Off-Plan Property Investment

Welcome to the Alibek Issaev property blog. Alibek Issaev has decades of experience in the residential and commercial property invetment industry. In todays post we talk about off-plan property investment. Find out how off-plan property investment gives investors the chance to enjoy a host of benefits, from reduced prices to increased quality.

Off-plan property investment has become a popular option for investors looking to access opportunities in the UK real estate market. In fact, there are buyers who choose to go off plan when looking for a house or flat that will be their primary residency.

The growth of the off-plan property investment market is multi-faceted. For one, the onset of the global financial crisis in 2008 led to many banks and traditional lenders becoming increasingly reticent when deciding whom to loan money to – a trend that has impacted consumers and businesses alike, including construction and development firms. Consequently, at a time when there is a notable need for more properties to be built across the UK, there has been a rise in the number of “investor-funded” or “buyerfunded” developments, where individual or institutional investors take the place of the banks to help in the provision of capital for the completion of a real estate project. And a vast number of investors have been eager to do so.

SUCCEEDING WHEN GOING OFF-PLAN

Increasingly common and established as a popular asset class, off-plan property investment is a part of many people’s financial plans, both in the UK and internationally. But what are the necessary steps to take before making an off-plan property investment? And how can investors find the right opportunity for them?

Alibek Issaev shares these critical questions in Your Guide to Off-Plan Property Investment.

Establishing your goals Before making any investment, property or otherwise, an investor must be clear what their aims are. Do they want to make regular monthly returns or long-term capital growth? Do they want to put their money somewhere it can slowly acquire interest or are they looking to diversify their portfolio?

Choosing the right type of property With the goal – or goals – established, an investor should be clear on the type of real estate asset they are seeking. From a hotel or care home to student accommodation or residential flats, off-plan investments cover virtually every type of property; how appropriate an asset type is will depend on what the investor is looking to achieve. It is important an investor carries out thorough research if he or she is investing in a type of property they have not previously invested in.

Deciding where to buy Location, location, location – regardless of the type of property that one is investing in, its location is of significant importance. When it comes to expected rental yields, ability to find occupants, predicted capital growth and potential ease of resale, the precise location of a property will be vital.

Conducting due diligence on the developers as well as narrowing down the asset type and location of a potential off-plan investment, investors must be careful in choosing which developers they wish to work with.

Typically an investment provider or a sales agent will be responsible for structuring the deal, but investors should conduct due diligence on the firm that is managing and developing the project itself. This process often involves seeing previous projects, including both the plans and the final product, to make sure the business has a proven track record of bringing their designs to fruition. Indeed, looking through the developer’s past portfolio will offer a strong indication of the quality of their builds and offer assurance that the upfront investment will result in a great property. Some firms will allow for investors to visit current construction sites, while it is also common for show homes or flats to be available for investors to visit.

Getting guarantees on the quality of the build If you are buying off-plan on the assumption that the property is going to be of a very high standard – which will, of course, be reflected in the price you pay – then it is vital the finished product meets those standards.

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Property Investment In A Post-Brexit World

Welcome to the Alibek Issaev property blog. Alibek Issaev is a businessman focused on value-added, targeting opportunistic real estate investments. In this week’s blog we focused about property investment in a post-brexit world. Read on to find out more..

On 23rd June 2016, the UK public voted – albeit by a narrow margin – in favour of leaving the European Union (EU). It was one of the most significant moments in recent British history, and during the two-and-ahalf years since the referendum, the topic of Brexit has never strayed far from the media spotlight. Exactly what impact the UK’s departure from the EU will have on the property market, and how investors can best plan for the future amidst the uncertainty it has caused, both remain topics of great importance.

These unanswered questions have been a source of uncertainty for people not only in Britain but internationally. Businesses, consumers and investors alike have been naturally hesitant in making major decisions, conscious of how economic landscapes and financial markets will change post-Brexit.

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The survey of more than 500 UK-based real estate investors (all of whom own two or more investment properties) found that 39% plan to increase the size of their portfolio over the coming 12 months, compared to just 11% who intend to reduce theirs. Of the others, 25% do not intend to buy or sell any property in 2019, while 15% will be selling some assets to reinvest in new properties.

With 54% of investors looking to buy a property over the year ahead, and 89% either maintaining or growing the size of their portfolios in the next 12 months, the appetite for bricks and mortar investment evidently remains strong. Nevertheless, set against the backdrop of on-going Brexit discussions and the eventual realisation of this very public divorce, property investors must keep a keen eye on how these events will impact their financial decisions. Specifically, investors have to cogitate about how they can successfully navigate the real estate market in a post Brexit world.

To that end, calling on its years of experience and unique insight into pertinent industry trends, we have created a list of five of the most important factors to consider for post-Brexit property investment.

1. Consider all the assets available. Investors should avoid viewing property investment as a black and white decision between residential and commercial real estate. While these two umbrella categories incorporate the overwhelming majority of properties available on the market, there is also a growing demand for non-traditional property investments. Importantly, keeping an open mind to different categories of real estate will ensure an investor is well positioned to source the best and most appropriate asset for their particular goals, whether that is a regular source of rental income or long-term capital gains.

2. Look to regions of high investment Along with an open-minded approach to different asset classes and how to invest in them, an investor must also identify the right locations for his or her post-Brexit property purchases. Establishing the towns, cities or counties that have experienced the highest growth in property prices is relatively straightforward given the wealth of historical data available. And while the UK market as a whole has delivered very strong returns in this regard for many years – average house prices rose by more than £60,000 between 2008 and 2018 – some markets are growing at a far quicker rate than others.

3.Think about the medium to long-term plan As with any investment, when navigating the post-Brexit property market investors must be clear on their medium- and longterm plan, including how they will exit the investment. Having a clear plan that accounts for various market fluctuations and also provides multiple means of achieving financial returns will be of particular importance when investing soon after Brexit; a period when it will be hard to predict for certain how the industry will react to the challenges leaving the EU presents.

4.Choose the right partners to work with Brexit uncertainty does not just impact investors and their decisions – for better or worse, most businesses will also feel some effect of the UK’s decision to leave the EU. It is, therefore, important that investors choose the right businesses and partners to work with. This includes mortgage providers, estate agents, construction firms, developers and solicitors. Investors must select service providers that have the confidence and assurance to deliver what is expected of them irrespective of Brexit.

5. Do not abandon the basics Due diligence in finding the right asset, the right location and the right partners is essential; however, for all of the factors outlined in this report that ought to be considered, it is equally important for property investors not to lose sight of the basics. Whatever rumours or predictions surface in the media regarding the impact Brexit could have on the UK’s property sector, the fundamentals that govern this market are unlikely to alter dramatically. Namely, returns will be shaped by the balance between supply and demand along with the relative attractiveness of a particular property or location.

Alibek Issaev is a highly successful businessman and property developer. He has appeared on news as well as being featured in several newspapers. Read more about Alibek Issaev here and discover Alibek Issaev’s high yielding property news, insights and knowledge across all things UK property here. More from Alibek Issaev property investment options  here.

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UK Real Estate News

Alibek Issaev on London Mortgage Market Aiding Middle East Commercial Property Investors

Welcome to the Alibek Issaev blog. Alibek Issaev is a leader in real estate services, powered by his entrepreneurial spirit. Today, we share about how UK property lending market is still largely stable as a result of pressure on interest cover ratios (ICRs) and debt yields.

According to report, the UK property lending market is largely stable despite the Bank of England’s decision to raise interest rates, from 0.5% to 0.75%, for only the second time in a decade, lending market stability is leading to some lenders offering lower leverage to borrowers when they refinance, ultimately creating opportunities for Middle East investors.

The research from the CASS Lending Survey notes that 73% of all outstanding debt is due for repayment in the next five years, with loan maturities set to peak in 2020 due to the large volume of loans drawn in 2015. This could cause some borrowers to seek alternative sources of finance, especially if values soften in the interim. With yields already low it will be challenging to replicate existing levels of leverage if sustainable ICRs are to be maintained. This will inevitably lead to lower loan to values (LTVs) which could prompt some stress at the point of refinancing.

While many banks either can’t or won’t increase LTVs due to regulatory restrictions and prudence, ‘alternative lenders’ could be attracted to such borrowers as they look to offer increased leverage at higher margins, although much will depend on the track record of the borrower. The next three to four years could therefore offer tremendous opportunities for alternative lenders and will further hasten the move of property debt from traditional banks to the alternative sector has identified approximately 100 lenders. In 2008 it says that the alternative sector accounted for circa 5.0% of lending – by 2017 this had increased to 25%, and this is deemed a conservative estimate.

Whilst, new origination levels were broadly stable in 2017 at £44.5 billion. 51% of total origination was refinancing and 49% was new acquisitions, indicating that lenders are replacing their maturing loans with new lending but not expanding significantly. In 2017, non-bank lenders increased origination by 21% in value terms compared to only 3% by UK banks. However, origination activity dropped 34% amongst foreign banks (excluding German and North American institutions), largely due to increased competition and a scarcity of large core transactions.

Alibek Issaev is an extremely successful property investor. He helps guide people towards building a large and strong investment property. Learn more about Alibek Issaev online here. Connect with Alibek Issaev on Facebook for more tips on things like increasing your rental income, how to finance your property and interest rate updates. Follow Alibek Issaev on Crunchbase page here.

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U.A.E. (Dubai) Real Estate News

Welcome to the Alibek Issaev blog. Alibek Issaev is a value oriented real estate investor. Today, we share why Middle East hotels’ performance dips and how Africa hotels uptick. Read on to find out more about the statistics.

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According to STR, hotels in the Middle East reported negative 2017 performance results, while hotels in Africa posted growth across the three key performance metrics. STR reports the following data for the Middle East, Africa and Kuwait comparing the full calendar year 2017 to prior year 2016.

Middle East

  • Occupancy: -1.1% to 65.0%
  • Average daily rate (ADR): -4.5% to US$164.33
  • Revenue per available room (RevPAR): -5.6% to US$106.89

Africa

  • Occupancy: +5.6% to 58.0%
  • Average daily rate (ADR): +7.4% to US$104.15
  • Revenue per available room (RevPAR): +13.4% to US$60.43

Check back soon for more Dubai property news.

Alibek Issaev is a business man in Dubai who’s building a better tomorrow for his clients, people and the community. Learn more about Alibek Issaev online here. Connect with Alibek Issaev on Facebook for more tips on things like increasing your rental income, how to finance your property and interest rate updates. Read Alibek Issaev on the Emirates page here.

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Putting Momentum Back Into The U.K Property Market



Alibek Issaev talks about UK Property Market

There are tentative signs of market recovery despite year-on-year house price falls in the capital.

The new data shows that the average asking price had nudged up slightly by 1.1 per cent (or £6,694) from March this year to April across Greater London — the biggest month-on-month uplift seen at this time of year since 2015.  Recent research shows that the postcode of W1T — Marylebone, Fitzrovia and Soho — has seen the largest increase in demand with transactions up a staggering 315 per cent between 2017 and 2018, albeit from a very low base. 

Large family houses see biggest drop in asking prices.

The average asking price for large family homes in London has fallen nearly eight per cent to £1,331,227 over the last 12 months. The stamp duty burden, combined with prolonged Brexit uncertainty as the new deadline to leave the EU is pushed to the autumn, has quashed activity at the top of the mainstream housing market. 

Advertised values were also down in the first-time buyer sector too by 2.5 per cent from April 2018 to April 2019.

Check back soon for more property news.

Alibek Issaev specialises in Tech investments. He is founder of Dudu and other apps.
Find out more about Alibek Issaev here. Connect with Alibek Issaev on Crunchbase and follow the official Alibek Issaev Facebook page here for more UK property news.



Top things you need to know

Alibek Issaev Shares Motivational Messages To Inspire Anyone

Successful people don’t become that way overnight. What most people see at a glance—happiness, wealth, a great career, purpose—is the result of hard work and hustle over time.

To be successful, you have to use each day as an opportunity to improve, to be better, to get a little bit closer to your goals. It might sound like a lot of work—and with a busy schedule, next to impossible. But the best part is, the more you accomplish, the more you’ll want to do, the higher you’ll want to reach. So as long as you have the hunger for success, you will always have the power within you to achieve it.

Use your ambition, drive and desire—along with these 10 inspiring motivational quotes—to make it happen.

  1. Netflix posted its biggest quarter ever for paid subscriber growth, adding 9.6 million net paid subscribers globally. But the company’s guidance for subscriber growth was weaker for the second quarter than Wall Street expected, sending the stock sliding.
  2. Apple and Qualcomm settled their patent dispute, sending Qualcomm’s share price up. The pair have agreed to drop all litigation, and Apple will buy Qualcomm chips for the iPhone again.
  3. Chipmaker Intel said on Tuesday that it is exiting the 5G modem business, effectively ceding the market for smartphones on the eve of what’s expected to be the biggest wireless market technology transition in years. When it comes to the smartphone modem business, CEO Bob Swan said in a statement, “it has become apparent that there is no clear path to profitability and positive returns.”
  4. Facebook CEO Mark Zuckerberg used his firm’s huge trove of user data as a bargaining chip, to control competitors and maintain the social network’s dominant position, according to documents seen by NBC News. The documents reportedly show that Facebook favoured certain partners, Amazon, with access to data over others.
  5. Google has blocked access to the hugely popular video app TikTok in India to comply with a state court’s directive to prohibit its downloads. The move comes hours after a court in southern Tamil Nadu state refused a request by China’s Bytedance Technology to suspend a ban on its TikTok app, putting the app’s future in one of its key markets in doubt.
  6. Uber has launched a feature for female drivers in Saudi Arabia which means they can block men from hailing their cab. The feature, which became active in April this year, is called “Women Preferred View,” and selects nearby passengers based on their gender.
  7. Chinese tech billionaire Jack Ma says it’s a ‘blessing’ for his staff to be working gruelling 12-hour shifts, 6 days a week.The Alibaba founder came out in support of China’s tough working hours in a speech to employees on Thursday.
  8. Jack Dorsey says Twitter makes it ‘super easy’ to harass and abuse others, and addressing the problem is his biggest worry. The Twitter CEO spoke about harassment and misinformation on his platform at TED 2019 on Wednesday.
  9. Amazon is plagued by fake product reviews, according to a report by UK consumer group Which?. Which? looked at hundreds of tech products across 14 different categories, and many had five-star ratings from unverified reviewers.
  10. Uber CEO Dara Khosrowshahi has a huge potential payout riding on Uber’s IPO valuation hitting $120 billion and staying there for 90 consecutive days. His incentive is worth $100 million or more, a source told Business Insider.

Alibek Issaev is a business start-up investor  focused on tech companies who are disruptive. He believes that tech firms, creating apps, websites, online tools etc are the future. Find out more about Alibek Issaev here. Join Alibek Issaev on Crunchbase here and follow the official Alibek Issaev Facebook page for more inspirational quotes you can pick you and inspire you to even greater heights.

Britons turn more cautious about big spending as Brexit nears

 British households were the most downbeat about their finances in over a year this month and the approach of Brexit made them more cautious about making major outlays, a survey published on Monday showed. Household Finance Index slipped slightly to 43.3, its lowest since February 2018, adding to a series of falls since August last year.

Respondents said they said they were a bit less worried about their job security and about the outlook for their financial wellbeing.

The lowest unemployment rate since 1975, rising wages and weak inflation are helping to offset the uncertainty about Brexit for many people in Britain.

But the appetite among households for making major purchases, for example on cars or holidays, fell at the fastest pace since September 2017 and similarly, many companies are cutting back on investment.

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