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Invest offshore in England’s beautiful city of Bath

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Residential buy-to-let properties in Bath have become an attractive investment for investors looking for strong yields and capital appreciation.

The affluent and well-established city of Bath is located in the South West of England. It is known as one of Britain’s most beautiful cities with a rich history dating back to Roman times.

The UK is one of the world’s largest economies with a growing and affluent population and a world class education system, both at a school and university level. Over the last decade, the UK property market has emerged as a leading international location for residential property investment.

Residential buy-to-let properties in Bath have become an attractive investment for investors looking for strong yields and capital appreciation.

There is an immediate positive yield gap since the average yield in Bath is 4.5% while the lending rate is 4%.

Additionally, there is a high demand for rental properties as a result of the limited supply available. Horizon Capital International has witnessed significant capital growth on client properties that have been purchased to date. Furthermore all properties are achieving good rentals with no vacancies.

The Bath market has proven its resilience over a long time-span and survived an array of changing macroeconomic conditions and political uncertainties. “We remain of the view that the market will be well supported from inherent structural demand factors.”

The structural factors for housing in Bath have been driven by the relative affordability gap between London and Bath, the new high speed train line that is set for completion in 2018 placing Bath within an easy one-hour commute from London, the large expansion plans at the two Bath Universities and limited new development potential given its classification as a World Heritage Site.

Capital returns in 2016 were very strong. The return on capital invested in sterling on a typical existing GBP300 000 apartment, with a 60% mortgage and a price increase of 18% exceeded 50% and we expect that they were similar in 2017. This is purely the capital growth and does not take into account the rental income.

The pound weakened as a result of Brexit, during mid-2017 and now appears to be heading back to a mid-level of 1.5 to the US Dollar offering exchange gain opportunities.

Additionally, the rand has strengthened on the back of the changes in the ANC so we are of the view that it is a good time to buy pounds with the rand having edged back to the 16-17 level, 20% better than a year ago. We still face downgrading risks over the next few months so the timing now seems excellent.

Should you wish to discuss how Horizon Capital International can assist you in acquiring a property in Britain’s most exclusive and historic city or to assist in building a diversified international portfolio of directly held property, please contact us on 021 425 8586 or visit our website at www.horizoncapital.co.za

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