Investment in Birmingham property is increasing

Birmingham has become a very attractive city for homebuyers and investors. 2015 was a year of huge investments in both private and commercial property. It was especially a record year for the latter with almost double the five-year average in commercial property investment, a total amount of £845 million in transactions.

Investments in offices are the most popular. A 76% of all commercial investments last year was in offices, reaching a figure of £641 million from 25 different deals. This was a 2% higher than 2014’s total amount of £626 million, says CoStar Group.

However, there was a decrease of a 5% in investments in real estate, with a total amount of £67.5 billion, still it has been a very strong year, with a 46% above the average of the last ten years. In there was a record of £70.7 billion.

Some of the most significant acquisitions in Birmingham city centre in 2015 were Colmore Plaza for £138.3 million by the firm Ashby Capital and 1 Colmore Square, purchased for £87.3 million by Legal & General.

In the last few years, banks have been more interested in Birmingham. Two big players, as Deutsche Bank and HSBC have been the first ones to move some of their operations from London to Birmingham. Deutsche Bank moved office functions and HSBC intends to do the same with its retail operations.

Property analysts at CoStar claim that Birmingham has become an attraction for both national and international investors because of the regeneration of its infrastructures and due to the fact that it is Britain’s second largest city and one the most powerful economic engines in the country.

Birmingham has drawn more and more attention thanks to projects such as the refurbishment of New Street station, the tram line extension and the plan to build the HSC railway link to London soon. Also, the expense of capital has made investors look for other cities.

Not only Birmingham has had a rise in the investment in commercial property, the whole region of West Midlands increased a 6% the amount of money invested in 2015, a total figure of £2.66 billion.

The consultancy Lambert Smith Hampton, that produces the UK Investment Transactions report, said that in the West Midlands the office sector reached an investment of £822 million, a 31%, whereas the retail sector only got almost 28% with £744 million of transactions.

Below these two sectors are the industrial transactions with a 17%, a figure of £453 million. The transactions in other sectors were worth £645.

There is no doubt that 2015 was a record year with a 54% more in investments than the five-year average and 49 per cent above the region's ten-year average. We would like to highlight the sale of the NEC for £307 million to LDC as one of the most important transactions in the region.

A guide to Birmingham city centre hot spots to live

With a population of over one million people and many residential areas, Englands’s second city, Birmingham is getting more and more popular as a place to live and work. If you are planning to move here, it is advisable to check this list of hot residential areas our estate agents in Birmingham City Centre have created.

The Mailbox

The Mailbox is Birmingham’s most stylish destination, where you can enjoy high fashion shops and fine restaurants, such as Côte Brasserie, Miller & Carter, Harvey Nichols and Aluna. You can see it in this video:

In this quarter you can also find The Cube, an iconic building with highly desired studios and one and two bedroom apartments with stunning views and automated car park.

Digbeth

At a short walk from the Bull Right and New Street, it is Digbeth, well-known for being the creative quarter of the city. It is vibrant place to live as there are many cultural activities around this quarter and there is a growing and multicultural population, being the home of the Irish community and large Chinese and Polish populations. . It also has a residents association which organizes events and works with local businesess which makes Digbeth a real community.

Formerly an industrial area, nowadays many of the new developments are apartments converted from old warehouses. At its heart you can find the Custard Factory, converted into a shopping and business centre. Next to the industrial buildings you can find a large green space, the Eastside City Park. To know more about Digbeth, visit the blog Digbeth is good.

Jewellery Quarter

Jewellery Quarter is a historic area of Birmingham, with over 200 listed buildings. It might be your option if you are looking for 18th and 19th-century terraces and houses, although there are also plenty of apartments in converted factories. It has growing residential population and an expanding business community.

This quarter is famous for having over 100 jewellery retailers. There are also a number of fine restaurants, pubs and galleries. If you wish to become a new resident, you should know that it exists the Jewellery Quarter Neighbourhood Forum (JQNF), who is the voice of the residents and work together to make the Quarter a better place to live.

Moseley

Moseley has a bohemian spirit. It has recently been named as one of the best places to live in the UK by the Sunday Times because of its “village community”. It is full of pubs, like the well-known The Prince of Wales, and parks, being the most important Cannon Hill, with Victorian landscaping, Grade II-listed bandstand, a series of ponds and the Midlands Art Centre (MAC).

Moseley has also an important monthly farmers’ market and very good connections with the city centre. 

Ready to move to the city centre? Leave us a comment!

A guide to become a landlord

Being a landlord is really easy if you can afford to buy to let another property. In this article we will learn the advantages of being a landlord and how to do it to get the maximum benefit.

The advantages of being a landlord

If you have a good property to let and an efficient managing agent, you work is practically done. Even if you are a landlord with several properties to let, the time you may dedicate to this will be quite limited while your earnings will be considerable.

Some landlords expand their number of properties by refinancing one of them that has risen in value. That way they get financing to purchase a new property. Now, you might be wondering: how do I start?

Research properties

First of all you should know what is more important for you: yield and growth. Yield is the difference between the rent and the costs, and the capital growth is the increase in value of your property over time.

So, if you choose a property in Birmingham city centre you can hope that prices will be rising, which is a common strategy for some, although the yield will be tiny. On the other hand, if you choose a property in the south of West Midlands it won’t offer you so much capital growth, but it will potentially give you large yield.

Ideally, you should look for a location that provides you with both yield and capital growth, as the latter is important to be able to increase your property portfolio. But, which locations can give you both? The right answer is commuter towns. They are always demanded by professionals, who are usually the best tenants.

Tips before purchasing a property

Usually, there is no much room for negotiation in the market, although if you find a great deal, go for it. Before buying a property, you need to be careful. It is easy to be seduced by the amazing return of investment that many estate agents in Birmingham promise when they try to sell you a brand new flat. Their figures tend to be at best optimistic and at worst unrealistic, just a lie.

What to do then? Don’t listen only to the developer or the estate agent. Speaking to different local estate agents and do some research online on websites such as Rightmove and Zoopla to check sale and rental prices.

Ask for legal advice

Lettings legislation changes very often. That is why it is so important to receive the right legal advice. Make sure that your estate agent belongs to ARLA, because as member they will have the necessary acumen to guide you through. Also, ARLA guarantee money protection for clients. If you follow these tips and buy wisely, you will be able to continue investing and set your future up.

Midlands home buyers will benefit from Help to Buy ISAs

A new scheme has been recently launched to help first time buyers. It is a tax free top up that, according to TotallyMoney.com, will aid more people in the centre and north of the country than southerners. The reason is the lower price of houses here compared to those in the South-east.

To access, aspiring buyers should save between £1,600 and £12,000 in a five-year ISA. From 2020, the Government will top it up with an additional 25% (which means £50 tax free for every £200 put away each month, or £1 for every £4 the future homebuyer gets to save.

Single people making the maximum contributions will have £15,000 to put towards a deposit in around five years’ time. A couple saving to buy together will have the total amount of £30,000.

Here is a map showing areas where single buyers could afford (in blue) to buy a house in 2020, and where they couldn’t (in grey).

However based on prediction of house prices, single people using the ISA won’t be able to purchase anything between Cambridgeshire and Dorset in five years’ time. In London the situation will be much worse, with the only properties under £450,000 in 2020 set to be in Zones 4, 5 and 6.

The trend in Birmingham city centre will be more positive for home buyers, as TotallyMoney.com predicts that the average cost of a flat will be £122,600.

According to this, the new ISA would help a single buyer to save enough money to have a deposit of over 12% and a couple saving together would put down a deposit of nearly 25%.

In this map you can see areas where couples could afford (in blue) to buy a home in 2020, and where they couldn’t (in grey).

The conclusion is that despite George Osborne’s initiative, there is much more to be done in order to help first-time buyers.

Is Christmas a good time to sell my home?

Whilst some estate agents in UK don’t recommend to sell a house in Christmas, we think that start selling in this time of the year can also have some advantages. In this article we evaluate the pros and cons of marketing a house in Christmas.

Start selling your home before Christmas

As experienced estate agents that is our advice. Why? Because, as you know, many people, including potential buyers might be away during this time. This is of course, one of the main disadvantages of Christmas and because of that it is better to start marketing your property a few weeks before. Also, agents need some time to take professional photos of your property and make other preparations to market it.

More exposure

In Christmas everyone’s mind is on presents and parties. Well, this can be true for many people, but certainly not for everyone. In spite of the fact of many people being occupied with presents and enjoying holidays away, a lot of other people stay at home and use their holidays to start searching homes on the internet.

Rightmove and Zoopla receive a lot of traffic from Boxing Day onwards and especially in the beginning of the month of January, so make sure to find online estate agents who market your home in those websites and many others to get the maximum exposure.

Get ahead your competition

Another great benefit of marketing your property in December is that there are far less new properties to the market that during the following months. Your property might be the only one of its type on the market in Christmas. In spring, as there are many more properties available, buyers have more options and get more distracted and you property might attract less interest.

If you get your property on the market in December, it will be available before many others and will be seen first.

So, if you are planning on selling your property this winter, don’t waste more time.

5 steps to make moving a lot easier

You have made the decision of moving to another home, so it’s time to plan how to do it. No matter if it’s your first time or your 9th time, it’s usually a difficult process. These tips can help you smooth the path.

Start cleaning and de-cluttering your place

This serves two purposes: first, you will leave your house ready for new buyers or tenants and second, all your stuff will be organized for the day you move. A deep cleaning is essential to make a good impression to potential buyers/tenants. Also, it is the moment to get rid of clothes and other things you no longer use (you can donate them, sell them or bin them). An aired and tidy house is more inviting and also, it will help you later, when you start packing your belongings.

Keep your daily essentials apart

It is recommendable to save in a plastic box all the items you use every day (some kitchen utilities and devices) and pack a bag for each member of the family. This will allow you to access to these items easily during and after the move.

Buy good boxes

Acquiring good quality boxes is an investment. You can use them more times, fold them down or use them to keep your home tidy. You don’t even need to spend money on the boxes, you can get them for free from shops as long as you know they are strong and not too big, so they resist and be easy to move once they are full.

Classify and label your boxes

Now that you have your boxes, it’s time to fill them. You might start creating a list and put your items into groups. Get also a pack of parcel labels with different colour and sizes and label every box with the room and main contents. It’s also a good idea to label your chargers and cables because it will easy to remember what goes with which device. Don’t forget to label items that will be donated to charity, binned or sold.

Pack your clothes in a more efficient way

You will save a lot of time by packing all of your clothes on their hangers and placing a tie top bin bag over the bottom. Then, you can tie the tops around the hangers and as soon as you arrive your new home you will be able to hang your clothes.

Pack your clothes in a more efficient way

You can hire a company to move your belongings or you can ask your family and friends. If you choose the second option, you could offer them some reward, such as a takeaway when you finish and you will get more volunteers.

Ready to move? Our estate agents in Birmingham can help you find your perfect home.