Homesgofast.com round-up of the latest and most important property investment news this week includes how the Chinese are investing in Manchester UK, how Hong Kong investment properties may dwindle, the best UK cities for investment in 2017 and how real estate crowdfunding could be the next big thing.
Chinese Investors Flock to Manchester UK
The Telegraph journalist Isabelle Fraser reports on the fact Chinese inquiries into Manchester property have jumped by more than 50pc as enthusiasm for the Northern Powerhouse continues to grow.
Juwai.com, an online property portal for Chinese buyers looking to invest in property abroad, said that in November, the number of Chinese inquiries into Manchester property was 53.8pc higher than the same month last year.
This came as Manchester Airport Group has doubled its estimate of the value to the local economy of direct flights from Beijing to Manchester, as Chinese investment in the Northern Powerhouse continues to increase.
Rhys Whalley, executive director of Manchester-China Forum said that he was “cautiously optimistic for outlook at 2017”, and the devaluation of the pound had devaluation of the pound meant “a number of investors see the UK as an excellent option”.
More at Telegraph
Sales of Hong Kong investment property expected to fall as Beijing tightens controls
Reports from The South China Morning Post suggest that Sales of top quality commercial buildings costing multi-billions of Hong Kong dollars are expected to fall this year as Beijing’s tightened capital controls could stall mainland corporates acquiring overseas assets.
The latest policy will reduce the number of deep-pocketed mainland enterprises making property purchases in Hong Kong, which has emerged as a favoured investment destination.
Alva To Yu-hung, senior managing director of Hong Kong at DTZ Cushman & Wakefield, said the policy could deal a blow to the investment property market.
“Mega deals involving more than HK$10 billion will definitely slow down. State-owned enterprises will be most affected by the policy as they need to seek approval from mainland authorities before sending the money out to Hong Kong,” he said.
To said many purchase decisions would be deferred indefinitely until a change of policy.
Best UK Cities for Investment Revealed
With the Pound at an all time low overseas property investors are looking at the UK as a great place to invest money. Property in the UK has traditionally been a good place to invest but where in the UK do international buyers need to consider?
One city that most experts flagged is Manchester. The city is enjoying an enormous amount of investment as the crown jewel of the ‘Northern Powerhouse’, and that is only going to boost demand for property in the city, whether for purchase or rent.
Jonathan Stephens, managing director of property consultancy Surrenden Invest, said that savvy investors should consider taking advantage of Manchester’s “buoyant” rental market.
Property prices in Leeds have jumped more than 6% over the past year but, with an average house price of around £150,000, it still represents good value.
Graham Davidson, managing director of Sequre Property Investment, explained that as the government implements phase two of the HS2 rail project, Leeds will become an even bigger attraction for investors.
Rob Bence, co-founder of The Property Hub, a global community of property investors, and presenter of The Property Podcast, believes Hull is a city to watch for buy-to-let investors.
Bence said: “My wildcard for 2017 is Hull. Yields are already fantastic, and with Hull gaining Capital of Culture status, plus the recent investment into the city, I expect to see property investors paying more attention to Hull.”
According to Frazer Fearnhead, founder and chief executive of property crowdfunding platform The House Crowd, Stockport should be at the top of the list for any property investor.
He pointed out that it enjoys direct rail services to Manchester, Liverpool, Birmingham and London, and is set to see significant investment.
If you really want to get ahead of the pack, then you need to look beyond the perceived ‘safe options’, according to Dale Hornidge from property management firm No Agent.More at Home.BT.com
Real estate crowdfunding the next big thing
Crowdfunding Insider reveals that real estate crowdfunding may possess the biggest potential within the sector of online investment marketplaces. The ability to make a popular asset class more accessible to a wider audience simply makes sense. Both debt and equity investment opportunities in real estate are available across multiple platforms but some of the early entrants have struggled while others have thrived.
Inman, in their 2017 Real Estate Industry Outlook, says there is solid optimism for 2017. The majority of their survey respondents expect the incoming Trump administration to have a positive effect on the US housing market. Of course, if the economy holds, commercial real estate should do well too. Rising interest rates will certainly play a role that could temper growth but many industry participants are positive about the coming year. This holds true even more in vibrant metropolitan markets like New York. Where everyone agrees is the fact that emerging technology will play an increasingly important role for investors, developers and sellers.
More at CrowdFundingInsider.com
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