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#14 3rd Phase of PILC: Management

Dear MCM-Blog readers, we have arrived to the 3rd phase of the PILC what is MANAGEMENT. If you missed the previous article please click here:

#13. 2nd Phase of PILC: Construction / Property Development


In this article we will explain what management actually means when it comes to “Property Investment Life Cycle” and share some examples for you from our previous experiences in “Investment Strategy”.


The management of the property to a greater extent will decide the endmost value of the property once the property is developed. The potential price gain of the property will be affected if the property is poorly managed and not maintained in a well manner. Similarly, the property prices will increase further when managed appropriately and well maintained as the demand will then increase.


In this post, We would like to share one of our very rare, yet interesting investment portfolio under this segment. This involves a rare opportunity of managing commercial car parks in close proximity to international airports in UK. I will illustrate how this can turn out to be an excellent investment opportunity with secured capital gain and assured rental returns.


Investment Strategy

There are numerous interesting highlights and characteristics that categorise UK into such a productive and secure investment sanctuary. One of the numerous ways to invest in UK is in their commercial property segment.

Commercial property is a critical resource to consider as a way of spreading or bettering your chances in a speculation portfolio, in comparison to conventional resource classes, such as values and bonds. Commercial property proceeds to supply financial specialists with strong streams of rental income and consistent returns. It’s not a segment that private financial specialists should overlook.


Student Accommodation

A property without a tenant is rather pointless as there will be no source of income, while a property with organic tenant, the value of the property may increase but it will not increase in a short period of time.


Take student accommodation for instance.

Not all property unit are suitable to be a student accommodation. For example, an empty unit will be of zero value for both the tenants and the investors. A studio apartment may not be suitable to be a student accommodation as the bedroom and living room is connected together. This shows that the layout of the unit is important for a student accommodation. A student accommodation should have rooms with bathrooms for the student’s convenience.

Moreover, the design of the unit should also be considered for a student accommodation as to whether it is appropriate for the management team to manage the unit. The question that should be asked is if the units are fully furnished or is the investors required to furnish the unit for the students. Fully furnished units have more added value for the student rather than an empty unit as mentioned earlier.


On top of that, it’s usual for parents to worry about their children’s safety. Hence, a unit with high security system are often more reliable for student accommodation as the student’s safety is guaranteed and parents will usually purchase this units. This can result in investors enjoying the economy of scale while managing 10 units compare to 1 units.


Investment Process

Conclusion

The UK is a developed country and has the world’s 7th largest economy by nominal GDP and 9th largest by PPP (Statistic Time, 2019). Besides, UK remains a great control with impressive economic, cultural, military, logical, and political impact internationally.

Commercial property investment in UK gives great returns with low risk and secure long term future. Investments in airport car parking include up to a interesting opportunity to contribute in a market where demand exceeds supply.


To be continued… Phase 4: Renovation, where we are anatomising 4th phase of the Property Investment Life Cycle.



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