We have been sourcing investment properties for 5-6 years now - in the UK and Overseas - and have completed on over 1000 deals for clients - as well as over 100 of our own, so we would say we are pretty experienced!

While many of our competitors have gone out of business during the credit crunch, we have managed to continue going from strength to strength.

Why is that?

Well we have always been very consistent in what we have looked for, first and foremost for ourselves as an investment, and secondly for investors we source for.

So what are our key points to always look out for?

One of the Fatal Mistakes we see investors make is "Not Having a Clear Strategy and Getting Easily Distracted"

Too many investors buy because someone tells them the property will go up in value or they will be given a perceived discount, and not because it will help them achieve their goals.

Are you buying for yield?

Speculation on cap growth?

Or to add value?

Too many investors buy without having a clear strategy, or buy the wrong type of investment for them ie they want income but buy an off plan property that requires a 30% deposit and 10% buying costs, tying up all of their savings - and do not realise until further down the line. Or buy a buy to let and then realise do not like the idea of being a landlord!

They can also have a perfectly reasonable strategy, which is working for them ie buying buy to lets for around £60,000 in their local area, and suddenly get distracted by a sexy new deal, buying a very expensive villa in Dubai, or a discounted apartment in Spain which does not fit into their overall strategy.

Or buying a renovation project without the skills or adequate funds to complete.

It is vital that you plan out your strategy before start buying. Ie how much time do you want to put into this, how much in terms of funds, what skills do you have, what timescales are you working to?

Too many people go with too wide an investing strategy, for example I know investors who have bought individual properties in 5-6 countries which I would think is too many. They may be good deals,
but can be difficult to manage all the legal/tax and finance issues - I would aim to go with 2 or a maximum of 3 types of investments at a time, as it is easier to keep an eye on the overall market
this way. It is better to become an expert in 2 or 3 markets than spread yourself too thin over 5-6 markets, whether it is buy to let/buy to sell/overseas.

Part of your strategy should also include looking at exit strategies ie when do you plan on holding on until - what triggers will make you want to hold or sell?

How soon wil l /may you want out, and how easy will it be to realise your profits?

For example what may seem an excellent purchase when you buy may be difficult to sell on, which would mean it is difficult to realise your profits. For example purpose built hotels or student accommodation, where you can buy a room may give a good rental yield but not have a strong re-sale value. If you suddenly need to sell up - will there be buyers ready to snap your property/room up?
Or many apartment blocks in UK and overseas are sold purely to investors. This means all may have similar investment strategies ie buy to rent or sell, and could be a large number trying to sell at once. This again will affect the re-sale value, purely down to supply and demand.

It is often best to target an area where is a good mix of local owner occupiers and investors - so there will be a good mix of strategies and you will not be competing with many others all with the same strategy.

For this reason it can be better to target smaller developments, as are less likely to attract the large numbers of investors, or investment clubs that look for 30-50 apartments at a time.

Some areas will see an immediate increase in capital growth, whereas some will be more of a case of hold for 3-10 years to see the best levels of growth. You need to be aware of this before buy and also be sure about how desperate you may be for the money you have tied up. If you think there is a chance you may need to call on this money sooner rather than later, you need to ensure there is a strong exit strategy or you will become desperate to sell, and therefore not be able to sell at such an attractive price.

So considering your strategy at the start is very important - you should consider:

How much do you want to invest?

What are your goals? Over what time period?

How much time do you want to put into this?

What will your exit strategy be?

So make sure you take this into consideration when starting out! We aim to build portfolios in certain parts of the UK or the world, and can take care of ongoing management afterwards.

Armchair Investing Service

We offer investors an "Armchair" style service that can help them carry on with their busy lives but also help kickstart their investing and build up some significant equity!

We have put together 2 basic packages for investors to sign up to, where perhaps you are too busy to check every deal for yourself or would like to make sure you are not left behind and actually achieve the goals you want to achieve!

Package 1
For just £23,999 + VAT, we will:

1. Choose you 4 properties with £80,000 equity within the next 6 months
2. Help with the full buying and management process
3. Go for positive cashflow properties
4. Give an excellent mix of properties!

Package 2
Or for £43,999 + VAT, we will:

1. Choose you 8 properties with £160,000 equity within the next 9 months
2. Help with the full buying and management process
3. Go for positive cashflow properties
4. Give an excellent mix of properties!

This allows you to build up a huge nest egg, or pension while you carry on with your busy lives, knowing you are going a long way to securing your financial future!

Let's look at the return on Investment

Invest £24,000 - buy 4 properties at an average of £80,000 (purely for this example) with £60,000 mortgage. Immediately turn £24,000 into £80,000. This includes all buying costs!

Let's say in 5 years time prices have risen just 2% per annum.

Each property is now worth approx £90,000.

Your £24,000 is now worth £120,000, assuming a neutral cashflow (in reality would expect this to be positive).

So if you have a 5 year plan, can turn £24,000 into £120,000 ie sell properties at realistic prices of £90,000 each after buying costs.

Let's say you have a 10 year plan

Let's assume properties rise at say 3% per annum from years 5-10. Remember while 3% seems a low rate you have a highly leveraged property so your return is much higher.

So in another 5 years properties are at an average of £105,000.

This adds another £60,000 onto your return.

So your £24,000 investment is now worth £180,000!

Powerful?

This shows the importance of buying just now and maximising your returns! And most importantly the importance of looking at your investment as a 5 or 10 year investment. Remember while prices may seem low just now, anyone that bought property 5 years ago should still be well up overall on their return on investment.

So if you don't have a pension but have some funds to invest, surely this shows what a huge opportunity there is right now in UK property!

Turn £24,000 into £120,000 after 5 years or £180,000 after 10 years!

For more information or for a free one-to-one consultation with myself Alan, enquire here with the type of deal that is attractive to you and we'll get back in contact with you asap.

Alternatively you can call us on 0115 9853963 today!