UNDERSTANDING THE TEMPLATES

This chapter will help you understand the templates but more specifically the variables isolated by this book.

Area: 1	BETHNAL GREEN
Catergory: 2	A
Postcode: 3	E2
In Congestion Zone: 4	No – 1.5 miles outside.
Parking and Traffic: 5	Permits & Meters. No significant traffic trouble spots.
Ethnicity Bias: 6	Asian
Investor Profile: 7	Pension, Business, Cash&Equity, University
Crime: 8	Violence		Sexual		Burglary		Motor
Per 1000 population: 9	35		2		10		27
Yield Range: 10	6.2%-9.9%
Price Ranges	Low £11	Hi £12		Low £pw13	Hi £pw14	Low15		Hi16
Studio flat 17	87,000	97,000		135	185	8.1%		9.9%
1 bed flat 18	95,000	175,000		175	260	7.7%		9.5%
2 bed flat 19	145,000	280,000		210	360	6.7%		7.5%
2 bed house 20	210,000	310,000		260	420	6.4%		7.0%
3 bed house 21	260,000	400,000		310	490	6.2%		6.4%
Valuations above the London average by: 22	-5.6% (£228,249)
	Actual				London Average
Capital growth last 12 months: 23	16.2%				20%
Capital growth last 48 months: 24	99.9%				48%
Tube: 25	Bethnal Green. Central Line (Zone 2) – 17 mins to Oxford Street
Demand For Letting: 26	Excellent
Average void period: 27	1 week
	Total (out of 10)			Capital Growth (out of 5)		Yield (out of 5)
Out of 10:	8 28			4 29		4 30
Summary: 31	Extremely close to the City with excellent rental yields – could be the next ‘Farringdon’.
Sought After Streets: 32	Corfield St, Millenium Place – Cambridge Heath Rd, Hackney Rd, Moravian St & Globe Rd.
Description: 33	I find this place amazing. It is a £3 cab ride or a 3 minute tube journey and you are in Liverpool Street, the heart of the financial capital of the world! Yet the area looks run down in places with only a few pockets of ‘nice’ areas. The nice areas being the old ex-local authority Victorian flats such as Corfield Street off Bethnal Green High Road which are no more than 5 storeys high, loft conversion flats springing up by developers from disused schools and warehouses and newly builds such as Millennium Place opposite Cambridge Heath Station. These areas are highly sought after by the young professionals who work in the city. This has led to both property and rental prices rising in proportion with each other hence the decent yields of nearly 10% in some areas. I think these young professionals do not mind taking the risk in living in these east-end ex-gangster type of areas as they get a lot more for their money. Shoreditch is only a brief stroll down Bethnal Green High Road and there they enter into trendy-bar city where other young professional 20-somethings meet up. Tenant demand will be strong if our financial economy is strong as this area relies on jobs being provided by the city. Currently the state of the financial economy seems good for at least the next 12 months but be aware this can change quite rapidly. In the last 6 years the number of jobs in London have grown by 17% but we are heavily linked to the US economy so it pays to keep abreast of what’s going on across the Atlantic. Queen Marys Hospital & College is a 5 minute walk and hence the area proves to popular with the medical students. The college is keen to hear from landlords as there is a shortage of student accommodation and offer a fee free tenant finding service. I think out of all the areas in London I think this area will be radically different in 20 years to what it is today. It is ripe for gentrification and is within distance of the burgeoning financial city to be gobbled up and turned in a support centre of hotels, restaurants and bars for international business visitors.
Estate Agents: 34	Name		Address		Tel		Web
	Land & Co		485-487 Bethnal Green Road, Bethnal Green, London, E2 9QH		020 7729 1815		www.landandco.co.uk
	W J Meade		492 Bethnal Green Road, London, E2 0EA		020 7729 4360
	Express Homes		2 Approach Road, Bethnal Green, London, E2 9LY		020 8981 8526
	Global Estate Agents		475 Bethnal Green Road, London, E2 9QH		020 7729 6767
	Cityfish Property Services		121 Bethnal Green Road, London, E2 7DG		020 7739 1414
	Hamilton Fox Estate Agents		488 Bethnal Green Road, London, E2 0EA		020 7729 8777
Letting Agents: 35	Name		Address		Tel		Web
	Alan Harvey Property Services		462 Roman Road, Bow, London, E3 5LU		020 8980 1111		www.alanharvey.co.uk
	W J Meade		490-492 Bethnal Green Road, London, E2 0EA		020 7729 4360		www.wjmeade.co.uk
	Londons People Property Services		41 Roman Road, Bethnal Green, London, E2 0HU		020 8981 9292
	Major Properties Ltd		71 Temple Street, London, E2 6QQ		020 7739 1600
	Stephen James		8a Hackney Road, London, E2 7NS		020 7739 4300
	Abiba Lettings		283a Kingsland Road, London, E2 8AS		0845 130 0225

Ref	Heading	Description	Why included
1	Area:	The area in the UK where the hotspot is.	You need to know where the hotspot is!
2	Category:	The quality of hotspot – see above under heading ‘What is a Hotspot’ for definitions.	Some hotspots are better than others. We have graded them to help you fit them in with your own personal goals.
3	Postcode:	The postcode sector the area falls into.	Postcodes can have a powerful impact on property prices. See power of postcodes chapter below.
4	In congestion zone:	Whether the area falls into the congestion zone charging zone and if not how far away from the zone it is.	The impact of whether an area is in the zone or not can be quite significant. See chapter on congestion zone below.
5	Parking & Traffic:	The availability of parking in the area.	Parking availability can affect property prices.
6	Ethnicity Bias:	Whether there is a significant ethnic community in the area.	To help the reader gauge the whole feel of the area.
7	Investor Profile:	The investor profiles in which the area is suited to. The seven types of investor are above – see ‘The Seven Types Of Investor’ for definitions.	Its no point looking at a hotspot if it doesn’t fit in to the type of investor you are. Ensure that the hotspot is relevant to you.
8	Crime:	Violence – Acts of violence against a person Sexual – Sexual assaults on a person Burglary – Burglaries from dwellings Motor – Theft of motor vehicles	Gives you an idea of the scale of crime in the area across the key types of crime that can affect property prices.
9	*Per 1000 population:*	The number of reported crimes defined above per thousand population.
10	Yield Range:	The range of yields that can be expected from this area. Yield being: (Annual Rental Income) divided by (Purchase Price of Property) x 100.	At a glance to see if the area can offer you the yields you require based on your investment plan.
11	Price Ranges - Low	The lowest purchase price expected for the type of property in question.	A guide price for the cheapest property available in the area.
12	Price Ranges - Hi	The highest purchase price expected for the type of property in question.	A guide price for the most expensive property available in the area.
13	Price Ranges – Low £pw	The lowest rental figure per week expected for the type of property in question.	A guide price for the cheapest rental figure available in the area.
14	Price Ranges – Hi £pw	The highest rental figure per week expected for the type of property in question.	A guide price for the most expensive rental figure available in the area.
15	*Price Ranges - Low*	The lowest yield expected for the type of property in question.	What you can expect in the worst case scenario.
16	Price Ranges - Hi	The highest yield expected for the type of property in question.	What you can expect in the best case scenario.
17	*Studios*	Studio flats have one room and a kitchen and a bathroom These are typically leasehold properties without gardens.	We have segregated the types of property for you to closer identify and analyse the property prices. Some yields are better for the different types of properties. This can then direct you to these type of properties thus maximising your possible yield.
18	1 bed flat	1 bed flats have a living room, a bedroom, a kitchen and a bathroom. These are typically leasehold properties without gardens.
19	2 bed flat	2 bed flats have a living room, two bedrooms, a kitchen and a bathroom. These are typically leasehold properties without gardens.
20	2 bed house	2 bed houses have a living room, two bedrooms, a kitchen and a bathroom. These are typically freehold properties with gardens.
21	3 bed house	3bed houses have a living room, three bedrooms and a bathroom. These are typically freehold properties with gardens.
22	Valuations above the national average by:	The valuation of the homes in the area relative to the rest of the UK. The calculation being: (Average Price of Property in Area – Average Price of Property in UK) divided by Average Price of Property in UK x 100	It’s a good benchmark to see how good the area is. If the valuation is above the national average then the area will tend to be a better area.
23	Capital growth last 12 months:	(Average Price for Quarter 4 2002 – Average Property Price for Quarter 4 2001) divided by (Average Property Price for Quarter 4 2001) x 100	Its good to see the growth that has occurred in the last 12 months – has it seen a boom? Has it not grown and ready to boom? Is it on the way down? But remember that past performance is no indication of future performance.
24	Capital growth last 4 years:	(Average Price for Quarter 4 2002 – Average Property Price for Quarter 4 1998) divided by (Average Property Price for Quarter 4 1998) x 100	Its good to see the growth that has occurred in the last 4 years months – Property is a long term investment. However you can still ask - has it seen a boom? Has it not grown and ready to boom? Is it on the way down? But remember that past performance is no indication of future performance.
25	Tube:	The nearest underground tube station in the area.	If an area is has a tube station it can have a massive effect on its popularity. See proposed tube stations chapter below.
26	Demand For Letting:	In our own professional opinion what we think the likely demand is for rental properties.	If you want a non-quantative opinion then here it is!
27	Average void period:	In our own professional opinion what we think the likely time the property will be un-let between tenancies.	If you want a quantative opinion then here it is!
28	Out of 10	Our own total score out of ten for the area based on capital growth and yield. See below.	Everyone loves a score out of 10. It gives you an idea of the quality of the hotspot in numerical format.
29	Capital Growth (out of 5)	Our own total score out of five for the area based on predicted capital growth.	Its why we invest – we want our money to grow. A simple score out of 5 should help you.
30	Yield (out of 5)	Our own total score out of five for the area based on actual yield.	Another reason why we invest – we want money now! A simple score out of 5 should help you.
31	Summary:	A brief summary of the area without needing to read the whole description below.	For the lazy. The area summed up in a nut shell.
32	Sought After Streets:	The best streets to buy in.	You need to know where to specifically look!
33	Description:	A full description of the area and why it is a hotspot.	For the serious. The detail for the area to help you make a more informed choice.
34	Estate Agents:	The estate agents that serve the area.	So you like the area – this is where you find the properties!
35	Letting Agents:	The letting agents that serve the area.	So you’ve got the property – you need to let it! These organisations will help you.

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