Currently there is a shortfall of some 100,000-student rooms across London, particularly in central locations. For the discerning UK and overseas student, this boutique development, comprising of 62 studios and en-suite student pods will offer a luxury accommodation option and a fresh alternative to large, over crowded halls of residence and private housing in the area.

These new build student investment opportunities start from £75,700 for an en-suite unit to £85,000 for a studio; the gross yield is 11.1%. After management fees and other charges this nets to 9%.

This is a completely hands off investment as the sourcing and management of student tenants is the responsibility of the management company.

Rents in the student sector have increased by 5% per annum over the last 6 years which when compared to 0.6% for the commercial property market as a whole, is a strong performance. Additionally, occupancy rates for student property are extremely high.

A useful way to view this investment is in terms of cash in the bank or cash in a high yielding student property with the potential for capital growth.

Inflation Proof Investment

Capital Growth and Income

The capital value of these studio pods should increase in line with rents and given the demand for student accommodation in London, it’s a fair assumption that rents will increase in-line with demand and also inflation.

If rents increase by 5% per annum (as experienced over the past 6 years), compounded over 5 years, then the gross rent would be:

£9,435 increasing by 5% per annum = £12,042

£8,415 increasing by 5% per annum = £10,740

Presently the gross yield is 11.1%, so to maintain that yield, the capital value would increase to:

Rent divided by yield = capital value = £12,042/11.1% = £108,486 (studio)

Rent divided by yield = capital value = £10,740/11.1% = £95,757   (en-suite)

The point is that these units should increase in value in line with rents as their capital value is determined solely on the rent it produces.

Further, given the very strong rental returns, it may be possible to offer a unit for resale at some stage in the future once the investment is more established. For instance, if you wished to ‘sell on’ with a gross yield of 9% which is still very attractive, particularly in London, then the calculation in the example above would be:

Rent divided by yield = capital value = £12,042/9% = £133,800 a capital gain over 5 years of £48,800 or 57%.

What’s Included?

Each student property includes:

• Kitchenette (Studios only)
• Bathroom
• A flat screen TV
• A double bed
• Study desk and desk chair
• Wardrobe
• Carpets & Blinds
• Full internet connection

Additionally, communal facilities include:

• Laundry facilities
• Media services including printer and photocopy facilities
• Communal lounge with 42” flat screen TV
• Bike Storage
• Management office

Bold Spirit has a limited number of units for sale and will be allocated on a first come, first served basis. This investment offers:

• High net yield and income (Guaranteed for the first year)
• Robust student sector in London, with a worldwide demand for educational services
• Luxury accommodation which gives this development a unique selling point in the market
• A fully managed investment
• Walking distance to the University

If this cash investment is of interest to you, then please fill in this form or telephone Alex on 0151 243 5431

Best wishes

Dominic Farrell

Here we are at the end of a tumultuous year for the UK, European and North Atlantic economies where many of the finance ministers will be wishing for ‘out with the old, in with the new’ in 10 days’ time. If only it was that simple.

Effectively, we have gone from one major crisis to another without pause for breath. The Credit Crunch which followed the collapse of Lehman Brothers in September 2008 hasn’t really gone away, but has manifested itself into a Debt Crisis on both sides of the Atlantic. This crisis became a reality last August with the downgrading of the United States rating by S&P one notch to AA+, citing concerns about budget deficits. Only last night Moody’s, another ratings agency, questioned the UK’s ability to maintain its AAA status, whilst other European economies and banks saw their ratings cut last week, notably Belgium by 2 notches to Aa3. It has certainly been the year of the ratings agencies; it’s just a shame they weren’t up to the mark in sounding alarm bells back in 2006/2007 which is really what they’re there to do.

It’s also been the year of the Central Banks with a loosening of monetary policy. Quantitative easing, a term as familiar as Zenzizenzizenzic a couple of years ago, is the central bankers main weapon in parallel to movements in key interest rates, in the fight against recession and indeed, depression. Zenzizenzizenzic is an old mathematical notation for a number expressed to the power of eight, which actually fits nicely into a paragraph about debt. Governments with limited resources, borrowed many times in excess of their earnings, to fund a national lifestyle they could ill afford. Just as the original Credit Crunch began with a rise in US interest rates, the European debt crisis started when bond yields for the likes of Greece and Ireland shot up. It’s not the debt that gets you, but your ability to fund it – that’s the essence of the problem.

We can’t summarise the year without reference to the Euro. Unless you change the culture and mentality of every country within the Eurozone, it’s going to fail. If people in a member state don’t like paying taxes, don’t have any world beating products, but want to retire young with fabulous pensions, then someone has to pay. Presently it’s the Germans! This state of affairs will not continue indefinitely and one thing’s for sure the Eurozone will look very different this time next year.

Next year will be tough, as economies around the globe see their growth forecasts slashed. Closer to home, many are predicting a technical recession in the UK, although the semantics of ‘recession’ are meaningless if you’ve just lost your job or can’t find work. Pressures on household budgets will remain as the cost of living (inflation) rises well above the rise average earnings.

My view is that we will continue to bounce along the bottom until the Eurozone crisis is decisively resolved. Decisive is not a word normally associated with the European Union, but I think markets and public opinion may well have an impact as well as the changing of the guard in some European capitals as key elections take place in 2012.

At Bold Spirit we are looking forward to a busy start to 2012. One of the beneficiaries of the economic turmoil is the distressed assets industry, whether companies, developments or individual properties. Although we deal, in the main, with receivers and administrators, it is sometimes sad to walk around a development where you can see that the developer has put his/her heart and soul into it, only to be foreclosed by the bank; or they’ve simply walked away. But these properties are there to be bought and we’ve had considerable success on behalf of clients in 2011. Indeed we have only ‘lost’ one development we have bid for which is a record I am very pleased to announce. This is really testament to the quality of clients we attract and I hope to improve on this record in 2012.

In the first week of January we will have 4 developments for sale, 3 with receivers and one via another source. They range from £500,000 to £2million and offer exceptional value as well as strong yields. At the individual property level, we will have a number of high yielding properties in the North West and London in Q1 2012.

Our offices are closed from the end of today (21^st) to 0900hrs Tuesday January 3^rd 2012.

Whatever Christmas means to you, I hope you and your family have a terrific one. May peace, joy and happiness fill the air in your homes over the next couple of weeks.

And let’s look forward to a prosperous and healthy New Year.

Best wishes,

Dominic Farrell

Please find below Bold Spirit’s latest property investment deals:

Student Investment Property – London

We’ve had a tremendous response to our London Student Investment offer which at only £82,700 per unit and an 11.1% yield has attracted buyers from around the world. If you would like to reserve a property, you will need to move quickly. We have estimated potential capital growth of 57% over a 5 year period if rents continue to rise by 5% per annum (which they have for the past 6 years) and the property is ‘sold on’ with a 9% yield. This investment is hands free and has a management company in place for lettings and property management.  If you’d like more details, please telephone 0151 243 5431 or leave an enquiry here.

9 Apartments with parking – Greater Manchester

We have another Year End deal for a cash buyer.  The apartments are fully tenanted and are available 36% below the prices currently being marketed by a national developer. They are in an area of very strong tenant demand and are presently under-rented. The yield is in excess of 10% and £477,000 secures the block, giving an individual unit price of £53,000 against a selling price of £72,000. These units can be refinanced the day after completion, allowing capital to be released quickly. This investment is hands free and comes fully managed.

5 Apartments – Birmingham

In receivership, these new build apartments are in a prime area of Birmingham and offer prices 32% below open market prices. The yield is 10.3% across the apartments. This investment is for cash only buyers at £319,000 for the 5, averaging £63,800 per unit.

Prestigious Landmark Building – Northern England

Over 100 apartments with commercial space, this property is valued between £14 million to £16 million and offers are invited to the seller. We believe we can secure this property at a substantial discount to present value with a yield of around 10%. Please call direct to discuss this project.

If you have any specific requirements in terms of location, yield, discount or finance, please do not hesitate to call the office and seek our assistance.

Best wishes

Dominic Farrell

If there is any good news in the Chancellor’s Autumn Statement please forward it to me marked urgent.

A useful summary is below:

ECONOMY

2011 growth forecast revised down to 0.9% from 1.7%

2012 forecast revised down to 0.7% from 2.5%

In 2013, 2014 and 2015, forecast growth will be 2.1%, 2.7% and 3%

GOVERNMENT BORROWING

Extra £100bn in borrowing over four years

Borrowing forecast to be £127bn in 2011-2, falling to £120bn, £100bn, £79bn and £53bn in following years

Debt to GDP ratio to peak at 78% in 2014-5, falling afterwards

PUBLIC SECTOR PAY AND PENSIONS

1% cap on public sector pay rises for two years after the end of current freeze next year

Review into regional pay adjustments

Rise in state pension to 67 to be brought forward to 2026 from 2034

TRANSPORT COSTS

Rise in regulated rail fares to be capped at 6.2% – 1% above inflation – in January, down from 8.2%

Planned 3p fuel duty rise in January to be scrapped.  August 2012 duty rise reduced from 5p to 3p

BENEFITS

Benefit payments uprated by 5.2% next year, in line with inflation

Basic state pension and pension credit to both rise by £5.35

Below-inflation increase in some tax credits

Additional £110 rise in the child element of the child tax credit scrapped

BUSINESS AND JOBS

OBR forecast of total public sector job losses up from 400,000 to 710,000

Credit easing programme to underwrite up to £40bn in low-interest loans to small and medium-sized firms

£1bn business finance partnership to help raise money for medium-sized firms

Regional Growth regeneration fund to get £1bn in extra funding

£250m support package for energy-intensive firms, £500m for science

Business rate holiday relief for small firms extended to April 2013

New time limits for planning applications

£1bn “youth contract” to subsidise six-month work placements for 410,000 young people

Bank levy to be increased in January

EDUCATION AND FAMILIES

£1.2bn extra spending on schools in England

Half to go to councils for more school places and half for 100 additional free schools

£50 cut in water bills for families in the south-west of England

Childcare places for most deprived two-year-olds in England doubled to 260,000

HOUSING

Mortgage indemnity scheme to help up to 100,000 people buy homes with 5% deposit

£400m scheme to kick-start stalled construction projects in England

50% discount for social tenants wanting to buy their own homes in England

INFRASTRUCTURE SPENDING

£5bn new spending over three years, including £1bn for the rail network

Go-ahead for 35 road and rail projects across England

Aim to unlock a further £20bn in investment from pension funds.

OVERSEAS AID

Funding will not exceed 0.7% of total GDP

2011 BUDGET PREDICTIONS

In March, the OBR predicted the economy would grow 1.7% in 2011 and 2.5% in 2012

It forecast government borrowing of £146bn in 2010-11, falling to £122bn in 2011-12, £101bn in 2012-3, £70bn in 2013-4, £46bn in 2014-5 and £29bn by 2015-16.

Source: BBC

Commentary:

It is fair to say that we are living in unprecedented times with arguably the worst economic crisis since the Wall St crash of 1929. It is four years since Northern Rock asked the Bank of England for liquidity support following the spread of the mortgage and banking crisis from the US and 3 years since Lehman Brothers went bust.  To all intents and purposes, what was a crisis in the credit markets brought on by the higher US interest rates and defaults on sub-prime mortgages is now a full-blown Western debt crisis.

How many times did I use the word ‘crisis?’

Uncertainty in the Eurozone; will the Euro survive in its present form? The answer is clearly no. What will replace it and how will debt ridden countries such as Greece and Italy cope? What would be the effect of a devaluation of a new (old) currency such as the Drachma or Lire?

How will the EU operate going forward? Northern Zone, Southern Zone, Non Eurozone, Ex Eurozone? Who knows?

An indication of the sense of uncertainty is that the UK government can borrow from the markets at a cheaper rate than Germany.

The present situation can be summarised in one word: uncertainty.  Uncertainty spooks not just markets, but people, businesses and governments. Uncertainty leads to delayed investment decisions, unemployment, reluctant consumers and, combined with cuts in government expenditure, ironically leads to greater borrowing as tax receipts fall and benefits rise.

Until the Eurozone crisis (yes that word again) is resolved decisively, which is a challenge for Europe, then we will continue to bounce from bad news to bad news.

There is some good news: the market for distressed or repossessed properties has never been better. One of our clients completes this week on a property which is presently insured for £2.5 million and he’s paying about a third of that. In all economic scenarios, there are winners and losers, although I do appreciate, the difference can be a whisker.

Best wishes

Dominic Farrell

Bold Spirit is pleased to offer clients a new build student investment in Greenwich, London. At £82,700 a unit, the gross yield is 11.1% which nets to 9% after management charges and other expenses.

This is a completely hands-off investment as the sourcing and management of student tenants is the responsibility of the management company.

A useful way to view this investment is in terms of cash in the bank or cash in a high yielding student property with the potential for capital growth:

Inflation Proof Investment

In a bank with gross interest at 2%, £82,700 would return £1,654 before tax and inflation. As inflation (as measured by the RPI) is presently 5.4%, the loss in purchasing power before tax is -3.4%

In this particular investment the NET yield is 9% with an income of £7,443 a difference of £5,789 and clearly increasing the purchasing power of your cash, well in excess of inflation. As the property is in London with its unique supply and demand gap, the possibility of good capital growth, even in today’s market, is good.

What’s included?

Each student property includes:

• Kitchenette
• Bathroom
• One double bed
• Desk and chair
• Flat screen TV
• Wardrobe
• Carpets and blinds
• Internet access

Additionally, communal facilities include:

• A fully operational gymnasium
• Laundry
• Media services area
• Communal lounge with 42” flat screen TV

Location

• The development is ideally located only 15 minutes from Central London
• Only 100m from the University
• 600m from the railway station

Bold Spirit has a number of units for sale and will be allocated on a first come first served basis. This investment offers:

• High net yield and income (guaranteed for the 1^st year)
• Robust student sector in London, with a worldwide demand for educational services
• Luxury accommodation which gives this development a unique selling point in the market
• A fully managed investment
• Walking distance to the University

If this cash investment is of interest to you, then please fill in this form or telephone Daniel on 0151 243 5431

Best wishes

Dominic Farrell

I don’t intend to give a blow by blow account of what’s been happening in the Eurozone or at the G20 meeting in Cannes as it is plastered all over the media, spoken about in pubs and taxi drivers are now giving opinions on the benefits or otherwise of Greece leaving the Euro. What I will say, is that the 25 basis points cut in the European Central Bank rate is most welcome and is designed to defend against recession on the continent. What is for sure is that this particular Greek tragedy has consequences for the UK, not least the prospect of increasing our contributions to an IMF bailout fund; something our Prime Minister naively ruled out last week!

Now to events we have control over.

Asset Management

Bold Spirit has been very busy in recent months with the formation of an Asset Management division under Alex Clark. Alex is a graduate of Sheffield Hallam University where he read Property Management and then spent some time with DTZ in Manchester. He has returned to Liverpool and is a welcome addition to the team. If you have property anywhere in the UK and wish to discuss enhancing its value, whether capital or income, through active property management, then he’s the man to speak with – 0151 243 5433.

Repossessed and Discounted Stock

We’ve had a number of notable successes recently and added significant value for our clients. At the larger development level, a trust fund saw a 50% uplift on capital values literally overnight, whilst at the individual level we have secured HMOs for clients with 10% – 13% plus yields. Another client exchanges on a scheme next week with yields north of 11% and a purchase price 60% below what someone paid not so long ago and 65% below what it’s presently insured for. These successes are due to the hard work of my team, the reputation Bold Spirit has amongst receivers, administrators and developers for delivering, and the smart, decisive investors we attract.

Latest Stock

We are presently working on:

• A prestigious, landmark mixed-use scheme with a value in the region of £16m to £17m, high yield and the potential to acquire it 30% plus below market value. This investment will suit a cash buyer, trust fund or other purchaser with liquid funds. This development is in a major northern city.
• We are negotiating with a national developer, significant discounts for both bulk purchases and individual units. Sales prices are 36% higher than we have negotiated and the yields are double digit in great locations with strong tenant demand. With good asset management, the yields can be enhanced substantially. Entry prices are low.
• Individual HMOs.
• Student property in London and the Midlands.

If any of the above of interest to you, or your clients, then fill in this form or telephone Daniel on 0151 243 5431

South Africa Property Investment Roadshow

Bold Spirit will be represented at property investment seminars in Johannesburg and Cape Town during mid-November. If you wish to attend, then please fill in this form.

Finally, if you wish to visit us at Bold Spirit House to discuss your investment criteria, strategy or assistance with raising finance, then please call Daniel to book an appointment.

Agents

Bold Spirit has established relationships with numerous high quality property agents in the UK and overseas. If you have the same ethos as ourselves and are looking to provide your clients with some of the best property investments presently available in the UK, then please enquire about becoming an agent.

Have a great weekend

Best wishes

Dominic Farrell

Bold Spirit clients have successfully acquired bank repossessed and other distressed properties over the past few years at substantial discounts to market value, some as high as 50%+. Additionally, many investors enjoy double digit yields, beating the wealth destroying effects of high inflation and low interest rates.

There has been no better time to invest in property to secure your long-term prosperity.

Bold Spirit property investment seminars have been very popular over the years and remain so, but there is a growing demand for individual one-on-one sessions with private investors. To that end, we have held a series of open days throughout 2011, enabling investors to learn more about the benefits of buying bank repossessed property and high yielding properties from other sources.

Bold Spirit is holding an open day at the Hilton Metropole, Edgware Road, London on Saturday 29th October 2011 from 11am to 5pm. Topics covered will be:

•How to source bank repossessed property at substantial discounts to market value

•Investing with yields of 8% to 15%

•Legal due diligence and avoiding the pitfalls

•Raising finance in today’s market

•Letting and asset management

•Using your cashflow as a pension

Attendance is by appointment only as the purpose of the day is to discuss personal investment strategies on a one-to-one basis. Bold Spirit has an enviable track record of securing outstanding investment opportunities throughout the financial crisis and has forged excellent links with receivers and administrators and has access to quality repossessed stock.

To secure your tickets fill in the form here or telephone Daniel on 0151 243 5431

Best wishes

Dominic Farrell

There’s been a lot of economic news in the past 24hrs, most notably the slashing by Moody’s of Italy’s credit rating by three notches, putting it on a par with Estonia and Malta. The consequences will be an increase in the cost of borrowing and the downgrading of banks with exposure to Italian debt. Further west, Franco-Belgian bank Dexia has found support from governments and has been split into a toxic and less toxic bank. Further, credit ratings agencies will be looking closely at French bank exposure to Italy, in addition to exposure to Greece which may lead to further downgrades. In short, a downgrade makes it more costly and difficult for banks to borrow in the wholesale money markets, a fact which precipitated the crisis of 2008. Higher costs are passed on to businesses and consumers which has a negative impact on growth.

Almost as a symptom of the problem, a general strike is underway in Greece today as a protest against the austerity measures required in order to qualify for further IMF and EU bailout money. One wonders when the penny is going to drop? Or will the German taxpayer eventually get fed up paying for the excesses of other nations, or do they now have no choice?

At home in Britain, Q2 growth has been revised downwards from 0.2% to 0.1%, thus underlining the malaise of the UK economy. Public sector cuts, higher costs and no growth do not bode well for the future and unless the government has a Plan B, we’re doomed as Corporal Wilson from Dad’s Army would say. It is fair to say that we are at a crossroads and the next 6 months will define whether we enter a deep recession or not.

On a brighter note, property remains a solid, tangible investment as other alternatives, such as the stock market and bond markets underperform. Even gold has taken a hammering recently and concerted action by the Swiss government has curtailed the crippling rise of the Swiss Franc, the perennial safe haven in times of trouble.

Investing in property with strong yields and/or significantly below market value is as popular as ever. At Bold Spirit we have enquiries ranging from private individuals wishing to purchase one property, to funds, trusts and companies wishing to buy complete developments.  A sample of what we presently have on offer is below:

Repossessed Property:

• Gated development of 60 apartments, parking spaces and freehold, potentially yielding 11%. Discount off comparables in the region of 40% to 50% if purchased from the receiver at the Bold Spirit suggested bid offer. This development would suit a buy and hold strategy for a trust or fund, but could also be bought and sold on. Offers are required shortly, so if you have an interest please contact us today.
• A residential portfolio of freehold houses in the north of England with a yield of over 10%. Price in the region of £750,000
• London: mixed-use scheme with parking presently yielding over 7% with the potential to increase to 8%. Excellent value.

Houses in Multiple Occupation (HMOs)

• Low entry level prices with very strong yields of 10% to 16%. The properties are fully managed and represent an excellent income generating investment strategy. Prices from £100,000

Distressed Sales

Seven apartments, including the freehold, in a prime residential letting area, fully tenanted and yielding over 9%, with the potential to further increase the yield. Total price in the region of £340,000

Direct from a Developer

• 11 apartments and freehold interest in an excellent location. Fully tenanted at 8% yield. Price less than £1 million.  Comparables, on the market today are 33% higher with fewer bathrooms and also a less favourable aspect. This is an excellent investment.

Please feel free to ring one of the team to discuss your property investment requirements however large or small they may be. We also advise on asset management and would be happy to advise how you can increase the value of your property holdings through active management.

Best wishes

Dominic Farrell

I hope you are enjoying this late summer and making the most of it before the real weather sets in. It was 27C in Liverpool yesterday and as I write I think we will top that today.

The German parliament or Bundestag has this morning approved the expanded powers of the ‘bailout’ fund and increased German commitments from 123bn euros to 211bn. I‘m not sure what Mr and Mrs Schmidt makes of it all, but for now it looks likely that Greece will receive more funding through this mechanism and through the IMF.

Inflation continues to concern policymakers in UK and overseas and as I noted earlier this week, we have seen a flight to high yielding HMO properties by individual investors. The latest view on the Bank of England base rate is that there will be no rise for the foreseeable future, with some commentators pointing to 2014 as the most likely year! This is all good news for property investors.

At Bold Spirit we have seen a steady trickle of more repossessed stock hitting the market as banks unwind their positions and in some cases crystallise losses. Whether stock in is London or further afield, we have seen strong interest for keenly priced, high yielding properties.

We also have access to banks which will lend on strong yielding schemes immediately after completion if you use bridging finance or cash. This new facility allows cash rich investors to secure repossessed stock and immediately pull out their funds for further investment. This is an exciting development and illustrates that some banks have an appetite for lending.

We are presently conducting due diligence on a number of projects, examples of which are below and noting interest from our investors. If these or other locations appeal to yourself or clients, please register by filling in the form at the end of this newsletter.

Repossessed Property – London

We have a high yielding repossessed investment in West London which will achieve over 8% gross yield. Occupying a sought after location, this mixed-use scheme, with secure parking spaces, would suit both a buy and hold, or buy and sell on strategy. The purchase price is in the region of £4 million.

Repossessed Property Liverpool – Blundellsands

Located in one of the most prestigious residential areas of Liverpool, this development is in administration and significantly below market value. Its luxury apartments rent extremely well and secure parking is available. At guide, the yield is 9% and discount to market value is about 40%. This would suit both a buy and hold and buy and sell investor. The purchase price is in the region of £1 million.

Individual Houses and Apartments

Bold Spirit has a number of repossessed individual properties for sale at strong discounts to market value. Please enquire for details.

For all enquiries, please fill in this form.

I hope the weather continues for the weekend, but on past form, it’s likely to start raining at 5.30pm on Friday!

Best wishes

Dominic Farrell

As inflation continues to erode cash savings, investors are turning to high yielding properties to increase the purchasing power of their money. We have witnessed a huge increase in the number of enquiries for high yielding properties in the past few months and are pleased to be able to offer the following opportunities to our investors.

In all cases, Bold Spirit can manage the tenants and properties on your behalf and our finance team can assist with mortgage requirements, subject to status.

Manchester

• Popular student location
• Fully let for 2011/2012
• 6 bedrooms
• 2 bathrooms
• Recently refurbished

The income is £23,400 per annum on a negotiated price of £219,000 giving a yield of 10.7%.

On a 65% LTV HMO mortgage at 5.49%, the cashflow, after mortgage costs is £15,585 or £1,298 per month on a cash investment of £76,650

The net return on cash is 20.3% per annum (gross 30.5%)

For the 2011 Bold Spirit Research on the student investment property market in Machester, click here.

Liverpool

• Popular student area
• Fully let for 2011/2012
• Yields in excess of 13%!

These properties in Liverpool require a cash investment of £45,000 and will return net £12,600 per annum or £1,053 per month.

For the 2011 Bold Spirit Research on the student investment property market in Liverpool, click here.

The Liverpool properties are cheap relative to the income, as the seller is wishing to sell his portfolio quickly. These are strong income plays and represent excellent value, as does the Manchester property.

Demand for these properties will be high and are available on a first come first served basis.

Please call Daniel on 0151 243 5431 or fill in this form with a viable telephone number.

Best wishes

Dominic Farrell