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THE SUNDAY TIMES 16 MARCH 2008 - PROPERTY SUPPLEMENT
“Costs and red tape take the shine off the UK ...”

But There Are Some UK Stars Still Shinning Brightly
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OUR MARKET COMMENT

We’ve read a variety of articles in different (but all trusted) publications that give good reasons to believe the worst of the storm has passed and the future will be much brighter and more profitable for us.

Firstly the wider economy – two articles in particular (many other similar articles can be found if you’re interested) reassured me that market commentators had probably overplayed the likelihood of a recession in the UK. If you get chance I think you should read them both:

David Smith, The Sunday Times - Link
Anatoly Kaletsky, The Times - Link

These suggest unemployment is improving, interest rates are dropping and the markets we’re most interested in are likely to bounce back relatively soon.

Secondly UK property - an article landed on my desk written by the well regarded Richard Donnell from Hometrack. It explained that government policy had recently pushed developers to build high volumes of properties to keep up with the UK’s rapidly increasing population with a view to delivering 240,000 new homes per annum. Supply peaked at around 180,000 per annum about 6 months ago but the Ill-informed speculators that were buying up to 50% of these properties had now all but left the buy-to-let market, particularly in regional cities like Leeds. As a result supply has already fallen to nearer 160,000 units per annum and in the wake of the credit crunch likely to fall further. If you’re still with me the point is prices move in relation to supply and demand. Generally if supply is lower than demand prices will rise.

This fall in the supply of residential properties (which IMO will last for at least a few years now) combined with the increasing delays in achieving planning permission and peoples clear preference for living in houses (harder to supply) over flats should mean our properties and their rents are set to increase in value substantially over the next 5 years.

All of this suggests to me that now is absolutely the best time to be buying high-yield residential houses in popular parts of London. Before everyone else wakes up to the fact the bottom hasn’t fallen out of the market and we start finding it harder to secure big discounts to the current market values again.

STAND NO. 33
INVEST IN PROPERTY SHOW – CITY EDITION
27 – 29 MARCH 2008

PRESS RELEASE

MAXIMISE RETURNS WITH A NICE INVESTMENT

Nice Investment highlights that investment in an HMO (houses in multiple occupation) can produce a much higher return for the buy to let investor than a single tenancy property. Nice Investment will be showcasing this innovative London based investment proposition at the Invest in Property Show, City Edition which takes place 27 – 29 March at Old Billingsgate.

Nice Investment, the brand leader in the multi-let house share market, has developed a one stop solution for private investors to invest in high quality, branded rental accommodation for young professionals. The group offers the full range of services including investment advice, property buying, redeveloping and refurbishment, lettings and property management all in one place, creating an innovative mechanism for individuals to get into this complex and high performance investment with minimal effort and greater potential return.

Visitors to the Invest in Property can learn more at a workshop entitled 'High Return Multi-Lets without the hassle' hosted by Chris Dunning, Managing Director of Nice Investment on Friday 28th March.

Chris Dunning explains: “This is a high performance investment – most casual buy to let investors would not have the time, effort and skill to do a multi-let property and certainly not to this standard. Returns are better than on most other buy to let investments, with gross yields standing at typically 7 to 9%. Currently opportunities are focused on London where the property market is perhaps more robust than elsewhere in the UK and, in particular, in areas with long term regeneration potential. This is one of the best solutions in the market for gaining the highest rental yields and equity growth in the mid to long term.”

Nice Investment has a dedicated team of finders who buy properties on behalf of private investors. With their local knowledge and extensive contacts, they have the Press

advantage of being able to find deals at prices below market value. They usually look for three or four bedroom houses with conversion potential, although single tenancy apartments are also sought. Each property is then refurbished to a very high standard by Nice’s own team of builders, architects, surveyors and interior designers. The houses are often reconfigured to maximise the number of bedrooms and square footage for example by adding a loft conversion or extension. Upgrading the property adds value and increasing the number of bedrooms for rental also in turn means a higher return for the investor.

Once the property is refurbished, Nice Group finds tenants, letting the property out on a room by room basis under the brand name Nice Room. Its core market is young professionals, with an average age of 28. Through Nice Room’s dedicated online lettings portal (www.niceroom.co.uk) and proactive marketing support, a very high occupancy rate, usually above 95%, is achieved for each property, again meaning a high return for investors. Nice Room then manages the relationships with the tenants and all maintenance for the property on an ongoing basis.

Chris continues: “We have created a strong brand that adds value to the property and inspires investor confidence. This strong brand in turn attracts tenants, which results in high occupancy rates, and, along with the premium rents, yields higher returns for the investor.”

In terms of outlay to the investor, a finding fee of 2% of the property purchase price is paid initially. The investor pays for any refurbishment, takes on the mortgage on the property and pays a management fee to Nice on a monthly basis rather than upfront.

Nice Investment’s portfolio of properties under management currently stands at around 250, with a value of Ł185 million, focused mostly around South East London and Docklands. The spread of properties is now being expanded to cover Islington, Camden, Clapham and Brixton, as well as overseas operations in Sydney, Leipzig and New York. Press

For further information see: www.niceinvestment.co.uk Tel: 0207 358 8118

-ENDS-

Investment Workshop:

Chris Dunning of Nice Investment will be hosting a workshop seminar entitled 'High Return Multi-Lets without the hassle' on Friday 28th March at the Invest in Property Show.

For more details about the show see: www.investinpropertyshow.com

For further press information, please contact Clare Slack at TTA Public Relations on 0207 886 0308 or cslack@ttagroup.co.uk

A NICE WAY TO INVEST.

Nice Group has hit upon a gap in the market for high quality branded rental accommodation for young professionals. The companies business model has created an innovative mechanism through which both private and institutional investors can invest in the private residential rental sector. This model which began on a small scale, has flourished so that it is now a viable option for major international investment funds.

For private investors, Nice Group has a dedicated team of finders who buy properties, both flats and houses, using the local knowledge and extensive contacts to find deals at well below market value prices.

Each property is then refurbished to a very high standard. The houses are reconfigured to maximise the number of bedrooms, as having more rooms to let out in turn means a higher return for the investor. Nice Group has it’s own team of builders, decorators and an interior designer, who ensure the properties are a very high standard across the board, which is another service offered to investors making their property more attractive and adding value. The investor pays for the refurbishment and then takes a mortgage on the property. They pay a management fee to Nice Group which depends on whether it is a single or multi-let property.

Once the property is refurbished, Nice Group finds tenants. In a multi-let house they let out each room separately; these are marketed to professional tenants through the sister company Nice Room (www.niceroom.co.uk) These properties manage a 95%+ occupancy rate for each property. The hook for would-be investors is the one-stop-shop approach, and typical Net yields that are a healthy 7 to 8 %.

Check out www.niceinvestment.co.uk to find out more.