you are not reliant on selling a property to buy another, then you are not part of a chain and represent less of a risk of a sale falling through.

This can be a major asset when negotiating a discount. Make low offers and do not get talked into overpaying.

It pays to know your market when negotiating. For example, if the market is softer and homes are taking longer to sell you will be better able to negotiate. It is also useful to find out why someone is selling and how long they have owned the property.

An existing landlord who has owned a property for a long time – and is cashing in their capital gains -may be more willing to accept a lower offer for a quick sale than a family that needs the best possible price in order to afford a move.

9. Know the pitfalls

Before you make any investment you should always investigate the negative aspects as well as the positive.

House prices are on the up right now but growth has slowed and they could fall again. If property prices dip will you be able to continue holding your investment?

Meanwhile, rates are low at the moment and that is encouraging people to invest with rent comfortable covering the mortgage, but what will you do when rates rise?

Consider too the standard variable rate you may move to after a fixed rate period. What will happen if you can’t remortgage?

Even in popular areas properties can sit empty. One rule of thumb many buy-to-let investors apply is to factor in the property sitting empty for two months of the year – this gives a substantial buffer.

Homes often need repairing and things can go wrong. If you do not have enough in the bank to cover a major repair to your property, such as a new boiler, do not invest yet.

10. Consider how hands-on you want to be

Buying a property is only the first step. Will you rent it out yourself or get an agent to do so.

Agents will charge you a management fee, but will deal with any problems and have a good network of plumbers, electricians and other workers if things go wrong.

You can make more money by renting the property out yourself but be prepared to give up weekends and evenings on viewings, advertising and repairs.

If you choose an agent you do not have to go for a High Street presence, many independent agents offer an excellent and personal service.

Select a shortlist of agents big and small and ask them what they can offer you.

If you are considering going it alone look at where you will advertise your property and where you will get documents, such as tenancy agreements from.

It really pays to look after your tenants. Do this and they will look after you.

The biggest drag on many buy-to-let landlord’s investment returns is the void period. A time when you don’t have anyone in the property. Good tenants who want to stay help avoid this – and if they move on they may even recommend your property to someone they know.

Keep up with maintenance, make sure your property is a nice place to live and try and build a good personal relationship with your tenants.

Original Article By Simon Lambert for Thisismoney.co.uk Updated: 08:34, 22 April 2015

The London Myth Broken

Posted on by Aspen Woolf UK

“Average gross yields of 8% in Manchester compare to 4.5% in London, while a typical two bed investment property costs in the region of £90,000 versus £300,000 in the capital.”

London has always been a hot topic in property investment. But is it really worth the hype?

London always had and most likely will always have demand when it comes to housing. Whether you are based in England or beyond, a quick look at England’s capital will show you that property prices are buoyant, disproportionately so to the rest of the UK. But that doesn’t automatically mean it is a great place to invest.

Of course this all depends on your personal strategy and why you are investing in property in the first place. Whether you are employed or a full time investor, one should recognise the importance of cash flow in property business. Without significant cash flow a portfolio can easily fall into financial difficulties and risk the whole business and portfolio.

When it comes to facts, the costs of buying property in London is much higher than in anywhere else in the UK. While house prices have risen, rents haven’t. At least not near enough to facilitate a good rental return. This leaves an investor with a rental yield far below that which is achievable from other UK cities. A higher purchase price and high mortgage means more pressure on you, as the landlord and investor, to squeeze profit out of the rental income.

Add to this a recent report published by the Office of National Statistics, 58,220 people aged from 30 to 39 left London between June 2012 and June 2013; a record number, and a 10% increase on 2010. Escaping the rat race for the fresh air of the countryside. A huge number are moving to smaller cities that have ten times the charm: Manchester, Birmingham, Leeds, Sheffield, Liverpool and Newcastle. They are no longer willing to be hoodwinked into believing that London is the only place in the country with museums and culture. People simply can’t afford to keep up with the prices and it seems they are no longer putting up with it. Forsaking a “higher” London salary for more spacious houses and a better quality of life in other cities.

For example, from an investment perspective, if you head further north to Manchester, Sheffield, or even Leeds, you can buy a property from £56,250. With rents at £550 – £800 pcm on a single let, that means your overall yield could be 7% and above. And if you find the right area and multi-let the property, or buy multiple units – just imagine what you could earn!

When you turn north, you tend to get 3 times the amount that some of the most known central areas in London currently generate. For example if you look at Totallymoney’s (The credit comparison company) recent ‘heatmap’ of the potential yield from rental properties across the UK you will notice that Mayfair only generates a 2.02% rental yield compared to a 9% rental yield in other northern cities. Even an area as popular as South Kensington, not far from Harrods, only produces a rental yield as low as 1.56%.

London will always be a sizzling focus in terms of property, but it’s seeing its light wane while other cities start to outshine it. So why not save money, get on the property ladder, secure a monthly income, and see a better return?

Quick Recap:

London Yields:

1. South Kensington at 1.56%
2. Mayfair 2.02%
3. Soho 2.02%
4. Chelsea 2.09%

Yields Achievable Outside London:

1. Sheffield 7% or over
2. Leeds 7% or over
3. Manchester 7% or over
4. Liverpool 7% or over

This Article was written by Harri Laitalainen, a property investment fanatic, marketing professional, and chocolate addict.

Note: The views expressed are the author’s own and do not reflect in any way, the views of Aspen Woolf. Readers are advised to carry out their own due diligence before taking any decision.

Why Invest In Studios?

Posted on by Aspen Woolf UK

Studio Apartments Today

Studios have been on the rise in recent times. You see them in every key city. But why? Why would someone want to live in a studio, and what makes it so appealing to investors? Let’s start by answering a few key questions first.

A studio tenant usually belongs to the growing working class. They want affordable, modern, stylish, and manageable houses, something that developers have been very quick to cater to. Over the past few years, studio apartments have been cropping up in metro cities all over the UK. The number of new houses currently being built in England jumped 31% in just 12 months according to statistics released by the Department for Communities and Local Government. However, despite the growth in both completions and starts, new housing construction remains far below pre-recessions peaks.

Quick Recap: How do Landlords Gain From Property?

There are two main ways landlords make money through property letting; capital growth and rental income growth. Let’s take a quick look at these.

Why Invest in Studios-01

Capital Growth

When a property increases in value over time, it is known as ‘capital growth’. Capital growth, also known as capital appreciation, has been strong in recent times. But as we all know the value of property can go up as well as down at any time, and it is something that no one can predict. And of course the local conditions surrounding your property have a big effect.

Rental Income

Rental income, or ‘rental yield’, is another very important factor. It’s what the tenant pays you to live and use your property, and hopefully this will grow over time too. It is also hard to predict rental income, but it is usually a more reliant variable as even if a property value decreases due to economic conditions, usually rental incomes stay relatively the same. As a consequence of the recession, the private rented sector grew strongly, primarily at the cost of home ownership. Rental prices tend to follow an annual increase of inflation as well, so year on year prices tend to rise.

Why are Studios so Great?

Most property developers include a certain number of studio apartments in their projects because these are usually the first to be bought and, therefore, generate instant working capital for them.

Why Invest in Studios-02

Owning A Low Cost Asset

We asked one of our recent property investors, Ellie Woods, about why they decided to buy a studio. Ellie bought a studio recently to live in herself in order to help save up for something bigger in the future. Ellie said “The main advantage is that my monthly outgo for the studio apartment will remain the same since the EMI (Equated Monthly Instalment) will be equal to the rent that I am currently paying anyway. Besides, I will own an asset whose price will rise in the future. Property is an investment and I don’t see my Studio depreciating anytime soon”.

Also known as bachelor apartments or efficiency apartments, studio flats are small and self-contained units, with sizes ranging from 400-500 sq ft. This is why they are the most affordable options in a building project.

Should you buy a studio apartment?

This depends on your need. Studios are best for singletons, students, or couples that are looking to buy for themselves or family members.

Why Invest in Studios-02

Starting Out, Students, and Young Workers

“Most people who have just started their first job out of university or those young couples that have recently got married can’t afford to buy big apartments, especially in metro cities, where housing is expensive even if you rent it,” says Darren Hughes the Sales Manager at Aspen Woolf. He adds “Plus, people’s perceptions and needs have changed. Utilities and commuting have become more expensive. People now want modern flats that they don’t have to keep fixing, that are more economical and environmental, near to city centres and the lifestyle those city centres bring.”

For such people, a studio apartment is a good option, particularly if they spend most of their time at work. It’s even better if they can buy one near their workplace as it will help them save on transportation cost. “Usually, young people want to stay in an affordable place and sell it when they move to a different city for work.”

These properties also work for parents whose children are pursuing higher education degrees in Universities and may otherwise have to stay in a shared house, hostel, dorm, or somewhere far from their studies.

So as a quick recap, studios are great for anyone starting out in property investment, for students, and for young workers.

Why Invest in Studios-03

Lower Price and No Stamp Duty

Besides the low price, another obvious advantage is that the stamp duty for such houses is less, or in most cases completely free! For instance, if you buy a flat worth £125,000 in Liverpool, the stamp duty will be absolutely free. However, if you buy one that costs anything above £125,000 and up to £250,000, the stamp duty will be 1%. This equates to a minimum of £1250 to a maximum of £2500 in stamp duty charges alone. It can go even higher if you decide to buy a property over £250,000, in which case the charge goes up to 3%. Thus if you buy a property for £300,000, a very low price for a studio to a 1 bed in London, you would look at stamp duty of £9000. You can check how much you need to pay as stamp duty by using the various calculators on real estate portals, such as stampdutycalculator.org or hmrc.gov.uk.

Is it worth an investment?

A studio apartment can be a good investment if you are a newbie or conservative investor wary of putting your money in equity or mutual funds. Most people consider real estate a safe investment option, so buying a studio apartment, for which you need to pay a home loan EMI of around £400; can be an extremely feasible choice. Or better yet if you can buy one outright, then you can enjoy the higher than average rental yields that studios generally generate. If you do your research you can easily have the rent covering the mortgage costs if you do end up getting a mortgage and get a little bonus on top of that as well. If you buy a studio from a development that is fully managed then you are left with almost no hassle at all except for service charges and ground rent.

Why Invest in Studios-05

Selling Up

Even if you move to a bigger house later on, a studio guarantees a rental income. Alternatively, you could sell the flat and use the sale proceeds to make a down payment for a second house. These flats are easy to sell as the demand for smaller apartments is always higher than those for larger ones. This is especially true in England where there are growing student numbers and a growing younger population.

Better Investment Offerings

Studio apartments are an attractive option for real estate investors because of the high capital appreciation and good rental yields they offer. “Studio apartments in business centres and major city centres, such as Liverpool, Manchester, Sheffield and parts of Scotland, are in big demand. Prices have witnessed a capital appreciation of 10-17% a year in the past 3 years, with certain areas and cities much higher” he adds.

Why Invest in Studios-06

Location

While buying a studio apartment, the most important aspect to consider is of course location. Location is always important in any property investment, but more so for studio properties. If you are looking for a buy-to-let for young professionals then you should buy be near a workplace hub and/or city centre as this will guarantee a steady stream of tenants or future buyers. If you want to buy for your own children going into university studies or as a commercial student buy-to-let investment then make sure that the studio is located within prime educational hubs and/or an easy reach to Universities. Studio apartments around these areas are in prime demand, especially if professionally managed.

Another good option that many people don’t think about is if it’s close to a major medical hub or hospital. Families of most people who have to undergo long treatments prefer to live in a studio apartment rather than shell out money for expensive hotel rooms.

Try and opt for a project in an area which has good connectivity and where new industries are being set up. Find out if any major government projects are coming up as this will enhance the resale value of your house.

Modern Alternative Options

Many people have also turned to Airbnb as an additional revenue source, especially in more touristy areas of cities. You can easily get a greater amount of revenue with the help of Airbnb reservations, but the downside of that is of course the fact that the studio might not be occupied 100% of the time.

Attractive Yields and Capital Gains

Andrew Donnelly, CEO of property marketing firm Whiterock Capital Partners, says studios can command rental yields of 1% to 1.5% higher than one-bedroom and two-bedroom apartments.

“That means from an investment perspective, studios are affordable to buy, but the yields are much better than bigger properties,” he says.

“Studios offer yields closer to 6%, whereas a one-bedroom apartment will provide a yield of 5% and a two-bedroom a yield of 4.5%. And when it comes to renting out studios, there’s a queue halfway down the street with people wanting to rent these properties.”

However, he says investors after quick capital gains should steer clear of studios. “It depends on why they’re investing,” McDonnell says. “If it’s for short-term capital gains, I wouldn’t advise them to buy a studio as capital growth isn’t as strong in the short term as it is for bigger apartments.

“But if you’re looking for strong rental return and an investment you don’t have to think about, then go for a studio.”

Why Invest in Studios-06

I keep hearing something about a Furniture Pack?

If you plan to sell the apartment after a few years, it might be worth buying an unfurnished one. Though developers offer fully furnished studio apartments, most of the time you won’t actually know the cost of each piece of furniture or electrical item. So, it makes more sense to choose and pay for your own fittings and furnishing. Fittings are almost always set as developments get them cheaper by buying them in bulk, but a furniture pack is usually more flexible. However if you want to buy your own furniture keep in mind most developments cannot then guarantee yields if you choose to furnish the studio yourself. It is something each investor has to weigh up. If you are more geared towards an assured rental yield, then it’s best to pay a small fee for a furniture pack.

On the other hand if you are a seasoned investor and already know what yields you can generate from a studio within a certain area, then you could potentially save a bit of money by opting out of the furniture pack. Or if you are buying it for yourself or your own children, then why not furnish it with the furniture you want!

In Conclusion

Studio apartments are low-maintenance, affordable and concentrated in the trendiest parts of town. No wonder studio apartments are proving hard to resist for buyers and tenants alike.

For investors, studios are a more affordable and safer option than bigger properties and can provide a higher rental return.

In the last few decades, studios have become increasingly popular, particularly among the young and city dwellers, and there’s often little alternative if you wish to live in a city centre. It might just be the step you’ve been looking to get onto the increasingly competitive property ladder.

Advantages

The advantages include the following:

  • Increased security (provided it isn’t a basement or ground floor apartment)
  • Lower property taxes than detached homes
  • A range of sports and leisure facilities may be provided
  • Community living with lots of social contacts and the companionship of close neighbours
  • Communal serviced gardens, lawn and pool maintenance if available
  • Fewer responsibilities than with a house
  • Ease and low-cost of maintenance
  • Lower running costs than a house
  • The ability to live in a location where owning a house would be expensive, e.g. a city centre
  • Higher rental yields
  • An easier step onto the property ladder
  • Usually has no Stamp Duty, dependant on price
  • Smart use of space

 

If you learned something new from this this article and want to take the next step, then why not quickly check out our 5 Ways To Spot An Up-And-Coming Area before you take your final plunge into property!

This Article was written by Harri Laitalainen, a property investment fanatic, marketing professional, and lover of Boston Terriers.

Note: The views expressed are the author’s own and do not reflect in any way, the views of Aspen Woolf. Readers are advised to carry out their own due diligence before taking any decision.

UK Pensions Are Changing

Posted on by Aspen Woolf UK

Pensions Are Changing

As of the 6th of April, 2015 you’ll have more freedom than ever before over how you take money from your pension pot. This is the opportune time to sit down and very seriously think about what you would do with your pension.

Pension changes affect you if:

  • you’re 55 or over, and
  • have a pension based on how much has been paid into your pot (a defined contribution pension)

Once you retire you can decide how to take the money from your pension pot. It doesn’t matter if your pot comes from a private pension you set up yourself, a workplace pension you paid into, or both.

You can usually take 25% of your defined contribution pension pot tax free.

The remaining 75% you can take as:

  • an annuity – you buy an insurance policy that gives you an income for the rest of your life
  • flexible income – your pot stays invested while you take money from it
  • cash – you take your whole pot in one go, or in smaller sums

You can also mix some of these options. You don’t have to put all the money from your pot into these options. You can leave part of it untouched. Your pension provider might offer other options in the future.

Many people are now wondering what to do with their pensions. Property Investments, cash withdrawals, and luxury holidays are some things we have heard of a lot. It is best to shop around, do some research, and make a commitment you are most comfortable with. It’s your pension and you worked hard for it, so it’s only fitting that you give it the same time and consideration.

If you want to find out more about your pension, or even just information about the new changes, then we highly suggest going to Pensionwise. It is a free and impartial government service that helps you understand your new pension options. It’s a great place to start if you haven’t yet thought about what to do in this very new situation. Pensionwise even have a section about “How to avoid a Pension Scam”, which we highly suggest reading before you jump into anything.

If you have questions regarding your pension we are also happy to help, just send us an email. Whichever option you decide on, we hope this new and exciting change facilitates your retirement dreams. After all, your retirement could last for decades, so you will want to do all you can to ensure you will be able to afford the lifestyle you are aiming for.

Birmingham – Best Place to Live in UK

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Birmingham Retains Rank as UK’s Best Place to Live, Fourth Year In a Row.

Birmingham residents can celebrate again after the city won a coveted accolade for the fourth year running.

If you live in Birmingham you’ve got every reason to be smiling today. Birmingham was listed in Rough Guides Top Ten Cities to visit in 2015 late last year. Now, the UK’s second city has been recognised yet again for having the highest quality of life of any UK city outside the capital.

The city retained its number one spot in the global Mercer Quality of Living Report 2015 for a fourth year running. This has put Birmingham ahead of international hotspots such as Dubai, Miami, and Hong Kong.

Sir Albert Bore, Leader of Birmingham City Council, said: “With everything from shopping to culture, international sporting events to Michelin-starred restaurants on our doorstep, it’s little wonder that this report has confirmed Birmingham’s position as an outstanding place to live.”

2015 is looking set to be another golden year for Birmingham as the city builds upon its reputation as a tourism destination by welcoming the Rugby World Cup and Ashes cricket, new retail outlets like John Lewis and key cultural celebrations for the year ahead. Adding to this the Grand Central development at New Street that is well under way.

Figures were also recently released showing that Birmingham’s festive offering attracted record footfall and consumer spend in 2014 – with 5.5m visitors spending an all-time high of £397m across the city.

ONS figures have also revealed that the city was the leading choice for young professionals leaving the capital (London). In 2013 alone, 5,450 thirty-somethings moved into Birmingham looking for a better quality of life. Neil Rami, chief executive of Marketing Birmingham, explained that the city offers excellent facilities for young families.

“Recent Government statistics suggest that there are more people choosing to move to Birmingham than ever before. People are increasingly seeing our region as an obvious choice to build a career and raise a family,” he said.

“It offers all the cultural attractions of the capital but also provides excellent schools, affordable homes and amenities.”

Birmingham is to showcase at international real estate event MIPIM later this month in Cannes, in its campaign to attract the interest of global investors.

Birmingham’s popularity as a vibrant, young city still shows no sign of wavering as it remains the hot spot for young professionals who are being priced out of London.

Our clients are always telling us how much Birmingham has to offer and cite this as one of the reasons they choose to hold investments there, so we are thrilled and extremely proud that Birmingham is once again receiving the recognition it deserves.

Directors Visit to Kelham Island

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Our recent visit to Kelham Island was a real eye opener. I saw how quickly the area changed from our first meeting with the developer, to what it is now. Last time we had come the old building of where Kelham Works would be located was still in place. Coming back, it was strange to see it all knocked down. But that means works are officially in place to start rebuilding. At the time of our visit it was January, so it was a bit chilly, so we used that as a cheeky excuse to visit the local pubs before seeing the developer for our sit-down.

Earlier this year, the New York Times named Yorkshire as one of 52 places in the world to visit in 2014 and specifically recommended spending an evening in Kelham Island at the Fat Cat pub and the Kelham Island Tavern. So, that is exactly what we decided to do.

The first pub we went to was the Fat Cat, located just around the corner from Kelham Works. It’s a Victorian pub with a wood panel bar and walled garden, acclaimed for its real ales brewed on-site. We had a beer – the Pale Rider – which definitely hit the spot after our journey. It was a Wednesday, so not the busiest of days, but the atmosphere was unquestionably great.

Afterwards we wandered to The Kelham Island Tavern, again just around the corner. It is the only pub to have become the Campaign for Real Ale National Pub of the Year two years running. The staff was great, and the pub grub filling. We even got to say hi to “Pusscat”, The Kelham Island Tavern Ginger Cat who turned 10 this year.

We definitely felt a bit spoilt for choice when it came to pubs. After having a relaxing sit down and some food to fill our stomachs we moved onto some culture. It was approaching 3:30pm and we wanted to visit more of the neighbourhood before our long meeting.

We wondered to the Kelham Island Museum, which is another 5 minute walk from the pub. It focuses on the city’s history of steel manufacturing – one of which is Britain’s biggest surviving working steam engine. Many people probably didn’t know, but the museum actually stands on a man-made island – Kelham Island – which is over 900 years old. The museum told stories of light trades and skilled workmanship to mass production and what it was like to live and work in Sheffield during the Industrial Revolution. It’s definitely worth a visit with the family. We made our way around rather quickly as the museum was closing, but it ended up being perfect for us as we had to head off for our meeting anyway.

We met the developer of Kelham Works at The Grind Cafe, just a few minutes from the museum. It’s a new independently owned Café, which opened in 2010. We had heard it’s Sheffield’s new Hotspot on Kelham Island, so of course we had to check it out! We had our coffee along with some tasty Quiches and Salmon Fishcakes, yum!

We had a great catch-up and saw all the plans for Kelham Works. We couldn’t help but feel like this is truly something unique. Last time we met with him we had done a lot of research and had a strong feeling that this would be an amazing place to invest in. This time we were convinced. Having spent a day there ourselves and having seen such huge changes we knew it was an opportunity we just couldn’t miss out on. Especially as the city has already completed several regeneration projects in and around Kelham Island.

During our last visit we were wowed by the history of the area and the overall feel of Kelham. This time we could actually see the changes taking place. More young people were out and about, people were making their way back home or to one of the numerous pubs after work, a few more new developments had sprouted, and even the warehouse buildings overlooking the River Don had been converted into flats and offices.

It was easy to see why Kelham Island is called Sheffield’s only ‘Urban Village’. It’s full of artisan businesses and workshops. And during peak times the area fizzes with energy and creativity. We could completely understand why people have started calling it the ‘Soho’ or ‘Shoreditch’ of Sheffield. Young professionals and families live in the area and there is a true feeling of community. A feeling that ‘this is the place to be’ now in Sheffield.

Build Wealth & Invest in Real Estate

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In a traditional rental property situation, an investor buys a property and rents it out to tenants. The property might be a single family home, a student accommodation, a condominium apartment, or a multi-family residential property. In exchange for the right to occupy the property, the tenant pays the investor or the landlord a pre-determined amount of rent, typically on a monthly basis, for the duration of the rental period.

If done properly, the beauty of this arrangement is that the investor builds wealth from not just one, but from three distinct pillars.

Cash Flow

Cash flow is usually calculated by adding the rental income from all sources followed by subtracting the expenses and mortgage payments. If there is money left over at the end of the month after all expenses and mortgage payments have been made, the investor is in a positive cash flow situation. When the property isn’t producing enough income to cover all of the expenses including mortgage payments, the investor is in a negative cash flow position. Needless to say, investors aim to buy positive cash flowing properties or properties where cash flow can be increased in the near term. The benefits of owning a property with positive cash flow is that the investor can spend the money any way he or she chooses. That said, I know many investors who re-invest the extra money back into their properties by topping up their reserve funds or by performing renovations that increase the value of the property. It’s also important to know that when a market or home prices experience a downturn, the investment is buffered by the cash flow that is still coming in.

Principal Recapture

If you own a personal residence, you probably know that your mortgage payments include a principal portion and an interest portion. The principal portion is the amount of money that was borrowed and is still owed to the lender. One benefit of being a real estate investor is that the rental income collected from the tenant is used to pay down the mortgage, including the principal, month after month and year after year. That’s right, you own the property and someone else pays the mortgage! This is why it’s important to build relationships with tenants and treat them like clients!

Appreciation

There are two types of appreciation in real estate investing world. The first is called market appreciation and it occurs when a property increases in value over a period of time based on market forces. Of course, there are times when property values decrease or depreciates and investors need to be aware that it happens. That said, 2014 saw UK Real Estate investment volumes hit record highs of £65bn.

The second type is called forced appreciation and it happens when improvements have been made to the property. For example, updating a 1970’s era kitchen to today’s kitchen styles will help increase the overall value of the property.

These pillars are the three ways investors can win and build wealth with real estate. There are many investment opportunities out there, but these three pillars are why people invest in real estate.

Originally written by Tony Miller, a real estate agent in Ottawa, and modified for Aspen Woolf on 10/02/2015.

UK Pensions Boost in 2015

Posted on by Aspen Woolf UK

Interest in property investing from UK pension holders is set to see a sharp rise early in the year as market reforms begin, but many retirees are still not aware of their options or the tax implications.

Too many UK pension holders are not aware that they can invest in property at home and overseas, says a leading advisor.

Those that do, may not realise that they are likely to have to pay tax when transferring more than 25% of the total to their bank account.

As property purchases can take two or three months to complete, the real estate sector could see some benefit as soon as early 2015.

The option is now available for those who have saved into a pension scheme and reached age 55 as of April 2015, but the financial freedom for pension savers has a downside.

“For those people that have saved into a pension scheme and reached age 55 as of April 2015, then there will be the option to transfer the whole of the pension fund directly into your personal bank account. The sting in the tail is that tax will be due on part of the pension if you choose to transfer out.

“At present, it is possible to transfer 25% of your pension fund into your personal bank account without any tax and this benefit is set to remain. It is the other 75% upon which tax will be applied.

“Essentially, any transfer of the 75% element to your personal bank account will be taxed at your marginal rate. If you pay 20% tax as most people do then 20% of what you transfer out will be due to HMRC. This also means it is possible to slip into a higher rate of tax very easily by transferring too much out.

“What isn’t always immediately obvious to people is that by being patient and transferring the money into their personal bank account over a number of years could significantly reduce their tax liability.”

Partial transfers each year can help to reduce the tax the pension holder pays and the sum not transferred out can remain invested and grow in value tax-free.

Despite the downside, the changes will mean that millions of savers will have access to money that was previously locked away. “For some this will prove too much of an opportunity to miss out on and the tax due as a result of transferring out will have to be paid.”

But in Spring 2015, the global real estate market could see a big boost, says Mr Bertram. “Interest in property here in the UK and abroad is going to rise sharply in March and April as the dream of buying overseas becomes ever closer. Thanks to these changes, people will now have either a substantial deposit or possibly the opportunity to buy outright. The average pension fund in the UK is approaching £70,000 so someone earning £25,000 would be able to take roughly £50,000 after taxes. This will limit the locations in which they can buy property but they’re locations that didn’t exist before these changes.

“We have an obsession with property here in the UK. So many people have generated their own success stories from investing in property that you can only foresee a surge in buy to let investment. For some very clever investors choosing to transfer out in one swoop, they may even overcome the tax charges easily through better use of their money than if it remains in the pension fund. With the average property purchase taking around 10-12 weeks we could even see interest spark up right from the beginning of 2015!”

Even those who have not reached the age of 55 should start thinking about their options and seek expert advice.

“We find it concerning that so many financial advisors do not disclose all of the options available to potential investors, which include investing in property. Too many people still don’t even know that investing their pension in property is a possibility!”

There are some other strategies that investors can take to avoid tax. “If you run a business and you are a homeowner then you could release up to 75% of your pension tax-free. Another unknown is that if you have close family or friends then you could pool your pensions to give you greater buying power.”

Written by Adrian Bishop, Editor of OPP Connect for OPP Connect

How to Thrive in Your Interview

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As it is a New Year, it brings new starts. We have had a huge increase in our staff as our business is growing. And as a result have had interviews taking place almost every single day since opening again in 2015. We get a lot of new applicants and students interviewing and trying to get into the property business and because of this, thought it would be a good idea for our future generation to gain some vital information on interviewing. As we all know an interview is your chance to shine and makes or breaks your chance for that future job! Below are some great tips for anyone preparing themselves for an interview.

Currently, around 40% of graduates are still unemployed 6 months after their graduation. Which means that around 60% of students that have graduated from university have found employment within 6 months after graduating. However, this doesn’t mean that they are getting the jobs they are entitled too due to their higher education. Statistics from April to June 2013 states that 31 million people (men between 21 and 64, or women between 21 and 59) were unemployed. 12 million of these people held qualifications that were higher than A-level standard (Graduates). As the amount of competition for jobs is increasing, it is becoming vital that you understand and handle interviewing well to increase your chances of employment against your competitors. An example of this is that low cost recruitment companies like Hiring People place ads on hundreds of job boards and there could be hundreds of thousands of people applying for these positions, so you need to make every effort to make yourself standout from the crowd with both your CV and interview.

Hiring managers will assess you from the minute they meet you till the minute you leave, whether or not you are ready is down to you. Crucial to your first impression will be the attire you choose to wear. 70% of employers claim that they don’t want someone that is too ‘fashionable’ and a further 65% claim that clothes can be a deciding factor between two similar contenders. So for your interviews in the future, be sure to dress smart, and find the balance between fashionable and functional. Also, as a rule of thumb – avoid bright colors when dressing for your interview. Also, remember to wear something which is appropriate to the role at hand as what is expected will vary from a law firm to a small independent business.

Keep in mind, first impressions do last. When talking to your interviewer be sure to be polite, make sure you stay focused and express your interest in the position. It can deter you from being hired if you lose focus and come across as uninterested in the job you’re applying for. Whilst your appearance is key, so are your opinions; words and the way you execute them. Statistics show that 38% of hiring managers feel that first impressions can be determined from the quality of your voice, grammar and confidence. Make sure to project your voice and show confidence and belief in the words you are saying. If you answer their questions with little enthusiasm you may come across as not that interested.

We asked Rebecca Hersey the HR Coordinator for Tunbridge Well and Dartford law firm in Kent Thomson Snell and Passmore “What is the first and most important thing you look for in an interviewee?” and she said “We want to see a commitment to achieving high standards, whatever level you’re at, for yourself and for the firm. That’s very important to us – a lot of our reputation is founded on our high standards and client service. The legal market is changing rapidly; the successful lawyer in today’s market has a long term interest in the client and not just the shorter term ‘matter’ so we look for a broad perspective early on in someone’s career.“

Non-verbal communications can be a common hiccup for those of you who are less experienced in the interviewing scenario, with a startling number of 67% of people forgetting to make eye contact – a basic but vital sign of courtesy. Common mistakes like these can make those competing with you for a job superior to you. Non-verbal communications can be hard to master, as nerves set in it can become easy to fall victim to your habits such as fidgeting, which 33% of candidates do ‘too much’. One of the final things you might be judged on, but speaks volumes to certain people, will be your handshake. According to statistics 26% of candidates have a weak handshake. Although this isn’t a clear form of communication – it can leave a lasting impression on some people.

We also asked Rebecca “If you could offer one piece of advice to someone going into an interview, what would it be ?” to which she replied “Do your research. Know the company you are applying to and be able to say why you would like to join that particular company in the role you are applying for. “ This same advice applies very much to us as well. It is never a bad thing to stun your interviewer by what you know about the company and the field you decide to go down!

To recap; the most important things to bare in mind when you approach and go through the interview process are to wear sensible clothes, speak clearly and confidently – while simultaneously choosing grammatical ways to articulate yourself. Finally, remember the basics in your body language, smile, make eye contact and be polite, if you keep these basics in mind you are more likely to have a successful interview and are less likely to fall victim to mistakes that are common from candidates.