United Kingdom , Manchester , Ancoats

OXYGEN – INVESTMENT OVERVIEW

Key Points of the Investment

• Projected 6% rental yield, expected to grow 3% every year
• 3% annual capital growth
• Cost of Finance well below the projected Yields.
• Invest from 342,000 GBP
• Key Location and Manchester Fundamentals.
• UK Fundamentals of undersupply and huge Population increase by 2031

Why Manchester?

Manchester has seen unprecedented growth and the good news is it doesn’t look like cooling down anytime soon. Some of the key factors are

• Huge economic boom in Manchester driven by government and private investment
• Higher business creation than London, housing 80 out of FTSE100 companies
• Population growth 3x higher than UK average
• 85% of city centre residents are renting
• Forecasted to face 28% capital growth over next 4 years – 15% higher than UK average.

The UK fundamentals are also very strong with the population set to rise by 10% by 2031 and there is already a huge shortage of housing.

Why Oxygen?

There are many reasons but the obvious combination of putting one of the best Manchester Developers with one of the best locations and Manchester property growth is pretty much a winning combination. Oxygen itself is only 5 minutes’ walk from Piccadilly station and the new UK Amazon offices it’s pretty clear to see why there will be huge demand for the project.

The project yields and property growth and the low cost of finance allow property investors to make substantial gains and returns from this project with 46% ROI over 5 years, see example below:

INTIIAL INVESTMENT                                                 

342,000

3% Capital Growth PA for 5 Years

54,720

Rental Income

102,600

TOTAL RETURN

157,320 (46% ROI)

Financing Options below Yield

As an overseas investor you can reasonably expect to achieve Loan to Value of 70% and an interest only rate of 3.5%. This will enable you to gear your property assets to own 3 units instead of one.

Simple example below:

Property value 100,000

Yearly rental income

6000.00

Yearly cost of Finance

2450,00

Net Income

3550.00

So you haven’t used all your capital i.e. only 30% thus allowing you to Acquire 3 units not one.

Also over a 5 Year period you would expect the asset to grow to 116,000 with compound growth leaving the net value of your asset at 46,000 but you have only invested 30,000. You then add back the net income of 17.500 and the total return is 63,500 over 200% ROI in 5 years at over 40% PA.