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  • Published on: 14th September 2019
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EXECUTIVE SUMMARY

Real estate investment has becoming increasingly popular over the past years. It is a common investment vehicle that used by people to create the opportunity to gain profit. Real estate that can be invested includes residential, commercial, industrial, retail and mixed-use real estate investing. However, real estate investment involves a high cost of entry, a long investment period and a great uncertainty.

Liverpool as a modern global city, which is surrounded with new systems and international trade and capital in the past centuries. The architectural landscapes and planned development followed by modern infrastructure showed the growth and wealth of the people in Liverpool. There are up to £5 billion of capital projects delivered at Liverpool in the last decade and there are 2 enterprise zones including a University Enterprise Zone (Liverpoolvision.co.uk, 2015). Obvious transformation of Liverpool city center from the past 30 years can be examined through the leisure based revitalization of large sections of the vast derelict dock system, improvement of city center living, associated apartment development, new public spaces and etc. (Sykes et al., 2013). Nether less, Liverpool will be one of an ideal location for investor to play a role in the real estate market.

This paper will emphasise on buy-to-let property in Liverpool including residential and commercial property. Besides, 10 units of real estate will be acquired to the investor as well as the investment option available. Basic analysis of real estate in Liverpool such as SWOT analysis will also be displayed as well as the legal issue that the investor will face during the purchase of a buy to let property. The financing issues will also be portrayed as well as a suggested method for buy to let property will be shown with calculation. Lastly, a few marketing strategies will be explained for the investor to market his property depending on his budget.

TABLE OF CONTENT

1 DEFINITION OF INVESTMENT OPTION

The definition of investment option is a contract that is specially designed between two parties. The investor will offer the buyer the option to purchase a property, for a specified period of time at a fixed price. On the other hand, the buyer can choose to buy or not to buy the offered premises in a specified time period.

1.1 Types of real estate investment vehicles

Investment vehicles are the types of investment method that can be decided by potential investor to place his resources to.

1.1.1 Purchase of shares

The purchase of share is the purchase of part ownership of a particular firm in return of profits which is named dividends. The ownership also has the right to know the information of the firm and to vote for any decision in the firm that will have an effect on the operation. In this investment method, the shareholders will have a risk of the loss of their money while gaining the right to share in the firm's profit.

1.1.2 Purchase of bonds

The purchase of bonds refers to the debt given to raise the capital by borrowing for a period of time. It is guaranteed to repay the principal amount borrowed according to the interest on a specified date.

1.1.3 Purchase of debentures

The purchase of debentures almost has the same characteristic as the purchase of bonds. The purchase of bond and purchase of debentures can be differentiated by the securitization conditions. Principal and interest are payable with bonds, but in case of debentures, shares in terms of cash refunds of principal and interest may be offered by the company.

1.1.4 The savings with financial institution

The savings with financial institution is where the funds are deposited in a bank institution over a period of time which interest is paid depending on the rate of the bank institution.

1.1.5 Acquisition of real estate

Lastly, the acquisition of real estate which is a traditional form of real estate investment. There will be a few ways for acquisition of real estate, which includes the purchase or development of real estate for holding, purchase or development of real estate for sale and purchase or development of real estate for letting which is also referred to buy-or-develop-to-let. In this case study, the investor is using the purchase of real estate for letting because the investor intends to buy 10 units of business residential real estate in Liverpool and do not intend to sell the units in 15 years' time. The characteristic of acquisition of real estate includes it is a long-term investment in nature and it requires a huge capital to develop or purchase real estate. Besides, the sale and purchase of real estate will incur a high transaction costs which includes incidental costs such as stamp duty land tax and land registration fees.

1.2 Types of real estate investment risks

Risk in investment is defined as the probability of achieving a loss and the probability that the investor will not receive the expecting return from the investment. The risk in real estate investment can be categorized into systematic risk and unsystematic risk.

1.2.1 Systematic risks

Systematic risks are caused by uncontrollable changes such as economic drive, political and environment. These changes will affect all investment vehicles and the investor will not be able to have control over systematic risks. First of all, market risk is one of systematic risk that ties to the fluctuation in the market for investment whereas cyclical risk is related to the variations in the business cycle. Inflation risk refers to the uncertainty of the future power of the returns produced by investment. Interest rate risk is about the variability of interest rate and legislation risk is the possibility of changes in law that will directly affect investment returns. Unsystematic risks will only have effect on specific investment vehicles and the investor will have minimal control towards unsystematic risk.

1.2.2 Unsystematic risk

Unsystematic risk includes planning risks which will happen from local or regional level planning policies, liquidity risk because real estate investment is illiquid. Business risk, financial risk and taxation risk is also under categorized unsystematic risk.

1.3 Ratio of residential real estate to other types of real estate

According to Property Industry Alliance (2016), the commercial property accounts for 13% of the value of all buildings in the UK. However, residential property dominates the built environment with a value of £5,475 billion which is 6 times greater than the value of commercial property.

Source: Property Industry Alliance (2016)

Retail property such as shopping centers, retail parks, department stores and etc. occupies 41% of the commercial property in the UK. Following by offices, which is the second largest sector of commercial property occupies a 31% and industrial property 19%. The total value of commercial property has grown faster than inflation as shown in the graph below. The graph bellows shows that the value of the UK commercial property stock has grown with an average of 3.7% each year compared to RPI of 2.8%

Source: Property Industry Alliance (2016)

Besides, the following statistic derived from HM Revenue & Customs (2015) clearly showed the transaction of residential property and non-residential property in the UK.

Source: HM Revenue & Customs (2015)

As shown from the statistic above, the transaction of residential property in the UK is approximately 15 times greater as compared to non-residential property. By this statistic, we can determine that the ratio of residential property in the UK is a lot greater than the non-residential property such as commercial, industrial property and etc.

1.3.1 Level of demand and supply

As mentioned in Mistoria Estate Agents (2017), a new report from The Mistoria Group, which specialists in high yielding investment property in North West shows a surge of tenant demand across Liverpool up to 19% on yearly basis. There are about 60,000 student population in Liverpool and approximately 3/5 of them will require accommodation. According to the report, the accommodation rent for student in the city have risen 23% with an average of £128 per week as May 2017. The rental yields within one mile radius from universities are excellent, with an average of 13% return per annum (5% capital growth and 8% cash rental), commented by Mish Liyanage, managing director of The Mistoria Group.

The table below shows the average capital value and rent of property in Liverpool according to the Liverpool Property Guide from Onthemarket (2017).

Type Capital Value Rent

One bedroom flat £42,000 - £230,000 £450 pcm

Two-bedroom flat £80,000 - £500,000 £550 pcm

Two-bedroom house £45,000 - £750,000 £575 pcm

Three-bedroom house £50,000 - £1,000,000 £700 pcm

As said by Jenny Friar, Property Administrator at Marshall estate agents, there is a huge uplift in demand from investors that are interested in buy to let properties for the purpose of student accommodation and it will usually attract a great deal because the agreement will sustain for a minimum of 43 weeks every year.

2.0 LEGAL ACCEPTABILITY OF INVESTMENT OPTION

There will be ‘buy to let' mortgages which is specifically designed for the investor to buy to let investments. This type of mortgages will be required to comply with certain conditions because it usually involves a huge amount of money. For an example, a 75% mortgage can only be applied if the investor is over 25, and the annual income should be at least £35,000 with a condition that this is not the first mortgage of the investor. The investor will not be allowed to apply for the ordinary mortgage due to the clauses which will prohibit the landlord from letting out the property.

The landlord will be responsible for the safety of electrical equipment. These actions include that all the appliances in the premises are in good condition, checked if all appliances have the correct fuses installed and ideally having all electrical equipment inspected by a qualified electrician. Besides, the landlord will be required to ensure that some of the items in the premises are fire resistant. Typically, a label stating that it meets the 1988 safety regulations will be displayed in new furniture.

In most cases, the commonly used agreement for real estate acquisition and renting is an assured shorthold tenancy. Assured shorthold tenancy allows the landlord to regain possession of the property at the end of the tenancy agreement. The time lapse of shorthold tenancy varies from six months to three years. Landlord or the tenant will be able to terminate the agreement earlier if break clause is contained in the agreement. In any circumstances, the agreement should be written because it is a form of evidence and security for both landlord and tenant to fulfil their respective obligations.

With an assured shorthold tenancy, the landlord will be required to protect deposit using a tenancy deposit scheme. The tenant will be provided with the information relating to the deposit by the landlord within 14 days. There are three schemes that are authorized by the government which is the deposit protection service, MyDeposits and Tenancy Deposit Scheme. Landlord can use the deposit protection service to hold deposit in bank account and there will be no charge for both landlord and tenant for applying this scheme. Next, MyDeposit is an insurance based scheme that can be used by members of approved trade associations but a fee is payable to the insurance scheme. If anything goes wrong in the repay of deposit, the insurance will be responsible to recover the fee. Tenancy Deposit Scheme works the same as MyDeposits. The landlord will lose their right to recover possession of the property if the landlord fail to comply with the above scheme. The tenant is allowed to avoid the penalty if there is a dispute with a tenant provided if everything is done before getting to the court.

The landlord will be responsible to maintain the property in an acceptable standard for human habitation. In order to fulfil that requirement, maintenance of the exterior building, water, electricity and gas installations and plumbing fittings should be done by the landlord. If the property is rented out unfurnished, part-furnished or fully furnished, the landlord will be eligible to claim the costs that have incurred in the improvement or maintenance of the property. The landlord is also legally required to check on the gas appliances and electrical appliances to ensure that the building is safe to use. Most importantly, any repair obligations that are included in the tenancy agreement should all be carry out.

The rental income will be taxed on the profit made from residential lettings. Costs such as repairs and maintenance, costs of owning the property, costs of letting the property are allowed to deduct from the rental income. If a property is let unfurnished, part- furnished or fully furnished, the actual expenditure on repairs and maintenance can be claimed. For holiday letting, a special tax rule will be applied where the landlord is not allowed to claim a wear and tear allowance.

If the landlord decided to sell the property, the landlord will be liable for Capital Gains Tax (CGT) if the property is not the main home of the landlord. The taxable gain is based on the difference between price of the house and the original purchase cost of the house. The rates of 10% and 20% will be able to deduct from the tax from estate agents and solicitors' fees depending on the total amount of taxable income. In some cases, CGT can be deferred if the sales of the property are used to buy another property or in different investment.

3.0 REAL ESTATE INVESTMENT FINANCE

In real estate investment, it will require a huge amount of money for transactions. In this case, the investor will need to approach to another party in financing. There are a few sources of finance which includes bank and other institutions, retained profits, grants and public source of funds and joint venture partnership.

3.1 Bank and other institutions

There are a number of bank that can be categorized by high street banks, merchant banks and institutional investors. First of all, high street banks are large retail banks that gives services to ordinary people and business. Examples of high street banks include NatWest, HSBC, Barclays and etc. Merchant banks mainly deal with investment and commercial loans such as Barclays Capital, UBS and Schroders. Lastly, institutional investors will include insurance companies, unit trusts and pension funds.

Besides, building societies is an institution that offers savings and mortgage lending services. A finance house is a financial institution that will help investor in funding secondary leisure and retail markets.

3.1.1 Type of loans

There are different types of loans that are offered by bank and other institution to fit the investor's need. First of all, bridging finance or short-term finance is a loan that help to raise the real estate development costs over the development period. This type of loan will last up to three years and interest is added up until the development is completed. Next, syndicated loans is where an amount of loans is combined by a group of lenders to reduce the risk.

According to this case study, the investor has indicated that he would prefer a debt finance based on LTV ratio of 60% and the remaining will be financed from the past accumulated savings or the earnings from other investment vehicles that he holds. The mortgagee that will be recommended to the investor is by bank or other institution because the amount of money involve is huge. There will be are different types of buy to let mortgage that will be available and the investor can decide according to his requirements. The provider of mortgage will be further emphasis along with the 10 units of real estate picked for the investor.

3.2 Other types of finance sources

Retained profits is also one of the finance source that can be approached by well-established business and any profits remaining after deducting interest payments, taxation and dividends are reinvested in the business. Besides that, joint venture partnership involves when there are 2 or more parties undertake a project by combining their resources together. The benefits for this type of funds is that it will spread the risk associated with the project. During the process of the agreement, it is important that all the parties agreed with the level of funding to be provided by different parties, profit shares, decision making and etc.

4 Strength analysis of Liverpool

Liverpool is a city with unique attractions, musical heritage and exiting events. The strength of Liverpool is that the city is rich with culture, heritage and people with the largest collection of museums and galleries. A few of the famous attractions include Georgian quarter, waterfront, Baltic triangle, ropewalks and etc. (Visitliverpool, 2017). To travel around Liverpool is also relatively easy, there are options of rail, bike, bus, uber and ferry according to the requirements. The Merseyrail trains run frequently throughout the day across 66 stations in Liverpool area. There are also 4 city center underground stations which is the Lime Street, Liverpool Central, Moorfields and James Street. There are 2 main lines which is the Wirral Line and the Northern Line. Besides, there is cycle parking almost everywhere in Liverpool city, and it can be guided by Liverpool Cycle map. Liverpool also offers the CityBike, which is a bike hire scheme for people to collect and drop off a bike from most of the street stations. Travelling by bus is also very convenient and cost saving way for the people in Liverpool, there are two main city bus terminal which is Liverpool ONE and Queen Square.

Uber is a taxi service that is available in Liverpool and it is easily hired using their app which can be downloaded from Apple App Store or Google Play. This is a safe and reliable way to travel around Liverpool. Lastly, the Mersey Ferries that is recommended to all the travelers in Liverpool to cross over to Wirral Peninsula to Port Sunlight Village and Lady Lever Art Gallery while enjoying the on-board commentary.

There are 4 universities in Liverpool, which is University of Liverpool, Liverpool John Moores University, Liverpool Hope University and Edge Hill University. The universities provide education for people in Liverpool, as well as people from out of Liverpool. There are also a flagship Central Library located in Liverpool city center which provides the members access to a wealth of books, films, audio and reference material. The register for member is free of charge for all students and operated by Liverpool City Council (Liverpool City Council, n.d.).

As mentioned by Lorna (2017) from Liverpool Echo, Liverpool has been ranked in the country's top city to find a job in 2017. The vacancies increased by 23% from 2015 to 2016 but there is a fierce competition with a 24% rising of job applications in 2016. Hundreds of jobs that could be created in Liverpool at a planned £20m industrial park. “Liverpool is one of the largest cities in the UK so it's fantastic that there are some great job opportunities for candidates this New Year, across some of the city's core sectors” said by Lee Biggins, the founder and managing director of CV Library (Lorna, 2017).

4.1 Weakness analysis of Liverpool

There is a wealth gap, productivity gap and income gap in Liverpool City Region. The city's GVA per capita is around three quarters of the national figure and the second lowest figure of 11 second tier city regions. The level of economic inactivity also contributes a significant productivity gap in comparison with the national and other second tier city regions in relation to population despite the recent growth in output. In terms of public sector, the industrial structure plays an important role but it does potentially strong niches in the latter. The contract between public and private sector has grown in recent years and its business birth and death rate is below the national average. The income gap also partly reflects the economic with relatively low household incomes (Micheal and Richard, 2016).

It is mentioned by Brandon Lewis (2017), the parliamentary Under Secretary of State that the Liverpool City Council has the worst council tax arrears in the country, which is equivalent to £528 per dwelling. In relation to the expenditure of £2 million on Beatles memorabilia, Liverpool City Councillor and Chairman of Merseytravel, Cllr Liam Robinson, has publically admitted that the interest of the taxpayer was not well served in the original negotiation. In the year that the Merseyside Passenger Transport Authority authorised the funding, the Authority issued a levy of £35.5 million on council tax payers through Liverpool City Council.

4.2 Opportunity analysis of Liverpool

The Liverpool City Region leaders can help to create, attract and retain better jobs for the people in Liverpool by raising skill levels and retain skilled people. In a way it could also increase the connectivity among different sectors which will encourage more innovation that can help in improving place quality (Micheal and Richard, 2016).

From the year of 2017, Liverpool City Region's Combined Authority and elected City Region Mayor will receive powers and responsibilities to help the people in Liverpool in economic performance. The responsibilities include skills, employment, innovation, energy and environment and etc. that will gain new fiscal powers and create more resources in a long run. This is a devolution that could help the city to make progress and give the city regions to take control of themselves (Micheal and Richard, 2016).

4.3 Threat analysis of Liverpool

The government has recognized the prospects of success of city region contributing to the national economy will be better if they were given greater control over the policies. Therefore, the city regions are given the chance to have a greater control over decision makings over national control. The new government policy has created opportunities as well as threat. First of all, the government have different aims which could result in changes of policy over the time. It will be challenging to adapt the new policy at a short period of time. The principle of local authority level and governing city regional will be different. This will have an impact to many people and places due to the difference of culture. Also, the city regions will experience a deduction of budget from the government and being expected to do new things. The whole process is being processed in a high speed by the government they the city regions will need to respond to the government upon the local agreement. All of these involve in complexities and challenges for Liverpool City Region (Micheal and Richard, 2016).

4.1 Marketing strategy

5 Subject property and Comparison property

All the property found is from rightmove.co.uk, it is a platform for buyers and sellers to promote their properties and to search for properties to buy/let. The basic info of the property will be provided in the website including the value, rent, location, facilities and etc. As requested by the investor, 10 properties will be selected in Liverpool including residential and commercial and to be further determine with its viability for investment.

Subject property 1

A freehold 3-bedroom terraced house located at Grant Avenue, Liverpool, Merseyside is for sale £195,000. This is a mid-terraced house that is situated on Grant Avenue with beautiful park views. A few minutes' walk to Allerton Road with restaurants and shops. The property is fully refurbished with new kitchen and bathroom. Besides, it is fully wired with a new central heating. To the rear is an open plan dining room/kitchen and upstairs are three well-proportioned bedrooms with a new family bathroom. The nearest station from the subject property is Mossley Hill (0.9 mi away) and Wavertree Technology Park (1.0 mi away).

A similar 3 bedroom terraced house located at Alderson Road, Wavertree, Liverpool which is not far from the subject property is found to be rented at the price of £525pcm. The property is convenient for local amenities and good transport links into the City and South Liverpool. There are two reception rooms, kitchen three bedrooms and a family bathroom with shower. There are also Upvc double glazing and a gas central heating system in this property. The nearest station from the property is Edge Hill (1.4 mi away) and Wavertree Technology Park (1.7 mi).

As a comparison with the subject property, the comparison property is unfurnished, and for the subject property, the kitchen and bathroom is newly furbished. They both have gas central heating and a bathroom to share. Therefore, the rent for subject property is estimated to be £550pcm after adjustment.

Source of property 1

Subject property: http://www.rightmove.co.uk/property-for-sale/property-51814719.html

Comparison property: http://www.rightmove.co.uk/property-to-rent/property-51902169.html

Subject property 2

A freehold 4 bedroom detached house is for sale in Maryton Grange, Calderstones, Liverpool L18 for £1,150,000. This is a luxury property contains a grand entrance hall along with a stylish family lounge, dining room and a modern breakfast kitchen. The first floor plays host to substantial sleeping quarters in the form of four spacious double bedrooms and the master bedroom enjoys a four piece ensuite bathroom and a walk in dressing area. Besides, there are also mature front and rear gardens, a double garage and a driveway outside of the property. The property also benefits from double glazing and gas central heating system. The nearest station from the subject property is West Allerton (0.8 mi away) and Mossley Hill (1.0 mi away).

A similar 4 bedroom semi-detached house is found to rent at Storrsdale Road, Mossley Hill, Liverpool, L18 7JZ at the price of £1,250pcm. This property is partly furnished featuring a modern fitted kitchen dining area, convenient utility room and downstairs washroom. Besides, there are off road parking and expansive rear garden. The nearest station from the property is Mossley Hill (0.4mi away) and West Allerton (0.5 mi away).

As a comparison with the comparison property, the subject property is fully furnished and it is a detached 4 bedroom house. Whereas the comparison property is partly furnished and it is a 4 bedroom semi-detached house. Therefore, the estimated rent for subject property is adjusted to £2,800pcm.

Source of property 2

Subject property: http://www.rightmove.co.uk/property-for-sale/property-59087875.html

Comparison property: http://www.rightmove.co.uk/property-to-rent/property-62912932.html

Subject property 3

A freehold 3 bedroom flat is for sale in Old Hall Street, Liverpool L3 for £1,000,000. It is a luxury deplex apartment with stunning sea and city views. Ideally located for Liverpool city centre, restaurants and shops with Liverpool One is just a few minutes' walk away. This apartment offers spacious rooms including a entrance hall, washroom, open living and dining room. There are two large bedroom in second floor with en-suites and dressing rooms and a utility room and second washroom. Besides, there are also private secure parking included with the property. The nearest station from the subject property is Moorsfields (0.3 mi away) and James Street (0.5 mi away).

A similar 3 bedroom duplex apartment located in 15 Mann Island, Liverpool with stunning river view is found to rent at the price of £2,000pcm. This duplex apartment is fully furnished including a large lounge, galley kitchen, master bedroom and en-suite bathroom to the upper floor with doors in lounge and bedroom opening to the large terrace. There are two bedrooms and a family bathroom located downstairs along with storage cupboard, washer/dryer. Secure underground parking is also included with the property. The nearest station from the property is James Street (0.1 mi away) and Moorsfields (0.4 mi away).

As a comparison, both of the property offers secure parking and basic utilities in the property and they both located in similar location. In this case, no adjustment is made for the estimated rent for the subject property, which will be same as the comparison property £2,600pcm.

Source of property 3

Subject property: http://www.rightmove.co.uk/property-for-sale/property-51025476.html

Comparison property: http://www.rightmove.co.uk/property-to-rent/property-62143486.html

Subject property 4

A freehold 3 bedroom apartment is for sale in Beetham Tower, Liverpool with the price of £750,000. This property is a stunning 3 bed duplex penthouse apartment and it offers incredible city and river views. It has a large open plan living space with two bathrooms and en-suite rooms. There are four allocated parking spaces, lift access and concierge service included with the property. The nearest station from the property is Moorfields (0.3 mi away) and James Street (0.5 mi away).

A similar 3 bedroom flat located in The Anchorage, Liverpool, Merseyside, L3 is found to rent at the price of £995pcm. The property is fully furnished and it features a good-sized living room, kitchen, dining area and bathroom with toilet, sink and shower. There area also off-road parking included with the property. Besides, there are also balcony off the living room. Electric heating and double glazing is also included in the property. The nearest station from the property is Brunswick (0.8 mi away) and Liverpool Central (0.9 mi away).

As a comparison, the subject property is a 3-bedroom duplex penthouse apartment whereas the comparison property is a 3 bedroom flat. They both are fully furnished with parking included with the property. Subject property is located slightly further from the city center as compared to the comparison property. Therefore, the estimated rent for the subject property is £2,200pcm after adjustment.

Source of property 4

Subject property: http://www.rightmove.co.uk/property-for-sale/property-51356109.html

Comparison property: http://www.rightmove.co.uk/property-to-rent/property-70021916.html

Subject property 5

A freehold studio flat for sale in Plaza Boulevard, Liverpool, Merseyside, L8 at the price of £109,995. The property is a luxury studio which is situated the heart of Liverpool city centre. Famous landmarks and shops are within walking distance from the subject property. The property is fully furnished with a double bed. The nearest station from the subject property is Liverpool Central (0.8 mi away) and Brunswick (0.8 mi away).

A similar studio flat for rent in One Wolstenholme Square, L1 4LH for £575pcm. The property is fully furnished with a built in wardrobe. The property features a high gloss kitchen and luxurious bathroom finish. Shopping center is located two minutes from the door step so it is very convenient for the tenants. The nearest station from the property is Liverpool Central (0.2 mi away) and Liverpool Lime Street (0.4 mi away).

As a comparison, the subject property and comparison property both is fully furnished and located in city center. Therefore, the rent adjustment is not made for the subject property, it will be remained as £575pcm which is the same as the comparison property.

Source of property 5

Subject property: http://www.rightmove.co.uk/property-for-sale/property-70026872.html

Comparison property: http://www.rightmove.co.uk/property-to-rent/property-69598343.html

Subject Property 6

A freehold convenience store is up for sale at Dawn till Dusk, 188 Boaler street, Liverpool, United Kingdom, L6 6AD at the price of £279,950. The property is 1.9 miles from Liverpool City Centre and close to all major motorway networks. The well-maintained retail area is approximately 1,000 sq ft with tiled flooring and suspended ceiling recessed lighting. The retail area is fitted with racking for the display of goods such as household products, confectionery, bakery goods and etc. The trading shows an average weekly turnover of £9,000 per week excluding services.

A similar shop is found to rent in Stanley Road, Bootle at the price of £550 pcm. The property is unfurnished and located close to Bootle Strand in the well established commercial centre of Bootle. The property benefits from excellent transport links with Bootle New Strand railway station and local bus services situated within close proximity. A electric shutter is included with the property.

As a comparison, the subject property is fully furnished and the comparison property is unfurnished but they both situated at high street. Therefore, an estimated rent for subject property is £700pcm after adjustment.

Source of property 6

Subject property: http://www.rightmove.co.uk/commercial-property-for-sale/property-61376287.html

Comparison property: http://www.rightmove.co.uk/commercial-property-to-let/property-51833538.html

Subject property 7

A freehold office is for sale at Stratford House, 149 Stanley Road, Bootle, Merseyside, L20 at the price of £350,000. The property sized at 3,208 sq. ft. There are 9 parking spaces available and the office is suitable for variety of uses/redevelopment and there is a potential for residential conversion. The nearest station is Bootle Oriel Road (0.2 mi away) and Bootle New Strand (0.4 mi).

A similar office is found to rent in 1 Old Hall Street, Liverpool, L3 at the price of £758pcm. The property is 5,051 sq. ft. and situated directly opposite Moorfields station in the commercial district. It is refurbished to a high standard, with air conditioning, heating and cooling units. Generous kitchen and rest room facilities is included in the property. The nearest station to the property is Moorfields (0.2 mi away) and James Street (0.2 mi).

As a comparison, the comparison property located nearby the ciry centre of Liverpool where as the subject property located far from the city center of Liverpool. There are also a size difference between these two property which the subject property is 3,208 sq. ft. and the comparison property is 5,051 sq. ft. which the bigger size will be more favorable. More facilities are also provided in the comparison property as compared to the subject property. In this case, the estimated rent for the subject property will be adjusted to £750pcm after comparison.

Source of property 7

Subject property: http://www.rightmove.co.uk/commercial-property-for-sale/property-61774579.html

Comparison property: http://www.rightmove.co.uk/commercial-property-to-let/property-41861374.html

Subject property 8

A freehold high street retail property at school road, L38 is up for sale at the price of £385,000. The property is a busy convenience store which located in excellent main road location within a large number of quality residential dwellings. Besides, there is a one bedroom flat above the business. The business operates from highly visible fronted semi-detached shop premises, which is presented with an excellent range of fixtures and fittings to go with sale. The annual turnover of the business is approximately £430,000. The nearest station from the subject property is Hightown (0.1mi away) and Hall Road (1.9mi away).

A similar high street retail property is found to rent at North Hill Street, Dingle, L8 at £433 pcm. The property is sized at 37 sq.m. The property is unfurnished and ideal for beauty salon, tattoo, nail bar and etc. There are kitchen and washroom facilities included in the property. The property offers an electric roller shutter and suitable for a variety of uses it is situated close to Liverpool City Centre. The nearest station from the property is Brunswick (0.7 mi away) and St. Michaels (1.0 mi away).

As a comparison, although the subject property is located away from the Liverpool, but the subject property is fully furnished and it is bigger as compared to the comparison property. Besides, the subject property also offers a one bedroom flat above the business. Therefore, the estimated rent for the subject property is £1,000 pcm after adjustment.

Source of property 8

Subject property: http://www.rightmove.co.uk/commercial-property-for-sale/property-64880765.html

Comparison property: http://www.rightmove.co.uk/commercial-property-to-let/property-51268188.html

Subject property 9

A freehold 2-bedroom apartment at Parliament Street, Liverpool, Merseyside, L8 is up for sale at the price of £154,950. The property is situated minutes from Liverpool one, Albert Docks and World Heritage Waterfront. The property features winter oak laminate wood flooring, eco electric heating, hot water cylinder and mains wired smoke alarms for safety purposes. The building offers a 24-hour concierge and 24-hour gym. The nearest station from the property is Liverpool Central (0.7 mi away) and Brunswick (0.9 mi away)

A similar 2 bedroom flat at Devonshire Road, Cavendish Gardens, L8 3TH is up for rent at £725 pcm. The property is fully furnished and close to local amenities. The property includes private access to princess park. It is close to the lark lane which is a hotspot for shops, café's, restaurants and bars. Gas central heating and double glazed is installed in the property. The nearest station from the property is St.Micheals (0.8 mi away) and Brunswick (0.9 mi away).

As a comparison, the subject property is located in the heart of Liverpool city centre and the comparison property is located slightly further from the city center, they are both fully furnished. The subject property offers more facilities such as 24 hour concierge and 24 hour gym, as compared to the comparison property. Therefore, the estimated rent for subject property is £745pcm after adjustment is made from the comparison.

Source of property 9

Subject property: http://www.rightmove.co.uk/property-for-sale/property-70121840.html

Comparison property: http://www.rightmove.co.uk/property-to-rent/property-62982577.html

Subject property 10

A freehold 3 bedroom terraced house at Burton, Imagine Park, Speke Hall Avenue, Speke, Liverpool, L24 is up for sale at the price of £145,995. The property offers a lounge, dining area with French doors opening out to the rear garden. There are kitchen and washroom located in the ground floor of the property and two double bedrooms, one single bedroom, shared bathroom and a master bedroom with ensuite shower will be found upstairs of the property. The nearest station from the subject property is Hunts Cross (1.6 mi away) and Liverpool South Parkway (2.0 mi away).

A similar 3 bedroom terraced house in Hansby Drive, Liverpool, L24 is up to rent at the price of £625 pcm. The property is unfurnished and it consists of entrance hallway, ground floor washroom, modern fitted kitchen, utility room and dining room. There are a bedroom and a lounge at the first floor and master bedroom with ensuite, bedroom and a family bathroom at second floor. The property includes a central heating and double glazing and secure parking. The nearest station from the property is Hunts Cross (0.4 mi away) and Liverpool South Parkway (1.3 mi away).

As a comparison, the subject property is fully furnished and the comparison property is unfurnished. They both consist of a ensuite bathroom for master bedroom and a shared bathroom. The subject property and comparison property located not far for each other. Therefore, the estimated rent for the subject property is adjusted at £655 pcm. After adjustment is made.

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