Introduction
Everyone we speak to is aware of the opportunities in UK residential property right now. But turning that into a moneymaking investment can be more difficult than it sounds. There is the issue of finding the right property, funding the purchase, refurbishing it, getting tenants in and managing the situation until a full market recovery brings the right exit strategy.
Doing all this at the same time as managing work and family commitments can be a tough call. Time flies when we’re busy and before we realise it the window of opportunity has closed. But the results of rushing into something without doing your homework can be even worse than the pangs of regret.
We know how you feel. Our portfolio of properties in the North of England that we bought in 2003 creates more work than a full time job. Thankfully we have Jonty's mum working full time, as well as managing agents on a 10% fee. Then there is the constant maintenance and accounts. The rewards are there but we often underestimate the work involved, not to mention putting a value on it. How many of us really put a price on our time?
Recently we have also been looking to diversify into the South East. It’s the obvious choice as is likely to see the first signs of recovery, has the highest population density and is the driver of the UK economy. But with all the overseas developments we personally take care of we were looking for an experienced company with the same attention to detail to do the groundwork for us. Not an easy task. But we have found that in Steve and David from Allied Land. They have 25 years’ experience in developments, including sensitive government projects. Their due diligence is right. They get things done.
It’s always important to check security and risk. The non-status, no-liability finance option, if chosen, operates more like a business loan so the bank effectively assesses the viability of each property, as well as all the usual independent surveys and valuations. The bank also insists on a one-year rental contingency. It might seem overly cautious but it’s actually a prudent step and the cost is included, along with all the fees, in the £20,000 minimum entry point.
We are confident that we have found the right product for the current market and have the right team in place to make it happen. These properties are built and ready to rent so give us a call if you would like to be involved.