Property Investment

Property Investment

How To Start Out In Property Investment

One of the best ways that you can make money is through property investment. People will always need homes, and with a growing population, and a shift in the way that people choose to live in recent decades means that the demand for houses does not seem to be slipping. 

If you have decided to make money from property, you will need to have a jumping-off point. Getting into the market can be tricky, and you will invariably need to get some capital to start off. Ideally, you will have some money saved up. You may want to partner up with someone else and pool your resources, at least for your first couple of projects. This is an excellent way of starting smaller before reinvesting your profits into bigger, better projects. 

Buy At Auction

Buying at auction is one of the best ways to obtain a development property. Often, when a building falls into a state of disrepair, a survey would advise a mortgage broker against offering a loan against it. This makes the property hard to sell on the open market, as it will only suit a cash buyer. By going up for auction, it will make the property a more financially viable option for a developer because it has the potential to sell for much less than it might normally do. 

You may ask yourself what is the modern method of auction?’ and you will happily discover that you can now bid online for homes, meaning you can look at buying property across a wider distance and not have to invest too much time into options that inevitably do not pay off. 

Work Out Your Project Budget

You will need to have a budget for your development property. The amount that you pay for the property will dictate the amount that you can spend on renovating it. You will want to get a reasonable profit on the home, and to give an indication on the final selling price you should look at listings for similar properties in the area to gauge the value.

Have a look at the big wins that you can make in restoring the property. Do the major jobs that will add the most value first. If the home needs a new roof, start there. If it needs rewiring the most, then this may be a significant area of concern. Working out where your priorities lay is essential when it comes to maximizing the potential value of the home. Remember that you will need to ensure that the house is in a good enough state to pass a survey and be sold by an estate agent. 

Who Should Do The Work?

If you can do the work, then this may well save you quite a bit of money. However, if you are not great at DIY, then you should leave well alone and hire a contractor. You may find that your mishaps could cost you dearly and will need repairing by a professional.   







Investerge, ‘The Real Estate’ to launch their new digital marketplace at the Property Investor show

The business was announced just 3 months ago by Richard Jacques, the ex-Lettings Director of Purplebricks and will be launching its full range of services at the Property Investor Show

Richard Jacques said:

Investerge is ready to welcome investors, brokers and agents via our new online platform. We have been working flat out to deliver the tech and we are incredibly excited to offer a special preview of the new interactive website at the show’’

He continued,

“Our marketplace creates a seamless solution that combines smart technology, experienced investment partners and global investment opportunities. Combining these elements allow property investors a one stop shop from search to sale. It’s this macro view of the market twinned with the all-important micro detail that will improve transparency, education and opportunity. The Property Investor and Home Buyer show is the first ever event for Investerge and it will be invaluable to gain first hand feedback from Investors and professionals working in the property sector”.

Investerge – Background

Investerge is a new concept, a new business and marks the start of a new era for the property investment sector.

Launched by Richard Jacques, an industry disruptor who was behind Purplebricks. This new ‘digital’ business unites property investors, introducers and brokers through a central platform, offering a greater range of global opportunities combined with a tailored hands on education programme. Introducers are given a solution which allows them to offer a new service for their investment customers, Property Brokers are given a platform to find investors and Buyers now have one central place to search and to buy all under one roof.

Investment opportunities will be curated by the Investerge ‘Concierge’ team and delivered seamlessly via the website dashboards. This will be accessible to registered investors who have advised their Investerge concierge partner on their individual overarching strategies. The curated approach allows off-market investment opportunities to be confidentially released to those investors most likely to be interested and ready to buy.

Investerge will also offer online conveyancing, finance, surveys, refurbishment and rental solutions which is all part of their seamless search to sale ethos. Unique to the service is the way the Investerge business model allows all property sector players to partner via the marketplace. Estate Agents and independent financial advisors can refer clients confidentially and gain a share of commission from every successful buyer purchasing a property using the marketplace.

Property brokers can upload opportunities and instantly find interested pre-vetted potential investment buyers who are matched by the system and overseen by the Investerge concierge team of professionals.

Original Source PRFire.com

Property Investment in Three Simple Steps

Property investment is one of the most complicated and difficult things to do right? Well, most people seem to believe so. Unbelievably it isn’t as twisted and difficult as some may believe and the difficult jobs, you can contract out.

Below are three simple steps every first-time investor should consider to make life a whole lot easier

It’s Not Just For The Rich

Gone are the days when property investment was for the rich only. Providing you have a good knowledge base, a small cash injection and a bit of know-how, you can make your way into property investment. First and foremost, there are a few options when it comes to purchasing your first property if you aren’t surrounded by funds. You can mortgage, which is usually the main option. There is however another way, there are property management companies out there that will want to help people like you get into property investment, why? Because it’s financially beneficial to them.

There will always be an agreed time frame between yourself and your matched investor. Once the house is sold, your investor will take their agreed-upon profit and you will take yours. You may not make as much as you would if it were solely you, but considering interest rates, you may have just made an amazing step forward.

Putting in the Ground Work

When purchasing a property, whether it be for investment purposes or not, there is always a lot of ground-work and checks that need to be completed. Even things such as land registry, underpinning, chancel checks, and a Building Survey can go ignored. They really shouldn’t. Remember, you are purchasing these properties for the purpose of resale, ignoring any of these could result in a rather nasty shock when it comes to releasing the property.

Checking the internal integrity of the property is something you should absolutely do yourself and with some of your trusted contractors. Your trusted contractors are the ones who are after all going to be undertaking any of the renovations the property requires, so ensuring they don’t come across any little shocks is a great way to start.

The Selling Time

The number one issue when it comes to selling a house is trying to please everybody. Put simply, trying to alter the aesthetics of the property for every buyer is an almost impossible task. Yes, that’s right almost impossible. Unbelievably, there are some companies out there that specialise in home staging. 

Home staging is a simple, yet brilliant idea, you rent the furniture from the home staging company, who will advise according to the layout of the property and they will turn your investment into a show home. They pay attention to every detail, as does your buyer. When a potential buyer comes to look at a property, they associate what is in the property, to what could be in the property. If you show them a shell of a house, it doesn’t enable them to capture the warmth of what could be their first family home.

So with these few simple steps hopefully you can get onto the investment ladder and start turning a profit in no time at all. 

 

Keller Williams partners with Investerge the UKs only property investment marketplace

Keller Williams, the world’s largest estate agency, has entered into a partnership agreement in the UK with start-up Investerge to widen their service offering, giving their customers access to the Uks only property investment marketplace.

Investerge, a new UK start-up, created by Richard Jacques, the ex-lettings director and head of property investment for Purple Bricks, is an online investment marketplace set to provide a portal for both national and international un- advertised investment properties across the buy-to-let, HOM, and commercial sectors.

Jason Cannon, Operating principle, Keller Williams:

Our mission has always been to become life-long partners to our clients and provide them with knowledge and advice whether they are buying, selling or investing. We are known for our residential expertise around the world and the quality of our staff all of whom are all trained by the Keller Williams academy. Each KW agent operates as a single business supported by the KW branded service administration. With the recent opportunities and changes to the property investment market in the UK we believe that working with Investerge, who are a focused, professional and dedicated to investment, will offer an even more compelling service and solution to our clients. Investerge also have a similar approach to KW; a focus on relationships and advice to understand the long-term aspirations of our clients”.

Richard Jacques, CEO, Investerge Ltd

It is extremely exciting for us to partner with Keller Williams and a brilliant beginning for Investerge. As a start-up, we have a vision of the way a new generation of investors will want to work and invest. We are building technology that we believe will change the property investment industry and combined with the provision of a new concierge level of service to buyers and sellers that focuses on knowledge, information and access, Investerge brings a new fresh approach to the sector. We aim to be the UKs central investment solution that property investors, estate agents and property brokers embrace to enhance their offering and provide new business opportunities for all. Jason immediately understood how this would work for KW. The first part of the partnership has already started with the development of a unique introducer App which provides the KW team with immediate access to our investment marketplace and giving their clients access to new un-advertised opportunities”.

Background

Keller Williams

When it comes to real estate and a franchised business model then KW is a truly remarkable story. Started in the 1980’s US property crash it became a business born out of need. Traditional estate agents were dying so quickly in the ‘80s that thousands of employees were out of work. KW created a network of associates who were self-employed, and this built the business rapidly across the US using the franchise model. Today KW is the largest estate agency in the world with over 180,000 associates with 940 offices. In 2016 the business had a turnover of $67.1m.

In 2013 KW launched in the UK and, using the same model, has grown cautiously and profitably in a turbulent UK housing market since then. KW has not slowed down in innovation and is focused on two key business principles, technology innovation and the high level of training for associates, both are linked of course. KW has, also, built online digital cloud resources to help reduce overheads and provide efficiency for all associates whilst remaining firmly focused on developing highly motivated and expert associates. All associates have freedom to manage their KW business and clients and learn from a vast array of online training aids all focused on building a life-long relationship with clients whether they are in the selling or buying stage of their lives. The days of walking high streets and peering at property particulars in windows are, of course, for a KW client long gone. Your KW associate knows you, knows your needs and has the ability to fulfil all the roles and more of a traditional estate agent but proactively at a time that suits you.

Investerge

Richard Jacques is a property man from a property family and jumped at the opportunity to be part of the Purple Bricks start-up. PB’s aim was to disrupt and create a new way to buy and sell your home using technology and dedicated agents. PB is a bold and exciting venture that disenfranchised estate agents across the UK. It came at a time when there was a difficult housing market and with buyers and sellers looking for more value for money, supported by decades of negative sentiment towards estate agents. The housing market needed change and PB delivered successfully.

Change continues due to the nature of homeownership and the complexity of the process. Online property portals that provide a national database of available residential properties for purchase or letting continue to grow and are they are now the foundation of the system still driven by estate agents. Estate agents are, of course, still changing and with the launch of new models such as Keller Williams the requirement for professional property experts providing knowledge and expertise during the largest and most important purchase or sale in most people’s life is still relevant.

Richard having been on the PB journey and focused on PB’s letting and investment businesses was close to the buy-to-let market as it mushroomed over the last 5 years. He was able to see, first-hand, the challenges faced by those buying and managing properties and also the huge need for the letting and HOM sector to be regulated and controlled. Investors needed help especially as the sector required more and more skill, experience and professionalism to be a viable business or even profitable in a less than vibrant property market.

From this, Richard realised that the residential property investment market needed to change, a change where all parties could prosper and pull together providing value to a property investor, who has very different aspirations to the average homeowner. This new vision would be one where estate agents, property brokers, sellers and property investors all interacted and had access to thousands of properties many of which could not be openly marketed as they were already let. The solution would have a core technology that drove all aspects of the process but supported by highly trained property experts. As Richard likes to say, “When you need a concierge they appear from nowhere and just make everything happen. When you want to go alone, they are invisible!”

Key to Investerge would be the way brokers and agents used the Investerge marketplace to generate business for themselves. Costs would be transparent, and commissions shared but crucially property investors would not be charged for use of the portal. For them, if they knew what they wanted and how to do it they would have the widest choice and the fastest service. For new property investors, their Investerge ‘concierge’ would guide them through the whole process at no cost.

For a regional estate agent interested in widening their services they could build an investment income just by identifying clients and customers who were interested in property investment. By referring clients without any fear of conflict. Investerge would help their customers find an investment and the estate agent would gain a commission. Agents would have transparent access via the introducers app from search to sale. In Richard’s view this prevented any conflict normally associated with agents being seller focused and created new income to support the agency sector.

In the same way, Investerge grows to become a global marketplace for property brokers looking for buyers. The portal would give brokers access to a huge audience and at affordable commission rates. As Richard says, “Investerge is like Amazon for property, Amazon sells its own products and it also supports others to improve their reach. It enables intermediaries to create value as well, all done using technology and efficient logistics.

Original Source PRFire.com

3 Important Factors When Choosing A Location For Your Property Investment

Property investments are a very popular strategy right now because they have the potential to be incredibly profitable. However, a lot of people get the wrong idea and think that buying a property is always going to be a good investment choice, regardless of what you buy, and that just isn’t true. There are a lot of different factors that affect the success of a property investment but the location is always the most important thing. You could buy the nicest house in the world but if it’s in a poor location, you’ll still struggle to find tenants or even sell it on. If you’re in the market for a property investment, here are a few simple things to consider when deciding on a location.

Castle Keys Key House The Background The Door

Look For Growth Areas 

If you buy a property in a popular area, you’re going to pay a premium for it. You’ll be able to charge more in rent but you need that initial investment, which a lot of people don’t have. But if you look for growth areas and get in on the ground floor, you can get a good price on a property that is going to increase in value over the next few years. Look out for development companies like HH Properties and Peter Hall who are putting money into up and coming areas. If you can buy a property in one of these places while prices are still low, your returns will be a lot higher. However, it is always a bit of a gamble and it’s important that you do your research properly to ensure you don’t end up stuck with a property in a place where nobody wants to live. 

Know Your Tenants 

When you’re buying a property to let, it’s important that you know who the tenants in the local area are because that has a big impact on the type of property you should buy. For example, if you’re looking to invest in a small studio apartment, you need to find a location that has a lot of young working professionals. If you buy a small apartment in an area that is filled with families, you’ll have trouble finding tenants. Often, it’s best to consider the tenants first and find a property that matches them. 

Natural Disasters 

This isn’t something that people tend to consider but it’s important because it could lead to a lot of maintenance costs. If you buy a house in a flood risk zone, for example, you have to be prepared for the property to get damaged and you’ll have to cover the cost of pumping that water out and dealing with any damp and that can get expensive. That doesn’t mean you should never buy a property in a risk area because you can save a lot of money, you just need to weigh up the risks and decide whether you’re prepared to deal with them or not. 

As long as you think carefully about the location of your property and remember to consider these things, you should be able to make a sensible investment.