How do I know the discount is genuine?

When we offer a property the valuation and rental estimate are thoroughly researched and the property secured.  When you reserve a property it is subject to an independent RICS valuation.  Should the valuation not meet the figure given then we will aim to reduce the price to reflect this.  Should this not be possible then the reservation fee will be returned in full.

Do you take any money upfront?

In order to safeguard both yourself and the motivated seller of the property, we secure the property with the vendor legally so they cannot pull out once you, the buyer have agreed to buy.

Likewise, we have to protect the vendor as their circumstances often dictate that they need to sell quickly which is why you are getting a discount!

For this reason we take a reservation fee, normally £1-2k which is fully refundable in the event that the RICS does not meet the valuation required to give you the expected discount.

What Fees are involved?

There are a few fees involved to complete your purchase. For example:

• Solicitors fees £1500 approx (this includes the vendors legals)
• Arrangement Fee 2% of valuation (maximum – no VAT payable as at July 11)
• Mortgage Broker fee £195 (approx)
• Valuation Fee £250 approx
• Stamp Duty (if applicable)

The above is an illustration to give you an idea. For each property we will give you a breakdown of the required costs to give you a more accurate figure.
I am concerned about managing a property when it is so far away!
This is a concern for most investors, every location has pro’s and con’s, some areas will offer lower yields but greater capital growth, others will offer higher yields, but lower capital growth. It is down to what the investor is looking for, but from our experience a good balance enables you to grow a portfolio in the safest way. We can help with the management of properties pretty much anywhere in the UK.

What is Yield?

Yield is generally calculated as a percentage based on the purchase price or valuation and the annual rent you can expect to receive.  For example: A property purchased for £100,000 with an annual rental of £10,000 will give you a 10% yield (£100k / £10k).

What is Capital Growth?

Capital growth is the potential growth of a property over a period of time, investors typically would like to see what growth they are going to make over a long term period.

What is Cash flow?

Cash flow is the money that you are left with on a monthly basis after deducting all the outgoings (mortgage payments, management charges,). Cash flow in a sense is looked at as your ‘net profit’.

What is Equity?

The equity is the difference between the value of the property and the purchase price.

What should I look for when purchasing a property?

As discussed above the equity, capital growth, cash flow and yield are the most important things. Unless you are very cash Rich it is important to not focus entirely on properties with low yields, even though you expect better Capital Growth from them! As a general rule of thumb, if your Gross Yield is lower than 6 or 7%, then too many of those could cause you problems in the event of voids and repairs.  A good balance is the key and we would be happy to discuss this in more detail should you need clarification.