- Commutable to London
- Excellent schools around
- Access to a deal they may not normally get
- Beautiful surroundings
- Great demand for rental properties
- Only ever a void or untenanted for one month in last 2 years
The total value of the project is 518980 GBP. The property has a 60% loan to value mortgage, with 229480 GBP available for investment. The cash on cash returns are projected at 4%, with a targeted IRR of 12%.
From the CEO of IPS: I specifically like this property and we know the seller and we know why they are selling. They have immigrated to America and are moving all their assets to the USA due to tax reasons. Thus we know the property, we know the rent roll and we know the quality of the management agent. Predictability is key to a successful investment. On top of this there is the ability to increase the rent in the building. Finally along with being ‘freehold’ which is critically important, it has 3 separate flats which means you have 3 separate income streams which greatly reduces the risk and also allows one to sell off the flats individually in the future should one want to. As you control the freehold you control all the costs and so you are in control of the income, as well as the expenses, and you have diversified the risks. This is a very safe and simple way to get invested into the London and UK property market.
Brexit and the uncertainty around it presents a great opportunity. People are fearful and they don't know what the future beholds. However what is important is the fundamentals. The currency (pound) is weak at the moment because of the uncertainty and so will strengthen against the USD over the medium to long term. Then there is uncertainty in the property markets, based on Brexit and also the changes in the tax regulation. Again this presents an opportunity as you can buy at subdued prices, yet the fundamentals remain strong with far stronger demand than there is supply, especially in the Tier Two properties which cater for the “workers” who need to work and live in London. This segment remains strong with high demand and affordable accommodation with convenient transport links is key to investing in a sustainable market, which will show sustainable income long term, along with capital growth. This is not a short term prediction but one based on the long term fundamentals.
About the sponsor
International Property Solutions (IPS) invests in First World Countries, by buying an asset class that generates a first world income to give you a secure portfolio hedge and growth protected by a first world mindset. Our residential portfolio builder program is a turnkey, armchair solution for creating passive income for investors. Starting in 2003, IPS has been helping people invest internationally with confidence.