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The current turbulence in the global financial markets has created openings to purchase highly discounted properties in one of the worlds strongest economies - The United Kingdom. Prime commercial and residential units can be purchased from a wide range of distressed sellers for less than their construction costs.
This is truly a once in a generation opportunity and Torcana have sourced some terrific properties with very sound long term potential and high rental yields.
The United Kingdom has a diverse economy, strong domestic markets, sophisticated financial systems, the ability to borrow cheaply and the capability to implement well thought out reforms. The rental markets in major cities are both strong and sustainable and provide investors with the ability to purchase cash flow positive properties that can be resold to the local market in the mid to long term.
If demographic trends in the England continue, the number of households is expected to increase to 27.8 million by 2031, an increase of 6.3 million on the 2006 estimate. The governments recent target of 3 million new homes by 2020 was based on these very projections. The credit crunch and subsequent recession has ensured that these targets will be extremely challenging to say the least.
Total housing completions are likely to be around 145,000 in 2008 which is 17% lower than 2007 according to the UK House Builders Federation. Additionally, the number of new homes started in Oct 2008 fell 65% y-o-y to 5,893, the lowest level since records began. These dramatic falls in new home starts is certain to continue throughout 2009 and will lead to large supply shortages in the major urban centres - i.e. places where people will always want to live and work.
It is (and will be for some time) a government priority to use its influence with the banking sector to ensure first time buyers are given adequate access to mortgage finance. Once this sector of the economy stabilises, the supply shortages in places like London and Greater London will ensure huge capital growth potential for those who purchased properties from distressed sellers at below market value in 2009.
It is these reasons and more that should ensure that the UK and particularly London recover faster than most other economies.
Please see the property listings to your left to view our latest offers.
You can also download and save our ten page UK Investment Guide.
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