Why Invest?

Property investment can be either short, medium or long term depending on market conditions, country of investment and attitude to risk.

Whether looking to invest in an emerging country or taking advantage of the UK repossession market, Property and Land Investment can assist in all areas of potential capital growth and yielding products.

In 2009/10 Property and Land Investment successfully brokered over £38M worth of UK discounted stock on behalf of clients. Many investors are currently taking advantage of heavily discounted stock at over 45% below RICS valuations.

The UK market is now hardening but we still have excellent routes into receivers, distressed developers and banks. We focus on UK residential and overseas investment property

Our five Key Principles

Property and Land Investment work closely with numerous developers and land owners with a view to brokering positive investments for our clients. Based on our five key principles. We identify ideal investment hotspots where our customers can potentially make the highest return on their property or land as a medium to long term investment. The majority of the property we source is ‘off market’ and discounted by up to 30% below the current market value with rental yields (incomes) between 6% – 14%.

Our expert team selects each development in accordance with five key principles:

  • Price (market competitive or often below market value & exclusive to PAL)
  • Ease of Purchase (for the customer, private account manager often appointed)
  • Location (Ease of access & infrastructure)
  • Desirability (from rental potential to re sale market)
  • Credibility of the developer

These form the cornerstones upon which we build our offers.

We recognise the importance of ease of purchase and flexibility of payment, whether you are buying as an investment or for lifestyle, we are able to create unique payment plans to suit you. This may even remove the requirement for a mortgage or loan for some purchasers.

Whether you are just starting out as an investor in property or already have a substantial portfolio it is essential to consider diversification of the type of property investment you hold and to consider the relevant risks and returns for each.

Some investments are potential capital gain investments only and therefore speculative, some are investments producing a healthy rental but without necessarily intending to gain in the capital value. Ideally though your investments should have both attributes as a high yield on a property going down in value is not a particularly sound proposition.

Off Plan Property Investments

Off plan residential investments were very popular during 1999 – 2006 and were producing capital gain returns in excess of 100% per year based upon the 15% typical deposit required to purchase the property. This was both due to the bulk-buying discounts available on properties not yet built via property investor clubs and the fast price rises seen in the past few years. However with price rises now slowing and often stagnating it pays to be much more careful on these types of investments in the future; particularly if the property rent forecast barely covers the mortgage payments making the purchase a speculation on future prices rather than a true investment.

Many new investors to the market concentrated entirely off plan and if purchased carefully this is an important factor of an active portfolio as it can provide short term trading income if successful. It should however be balanced with one or many of the other property investments available to ensure stability.

A small number of key developers can still offer this method of purchase thanks to a unique buying scheme offered by Property and Land Investment. In brief, the land is purchased and secured by the vendor (either by JV of 100% ownership) Full planning gain is applied for and an attractive scheme is drawn up. Both Colleys and e-surv RICS (Royal Institute of Chartered Surveyors) will value the property on an ‘as complete’ basis.Property and Land Investment then negotiate on behalf of clients to maximise a discount against the RICS valuation. This can often be between 20% – 35% on houses and up to 45% discount off new build apartments. The investor exchanges with 10% of the net (discounted) purchase price with funds being held in an ESCROW account and deposits being secured against the build contract. Completion is anticipated within 4-6 months when the investor takes delivery of the new property.

Depending on the individual investors requirements, Property and Land Investment can assist with the pre-marketing the property for a tenant, offer full lettings management, purchase and installation of white goods and flooring through to full furniture packs.

Refurbishment Rentals

A faster way to get a property bought and rented is to buy and refurbish an existing property however with recent price fluctuations, established landlords confirm these are getting harder to find in quality areas. In some less desirable areas property is still cheap but with this comes the likelihood of lower quality tenants and hence riskier returns. Property and Land Investment offer a complete ‘turn key’ package regarding refurbishment properties (mainly North West of England). Property and Land Investment work closely with receivers, high street banks and mezzanine financiers to source investment product. Once a suitable property is sourced, a full project managed refurbishment will take place, including finding suitable tenants ready to move in on completion of the ‘re-furb’

Commercial Property

Commercial investment property can offer investors an opportunity to achieve usually higher yields than  possible today in the residential sector, combined with a stronger tenant rent commitment and longer leases. Commercial property can offer yields from 5 to 14% +, depending on the quality of the building and tenant.

Property and land work only with a select number of commercial property agents and will only promote deals that have undergone strict due diligence by the introducing agent.

Land Investments

Land can offer some good speculative returns on a long term basis. Land without planning permission is significantly cheaper than land with planning permission whether for residential or commercial use. For the speculative investor careful selection of land in urban infill areas, industrial estate expansion zones and green belt land likely to be land locked by future highways expansion can all offer exciting but probably long term gains.

Property and Land Investment has been responsible for the successful promotion of numerous plots of land ranging from ½ acre with full planning consent through to a strategic 269 acre land parcel.

Holiday Lets – UK and Overseas

This is another property investment which is usually treated as a business asset and hence attracts taper relief on capital gains. Holiday lets in the UK and overseas are getting more difficult to make profitable however, utilising the Capital gains Allowance tax it is still possible to achieve up to a 10% yield on investment from rental income. Considering mortgages in some overseas countries are well under 5% it is very achievable to operate a 12 to 15 year repayment mortgage and own the property outright at the expense of the tenant after this period. You are relying on a different rental income type to normal residential rental lets as you are taking money from peoples holiday budget instead. Popular countries where buy to let abroad works well include Spain, France and the US ( Florida ) where demand and rentals are high..

For further information on our developments and land please talk to us now on 0845 680 0673