Instant Access Properties

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Investing in property

1. Why should I invest in property when I can invest in the stock market?

   Plummeting UK share prices, pension fund crises and corporate disasters have all dented investor’s faith in financial markets.

   In comparison, property has performed well for UK investors for the past forty years. In fact, in the past three years, residential property has been one of the strongest performing asset classes. Statistics show that, over the last 15 years, property is returning up to three times the profits in comparison to the stock market. Since 1997, property value has risen around 70% while the stock market has dropped around 30%.

   Property has become a popular investment choice as more people realise the returns that can be achieved.
   

2. What is the average return on investment for residential property?

   The return from residential investment property is ahead of other assets, with property let on modern leases returning 8.1% in 2005.
   

3. What is pre-vetting?

   Pre-vetting is a sophisticated process whereby a property must meet a set of criteria before being offered to our clients as an investment opportunity. This process sees us turning down approximately 80% of investment opportunities offered to us. Find out more about our pre-vetting process.

4. Why is it better to buy off-plan than a finished property?

   By buying off-plan we believe you will get the most out of property investment. Off-plan property is sold to investors before any actual structure exists, meaning that investors gain from the capital growth of the property during its development phase while only paying a deposit. In addition we have the purchasing power through our clients to negotiate discounts of up to and beyond 20% from the off-plan price.

5. Do I need to have several properties to be successful?

   We believe that having multiple properties is one way of avoiding problems as well as a way to increase your profit. With a portfolio, you can always ensure that if one property is empty, the others will cover your costs.

6. What if property prices go down?

   We recommend taking a medium to long-term view with any property investment. Our negotiated discount will provide a buffer against short-term price fluctuations. We endeavor to select investment areas with mature property markets, and those that are less volatile.

7. I would like to sell my unit on completion, is this a good idea?

   We believe that any property investment should be viewed as medium- to long-term (seven to ten years). Residential property has been the best performing asset for the last 20 years, but selling an off-plan property around the time of completion will not provide the best possible returns, and may even provide a loss.

   With off-plan property, the fist 12 – 24 months represents the timeframe when other investment owners may try to sell. This can result in a higher number of units being sold on the open market at the same time, creating an over-supply that forces sale prices down. Our experience suggests that holding on to property for the longer time will maximise returns.
   

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