Through these relationships, we get to hear of new and off-plan market opportunities, which we can pass on to our clients before they reach the attention of the wider market. By negotiating preferential terms, we can help our investor clients to secure substantial cost savings and lay the foundation for profitable, long term investments.
Often, these opportunities will involve residential projects in the UK, but that needn’t always be the case. Our experience, coupled with a global partner network gives us international reach and, accordingly, we bring the best opportunities to the attention of our investor clients, wherever in the world the properties happen to be. They could be residential apartments in a busy European capital, or tourist accommodation in one of the world’s most promising resorts.
Investors don’t just count on us to alert them to new opportunities; they also expect us to carry out thorough research to ensure that they don’t come with any nasty surprises attached. We devote considerable time and effort to due diligence and seek to take account of all the key factors that could conceivably influence the long term value of a investment.
Part of this work entails testing the local market for each property. We’ll make strenuous efforts to gauge the nature of current rental demand, and we’ll keep a vigilant watch for any issues that might subsequently cause that demand to change.
This is an onerous process because so many different considerations can affect market demand. Some factors may be economic, others political or commercial, but they all need to be weighed against one another in order to develop a proper sense of risk. A particular property might look great on paper but its value as an investment could be undermined if new developments in the area start to ramp up the competition. Conversely, a property might be located in a low-priced market but if the area will soon be energised by major new investments in business or infrastructure, then the property could quickly take on a new appeal.
It’s part of our role to apply our experience to look out for these and other factors, and to shortlist only those opportunities that we believe to be safe, ethical and sustainably profitable.
For investors, the fact that the units aren’t finished does mean a small increase in risk but to offset that, developers will be prepared to offer significant discounts on the market price. In short, getting in early can mean big savings for investors. Better still, a relatively small deposit is usually all that’s required to reserve the investment at the agreed price; thereafter, if the property increases in value, the investor will enjoy the full benefit of the capital appreciation. Buying off-plan therefore has the potential to deliver a significant leverage advantage.
Fortunately, we’re well placed to help. We work with an extensive network of buy-to-let mortgage brokers who we know from experience will deliver appropriate and affordable deals.
Where required, we and our partners can help you with important considerations such as cashflow forecasts, business planning and strategies for maximising leverage benefits. Most importantly of all, we’ll always look after your best interests: we’ll make sure that the offer is affordable and realistic, with sufficient allowances for changing taxation and fluctuating interest rates.
For example, if you’re planning an overseas property investment, we can introduce you to experts in the legal and contractual processes that apply in that country. We can also put you in touch with companies that specialise in property marketing to the tourist sector, and to local rental management agencies that can be trusted to represent your interests with courtesy and professionalism.
Solomon Investment Partners itself isn’t a financial planning specialist. However, if you’re thinking about using property investment as part of a retirement plan, then we can give you and your independent financial adviser all the information and support you need. And if you don’t already have a financial adviser then, again, we can put you in touch with reputable professionals who have particular experience of pension planning and property investment.
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