IAP Global pre-vets the developments it makes available to its clients. This pre-vetting process sees us reject approximately 80% of the developments we review.
Our pre-vetting process covers the following:
- We carry out our own research in relation to local infrastructure such as airports, public transport, road facilities, schools, shopping, leisure facilities, proximity to car parks and other local amenities in each applicable region.
- We contact estate agents in the area to find out about historical property price performance.
- We obtain an independent valuation of the open market value of a typical unit in each development using RICS qualified surveyors in the UK (and appropriately qualified individuals outside the UK). From that basis, we use our own experience to calculate the open market value of the other units in the development.
- We ask local estate agents to provide us with estimates of potential rental income for properties in the selected developments based on their knowledge of the current market conditions.
- We look at the track record of the developers behind each individual development, including their track record of completing on time and where possible, their financial background.
- We obtain information about other developments in the area where these are available, and where we consider this appropriate.
- For overseas developments we select countries which we believe to be stable politically and economically.
As with any investment, property can go down as well as up and there is no guarantee of future performance. With this in mind, we strongly recommend you carry out your own due diligence to satisfy yourself that:
- The information you obtain (including information in relation to local infrastructure, amenities and rental prices) is current, and are aware that it may be out of date when the development reaches completion.
- The information you obtain from estate agents and other third parties is accurate.
- The valuation you obtain is appropriate, and conducted by a professional body.
- The developer has a sound, reliable reputation; there is always a possibility that the developer may become insolvent and/or the development may complete late. You need to be aware that there is a risk that you may lose your deposit if the developer becomes insolvent.
- You are prepared for the open market value of property to go down as well as up, and are aware that there are no guarantees of future capital appreciation or rental income.
We recommend that you instruct a solicitor (or other appropriately qualified individual in the country that you intend to purchase your property), to make sure that you have sufficient safeguards against any risks associated with the purchase of the property.
See our Managing Risks section to find out more about the risks associated with off-plan property investment, and how we can help you to mitigate these risks.