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Found 8 results

  1. I am currently looking at my first investment and considering off-plan The unit is very nearly finished. How is the exchange payment/deposit paid? Do I need to have that cash spare or can it be paid from my mortgage? Would appreciate any help!
  2. There are many investors who have lost money investing in companies which either fail to deliver or go bust before completion of developments. http://www.thetelegraphandargus.co.uk/news/14695945.International_investigation_begins_as_firm_creating_flats_in_Bradford_goes_bust_owing_millions_of_pounds/
  3. I am from the UK but I now live in South Africa. I set a goal to make my first property investment this year. I have put a 2k reservation fee down for an off plan apartment in Manchester back in July 2020 to be completed Q2 2022. The process has been taking a long time and it brought up issues with the developer as my but to let mortgage is looking likely to come through a Shariah bank who have said they are willing to give me a mortgage at this stage. Once the property build is complete in 2022 the sellers solicitors will serve notice to complete in 10 days. My solicitor has ironed out a few points but have said to the developer that they will not allow me to exchange contract unless the developer makes this conditional to me obtaining my mortgage. My mortgage is not going to be put in place for a good while yet and I cant seem to think a developer would agree to this anywhere in the world? I am in the situation now where I override my solicitor and exchange with the risk of not getting a mortgage and trying to pass on the contract to someone else or I walk away and lose my 2k reservation fee. I am not sure what other options I have? Can anyone offer any advice? Thanks. Alex
  4. Hi all, I've been listening and researching for a couple of years on and off, I have now decided to start my investment journey! My time is quite limited for research so I stumbled across an investment company and thought I would give them a shot to see what they can offer. So far I am quite impressed, not forcing a sale and generally being very helpful. They seem to know what they are doing and everything makes sense going by my limited knowledge. My main aim is capital gains over a long period with multiple investments for a retirement fund, but of course the rental profits need to be afloat too! Ill get to the chase and below is the recommendation they have come up with. Off plan 1 bed 9th floor apartment 399sq ft in Liverpool L3 Just outside the business district and walking distance to city centre. Within development areas too. Developer is Vinco Due to complete Q2 2020, ground works have just began. Long stop date June 2021 Price: £132,525 with normal 75% LTV mortgage £5000 reservation fee which is part of the deposit with exchange 28 days after. Initial deposit at exchange 30% (£39,758) Service charge: £798/year Ground rent: £300/year The developer requires the purchase of a furniture pack at £2399 Funds held in stakeholder escrow and released in stages once signed off. 10% of property value insured (33% of deposit) They have a compulsory 3 year rental guarantee of £663/month and no service/ground rent charges are applied for those first 3 years. To sum it up ignoring the 3 year incentive... (mortgage interest rate 2.69%) cash invested £42,656 monthly rent £663 gross yield 6% net yield 2.5% ROI 7.8% monthly pre tax profit £278.99 Although thats not with allowing any void periods! With 5.5% interest rate it only scrapes through month to month with a profit. Hope that all makes sense.. i would very much appreciate anyones input! Cheers Mark
  5. Hello, I'm being sent a lot of newbuild developments all over the country, some nice ones for investment, some aren't. The problem I find with a lot of these developments is that they ask for 30%, sometimes more on exchange of contracts which I think is ridiculous. I'm not about to give my money (£40-£60k) to the developer, to just sit in their bank account for 2 years. I'm (we are) basically funding the developer's work. Am I missing something? is there another perspective to this? (assuming I'm willing to wait 2 years for a property).
  6. Been looking at new build schemes. Developers often have their own solicitor drawing up contracts, is it worth having you own to look over it?
  7. Hi all, I'm considering buying an apartment "off-plan" (so to speak) in a currently derelict building in Liverpool. The building is a Grade II listed building. It is being completely renovated and made into a new residential development with many units. Delivery would be end 2018. A few things really I'd love some advice on: 1. Will it be difficult for me to secure a mortgage on what effectively is a Grade II listed building (despite the fact that it's being completed renovated)? 2. Am I likely to incur higher than usual service charges down the line? (At present, the proposed services are in line with other one bed apartments in comparable developments in Liverpool - around GBP700 or so, but I fear that over time this could shoot up when the 'wear and tear' kicks in and things needs to be replaced/upgraded etc) 3. As the project is being handed over in late 2018, I assume there is no way of finding out now how much of the service fees will go towards the 'sinking fund'? 4. Lastly, do you think it'll be tougher to sell the unit if part of a 'Listed' building? (ie going back to point 1 I suppose - if buyers will have issues securing a mortgage on it?) Any advice/insights/guidance would be much appreciated! Thanks so much A
  8. Hi, I would be very grateful for some experienced advice on an apartment purchase, which has hit a problem at the lenders survey stage. The property was purchased off-plan - terms of the contract were 5% upfront, then remaining 5% upon completion. I am pleased with the build quality, however, i have now hit a snag in that the lender will not lend on the property citing "high risk" and "unsuitable security". In fact, after discussion with my broker, it appears a number of lenders are not willing to lend on the building. I'm trying to locate the exact problem, but understand it may be down to the concrete construction (this was originally an office block built in 1980s and now converted to residential). I'm put off the fact i'm having difficulties obtaining a mortgage, which could mean refinancing and/or selling issues in future. If i pull out, could i recover my 5% deposit? - and worse still, would i be required to pay the outstanding 5% since the contract is already signed 12months ago? I would argue i did not sign up to a development that would be very difficult (or even impossible) to obtain a mortgage on!! Many Thanks Lee
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