Why Diversify Your Real Estate Portfolio?

We have all heard the saying “Don’t put all your eggs in one basket”. Sage advice! The same applies to your investments including real estate.

When you diversify your portfolio, you reduce the risk of losses by spreading your wealth across different regions, cities, and countries and even different property types. This way you hedge against a major downturn in one particular market.

Even though the global real estate market is closely linked, there will always be times when one market does not experience a massive downturn as much as another. This is when you avoid experiencing huge losses and will benefit from diversification.

There are several ways to diversify your real estate portfolio to protect your investment two of which we have listed below:

1. Geographical location – This is where your invest in different cities, regions, and countries. Obviously, markets within a country are more closely correlated and diversifying by investing in different countries is a better hedging strategy.

2. Asset classes – You can invest in residential or commercial real estate. Within these categories, there are subcategories such as apartment buildings, single units, student housing, small shops, large commercial complexes and more.

Where and how to diversify will depend on your budget and investment strategy. Our team at Downtown International has over several decades of experience in the international property market and we can advise you on where to invest next. We are always happy to help.

Posted by: Behrang Jalali, Mon, Sep 4th 2023

GCC Investors Looking to UK Cities to Diversify their Portfolio

 According to the Bank of London and The Middle East (BLME), GCC investments into the UK property market is expected to reach GBP 2.5bn.

The UK housing market is experiencing a difficult time at the moment with high interest rates dampening demand and leading to a fall in prices. This has made UK real estate more attractive to those investors looking for a bargain. London has always been on the list of GCC investors but according to BLME, these investors want to diversify their portfolios and are looking for opportunities outside of the capital.

One asset class which is high on the list for GCC investors is purpose-built properties such as student housing in such cities such as Manchester, Liverpool and Birmingham.

If you are looking to purchase a property in London or other major cities in the UK, our team of experienced advisers can help you find the investment that is right for you. Please do not hesitate to contact us with any questions. We are happy to help.

Posted by: Behrang Jalali, Mon, Aug 28th 2023

Luxury home prices more resilient during times of high interest rates.

Luxury home sales in London outperformed the rest of the UK property market according to a report by Knight Frank.

Prices in some areas of London only fell by 0.2% in July compared to last year with prices in PCL dropping by 0.9% whereas nationwide prices fell by a lot more.

According to a report by Savills, 70% of PCL properties sold this year have been to cash buyers. These buyers have not been affected by the rise in mortgage rates which may be the reason for the resilience and rise in the number of transactions in luxury properties. According to Knight Frank, sales of these properties were up 13% in July over a 5 year average compared to a fall of 5% over the same period nationwide.

Posted by: Behrang Jalali, Mon, Aug 21st 2023

Interested in Buying a property in the UK. Here are the steps you need to follow:

Budget: Find out how much you can afford. If you want to get a mortgage, contact a mortgage broker to find out how much you can borrow based on your financial circumstances. Please contact us and we can put you in touch with the right mortgage broker.

Research the area: The old adage holds true. Location, location, location. There are various factors to consider such as safety, education, transport links, upside potential, etc. We are here to help make this process easier for you.

Arrange for a viewing: Whether it’s an off plan or ready property, we advise that you take the time to view the property or site if possible. Many developers that we work with have a marketing suite with a model showroom that shows what the finished property will be like.

Make an offer: Once you have decided that the property is right for your needs (investment property or family home) the next step is to make an offer. It is advisable to do this with the help of your preferred agent as they would have many years of experience in dealing with sellers and developers.

Hire a solicitor: It is imperative that you hire a good and reliable solicitor to take care of searches, check the contracts and deal with the appropriate government agencies such as the land registry. They can also advise on how to structure your purchase if you are the sole purchaser, a partner or through your company. We have very long-standing relationships with many prominent and international solicitors who can assist you.

Exchange contracts: This happens when you instruct your solicitor to hand over signed contracts to the seller and receive the same back. There are a few things that need to be prepared prior to this which your solicitor will advise you on.

The above is just a brief summary of the process of purchasing a home in the UK. In actuality, it is more complicated. At Downtown International, we can walk you through the process, assist in your property search and advise you on the best locations based on your budget and other criteria. We can also introduce you to the best solicitors and mortgage brokers to help you take the next steps once you have identified the right property.

Please contact us today for a consultation: +44 7495 071113

Posted by: Behrang Jalali, Sun, Aug 6th 2023

Positive signs for UK housing market

Britain’s housing market is expected to avoid a decline as many have predicted.

UK inflation has dropped more than expected which means that the financial markets are no longer expecting the Bank of England to raise the rates as sharply as they have been. Barret Kupelian, the chief economist at PwC UK, said a fall in the consumer prices index (CPI) in June was likely to persuade the Bank of England to moderate further increases in the cost of borrowing.

He added “This effect, coupled with possible real wage growth, could mean the housing market could be in a considerably different place in six months’ time, with a bounce back possibly in sight.”

Posted by: Behrang Jalali, Tue, Aug 1st 2023