RESIDENTIAL | COMMERCIAL | INVESTMENT TQ Connect
Buying a property will be one of the major investments in your life. You will always want to ensure that the property is good value for money; that it is in the right location; that it’s structurally sound; that the finances are in order; that the lawyers are happy with it.
When you buy a property for investment purposes, however, you will be driven by slightly different factors to a dwelling for you and your family to live in. You may not even have seen the property due to its distance from you; if so you need to be able to trust the selling agents as well as the developers. Your main priorities will normally be to get a good return, over and above a bank deposit account; competent management of the tenant and the property; and a secure knowledge that you can exit when you want to.
If you are looking for a guaranteed yield period, then you will looking for the best investment scheme having applied the factors outlined above, in particular the credentials of the agent and the solicitor. Some deals look too good to be true; you will want to be satisfied that the agent has played ‘devil’s advocate’ and vetted the financials and the status of the developers themselves and can still support it.
When you get the paperwork from your solicitor, you will find that it is bulky and probably hard to understand – you will need to have the confidence that your solicitor has been through it all with a fine tooth comb and is happy with recommending it to you. A typical investment scheme purchase is far more complex than a conventional buy to let and requires specialist lawyers to handle it. Their job will be to summarise the complexities of the title into plain, simple English in as short a format as possible so that you can understand at a glance the points you need to know about.
You will be under time pressure to exchange and will want your solicitor to be efficient and responsive and be mindful of the timescale. If you have concerns and need to raise questions, you will expect a prompt and full response from a seasoned professional. You will of course expect any deal you have done with the agents to be enshrined in the legal paperwork.
Some deals have exit strategies, called ‘Pre-emptions’, ‘Call Options’ or ‘Put Options’. Again you will need to know exactly what these entail so you can address any possible downside.
In recent years, investment scheme purchases have been increasingly popular and have been a good investment for many buyers. The key is trust; trust the competence of your agent, the developers and your lawyers and you will have the best possible chance of making good money with a secure exit.