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WHY
DO I NEED YOUR SERVICE? |
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Property
investment is a matter of the head and not the heart
- this is contrary to purchasing your own home.
I have seen many investors going it alone, making
the error of buying a property they liked or one
just down the road as they know the area. Similarly
many investors have been drawn into large discounts
in big schemes but found that when the property
came to the market to either sell or rent, the market
was saturated with similar units and sat empty for
long periods. Unless you have a great deal of time
on your hands, you are likely to spend a lot of
money buying a property that you think is a good
investment, rather than one that the market requires.
Your investment will not provide a return unless
it readily attracts tenants. |
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WHAT
EXPERIENCE DO YOU HAVE IN THIS FIELD? |
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As a previous Partner & Director
of a well-known letting agency I was responsible
for sourcing investment property for clients. I
have sourced over 50 properties for investment clients
with many returning to add to their portfolio. I
have an extensive understanding of the letting industry
which provides vital knowledge and know-how that
can only be obtained by working in this specialist
field. |
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DO
YOU RECOMMEND ANY PARTICULAR TYPE OF PROPERTY
OR AREA? |
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The type of property will depend on the area of
the search, and your requirements/instructions.
This could range from a traditional terrace property
to an off-plan apartment. You may wish to purchase
a property in an area of regeneration or prefer
an established residential district with a much
greater capital outlay. Your choice will generally
dictate the type of occupier from students or social
housing tenants through to corporate and professional
tenants. |
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DO
YOU PERSONALLY VISIT EACH PROPERTY? |
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Yes, this is an essential part of the search process.
It is important to get a feel for the area, as well
as assess each individual property. Off-plan properties
have a site visit - the property may appear fantastic
on the brochure but there maybe something undesirable
in the immediate vicinity. My experience as a letting
agent assists here in understanding what tenants
are looking for, and what in particular influences
the market in each town or city. |
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WHAT
DOES THE REPORT DETAIL? |
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Each report will provide the property address, asking
price, rental estimates, digital photographs (where
possible) together with sales agents particulars,
visual condition report and if appropriate improvement
recommendations for the local letting market. In
addition to this I will endeavor to provide a list
of similar properties in the market for sale and
rent, and what attracts the local tenant market
and the property’s proximity to these. |
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DO
I NEED TO SEE THE PROPERTY PRIOR TO MAKING AN
OFFER? |
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This is your decision. Many of my clients do not.
They see the property purely as an investment and
were either too far away or did not wish to get
“emotionally” involved. Remember contrary
to your own home property investment is a matter
of the head and not the heart - you may not wish
to live in your investment properties but that does
not mean that they make bad investments! |
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AM
I OBLIGED TO PURCHASE ANY OF THE PROPERTIES? |
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No. The search is restricted to five properties
presented for each search instruction. Please see
the Agency Agreement for full details. |
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DO
YOU HANDLE THE NEGOTIATIONS? |
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Yes, I will liaise on your behalf with the vendor/vendor’s
agent. If you wish you can be involved in the negotiations
following consultation over the strategy. |
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ONCE
I PURCHASE A PROPERTY WHO WILL LET/MANAGE IT FOR
ME? |
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As part of the service I will review and provide
a list of a number of letting agents in the area
and where possible obtain their terms and conditions
for you to choose. |
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SHOULD
I OBTAIN A MORTGAGE ON THE PROPERTY? |
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It depends whether you are seeking maximum income
or maximum gain. Unless you have bought purely for
the rental income, gearing your investment can provide
greater returns upon your money invested. For instance
if a property purchased outright at £68,000
grows in value to £80,000 then the capital
return on your money is 17.6%. If you obtained an
85% mortgage your initial investment is only £10,200
and your return is 117.6%. A geared property is
a form of investment where you can put a small percentage
of the capital value in but take 100% of the gain!
By gearing this example, you could buy up to 5 more
properties with the same cash resources as buying
one outright. |
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