fbpx
Nov 11, 2021

Carrick Property’s Scott Irving sets the offshore investment agenda for 2022

Offshore property investment is open for business – and how!

So says Carrick Property’s MD Scott Irving. With four new offshore property products coming onto the market before year-end, Carrick Property – a division of the Carrick Group – is a fledgling no more. It has made its mark in this asset class, and is now clearing a path to even more appetising offshore asset exposure for its clients.

Scott joined Carrick Property as General Manager in June 2021. He has been firing on all cylinders ever since (if his conversation with Asset is anything to go by), and the company’s goals for 2022 are shaping up rapidly.

“Carrick was established seven years ago by Craig Featherby. He identified a need for a strong, innovative and unrivalled global real estate investment strategy which would help Carrick to add even more muscle to clients’ wealth portfolios. Carrick Property is now well-positioned to grow this offshore property strategy even further,” Scott tells Asset. “There is so much rubbish in the market at the moment that my focus is to continue seeking out and providing those premium opportunities which assure our clients of good yields and sustainable returns. Furthermore, we want to educate our clients on the very real benefits of investing offshore and the means of doing this via offshore lending structures.

This method of financing an overseas asset is something many people are unaware of.”

South Africans especially so, it seems. Scott says Carrick Property works hand in hand with the very best offshore developers and partners to source the best opportunities for Carrick clients across a particular development – in other words, no ugly ducklings or poorly positioned units that
are proving hard to shift.

“Once a property has caught the eye of our client, Carrick facilitates discussions between carefully selected mortgage lenders and banks to secure the best finance package available. South Africans have access to offshore lending structures and can leverage a far better return by financing and purchasing a much larger property than they initially thought they could afford. We guide them through how they can do this. When you look at the local market as opposed to the offshore market, it’s a different space in terms of the pace at which business is conducted, but the procedure around applying for a mortgage is not that different at all.

“We ensure a streamlined process providing our clients with a turnkey solution. Our clients are not just a portfolio number. They are incredibly important to us and we strive to understand their objectives in wanting to purchase offshore. We listen to their needs and what they wish to achieve. This is the embedded philosophy at Carrick.”

There is a range of questions which Carrick will try to find the answers to when it starts discussing investing in real estate with clients. Why do they want to invest offshore? What’s the driver? Are their children moving overseas to study? Do they want to be able to visit them and stay in comfortable home away-from-home accommodation? Is the decision purely investment-driven?

As far as real estate purchases in the UK are concerned, Scott says these properties are predominantly investment purchases, with buyers intent on renting them out and not living in them. Other Carrick real estate products invite a different modus operandi.

The 5-star Wyndham Halcyon Retreat in Limousin in France is one such example. It offers an opulent and luxurious experience in beautiful natural surroundings deep in the French countryside.

“Investing in this prime property is both a lifestyle and investment choice,” Scott says. “Clients go to play golf, cycle, horse-ride. They immerse themselves in the area’s rich cultural and historical heritage for two weeks a year, and for the rest, they have the benefit of a 6% to 8% return when they are not using the property. A deluxe leisure product like this ties in perfectly with an investment component.”

With purchases in the UK representing primarily an investment tool, the question of where to invest naturally raises its head. Carrick Property offers product in London, Manchester and Birmingham.

“London is a mature market. However, over the past 12 months there has been an upward trend in demand and yields despite the high prices. Clients who choose to purchase there are able to command higher rentals and ultimately enjoy higher capital growth. That being said, there is both growth and value to be found in other cities. We look carefully at the value offered by the products we choose to market – both the projected capital growth and the rental returns. We unpack the investment case fully for our clients so that they have a strong grasp of the potential of their investment.”

In order to do this Carrick carries out solid research into the products it is championing. First and foremost it looks for a partner product developer who is held in high regard in the market. Secondly, the cities and suburbs this developer works in are assessed.

“We look at what longstanding relationships they have in the industry, their track record, how many developments they have completed and how many units have been sold. We also make enquiries as to the support they give clients,” Scott explains. “We ask for the research they’ve done before starting a development in a particular location. What is the tenant profile they expect to attract? What’s happening in the city and is there likely to be population growth?”

“It’s vital to understand the context in which these developments are taking place in order to present our clients with an investment case which is strong and transparent. We also compare property performance in potential investment cities with the national averages, and we weigh up demand and supply as well as predicted growth forecasts. Our partners are on the ground to do due diligence of the selected sites. This provides Carrick clients with peace of mind, as they generally aren’t able to visit offshore sites themselves.”

Scott points out that other critical consider-ations before backing a development and introducing it to the market include being aware of which industry sectors are well-represented in the area; whether these sectors are expanding and hence looking to employ more people; where the transport nodes are; what connections there are to other major cities, the scope of local amenities; and ease of access to retail and lifestyle facilities, all of which need to be appraised.

Helping clients to fully understand Carrick’s comprehensive and thoroughly-researched approach to offshore investment is key for a number of reasons. It builds confidence in the investment products on offer, informs clients of both benefits and risks, deepens their knowledge of the processes to be followed and ultimately builds strong and trusting relationships with the Carrick team.

A recent webinar took attendees through the international mortgage application process, showing them how to leverage against borrowed finance and maximise their returns, and what criteria needed to be met. Between 60% to 70% mortgages are available to South Africans, says Scott. He points out that webinars and face-to-face discussions with clients offer the ideal opportunity to take clients through various purchasing scenarios.

He cites the example of paying GBP250,000 cash upfront for a new apartment which is yet to be built. If however a purchaser buys the apartment off plan, he/she would put down 20% for the first two years while the apartment is being built, which equates to GBP50,000. If its value increases by 10% during that build period, the purchaser benefits from a GBP25,000 uplift.

Easy enough to understand and that much better when explained by someone like Scott who wants to make the ‘talk’ around property investment accessible to the layman. “I want to make it as reassuring and easily understandable a process as possible when Carrick clients navigate an offshore purchase.”

With new and exciting offshore products lined up, Carrick is predicting a fresh infusion of energy into the offshore real estate space in 2022. Phase Two of Mango Village in Mauritius is launching, while units in London and Scholar’s Quarter in Birmingham have gone to market, and a further development in Germany is underway, says Scott.

“We understand the ‘why’ of offshore real estate investment. We appreciate why clients want to externalise wealth and so we recommend adding a standard asset class like offshore property to ensure long-term wealth and build portfolio diversification. Specialising in the right product for the right client is at the heart of the ‘why’ of offshore real estate investment at Carrick Property.”

Carrick Property proudly brings to market…

Scholars Quarter – The Jewellery Quarter, Birmingham

Scholars Quarter occupies a prominent location in Birmingham’s vibrant Jewellery Quarter, offering views of the Birmingham skyline.

Key points:

  • Developer: Kings Crescent Homes
  • 1 bed from £199,950 – £275,000
  • 2 bed from £281,000 – £350,000
  • 57 units available
  • Estimated completion: Q4 2023
  • Rental yield: up to 5.2% Gross
  • ROE: 48.3% Year 5 and 108.7% Year 10
  • Tenure: 999-year leasehold
  • Ground rent 0.1%

Location – Birmingham:

  • 8% predicted population growth by 2038
  • £5 billion invested in infrastructure in the city centre
  • 32% growth in house prices between 2017 and 2021
  • With a population set to hit 1.24 million by 2030, Birmingham is one of the fastest growing cities in Europe and ranked as one of the most popular places in which to invest
  • The city has a booming £120 billion regional economy and is home to global employers such as Jaguar Land Rover, HSBC, Deutsche Bank, Deloitte and B

Hayes Village

 

 

Key points:

  • Location: Hayes, West London, UK
  • Developer: Barratt London
  • Estimated completion: Summer 2023
  • Total of 113 units across Ground to 10th floor
  • 1 bed starting £288,000
  • 2 bed starting £475,000
  • 3 bed starting £523,000
  • The payment terms are 10% deposit on exchange and the balance on completion in Q3 2023.

Why Hayes Village:

  • An exciting development located on the iconic former Nestlé factory site surrounded by parklands and with the Grand Union Canal on its doorstep
  • Easy access to local amenities, quick connections to Heathrow and a vibrant village-like feel at its heart
  • Just an 8-minute walk from Hayes and Harlington Station on the Elizabeth Line (due to open in 2022) directly connecting to Central London
  • Cranford Park and Minet Country Park are both less than 10 minutes away
  • Open walkways and avenues throughout the development
  • Most homes come with private outdoor space.

Halcyon Retreat, Golf & Spa Resort

Location – Limousin, France

  • Developer: Halcyon Retreat and Wyndham Hotels & Resorts
    –  Studio starting from €196,000
    –  1 bed starting €297,000
    –  2 bed starting €480,000
    –  3 bed starting €585,000
    –  4 bed starting €1,094,000
  • There are over 60 activities and facilities to enjoy at the resort including an 18-hole golf course, chateau spa, and an aqua adventure park.
  • Estimated completion: Q4 2022
  • Guaranteed rental returns of 6%-8% per annum
  • Fully capital protected. Buy-back option available from Year 5 for 100% of the price paid
  • No bank or finance charges
  • Option to use your investment property for two weeks every year
  • Freehold ownership – you hold the title deeds to your property
  • Fully managed – managed by the Wyndham Hotel Group, the largest hotel group in the world
  • No maintenance costs – all maintenance costs are taken care of whilst your property is being rented.

Mango Village – Phase Two

Location – Beau Plan Smart City, Mauritius

  • Estimated completion: October 2023
  • 20 units
  • Indicative prices
    – Six 2-bedroom apartments of between $300,000 to $320,000
    – Four 3-bedroom apartments between $360,000 to $370,000
    – Two penthouses of 3 or 4 bedrooms (with or without swimming pool) between $660,000 and $900,000
    – Six duplexes of 3+ bedrooms between $500,000 to $570,000
    – Two duplexes of 4/5 bedrooms between $610,000 to $620,000
    – It’s important to note that the prices are indicative at this stage and will be firmed up by the time we launch. USPs of the Project
  • Designed by one of the leading architects in Mauritius, Jean Marc Eynaud, who has designed many of 5-star hotels around the island
  • Spacious apartments offering great lifestyle and practicality with outdoor balcony spaces
  • Interesting potential as a yielding asset due to its location but also due to the fact that opposite the apartments on the shores of the lake, construction for our exclusive lakeside offices, ‘The Strand, has already started with delivery scheduled for December 2022. It will be the future working space of some 850 people providing huge yielding potential to the apartments at the back.

Suggested for you

04 Mar 2022

Let Your Goals Determine Your Purchase

The great thing about investing in property is that you can buy according to your financial goals and personal lifestyle needs – presen...
04 Nov 2021

What South Africans need to know about UK Mortgages

Investing in property overseas is an excellent diversification tool, but the funding process can be tricky. Here are some things to consi...
04 Oct 2021

Birmingham’s Property Boom

If you’re looking to invest in property offshore you would be shrewd to consider Birmingham in the UK. “The UK is still the best buy-...