You may have this process covered. However, if you are a beginner or going into a new sector that you have not invested in before, it’s important to seek the right guidance from the right company/advisor.
The foundation of your investment discussions and decisions
Consider listing down the answers to the following questions, it’s good to layout your foundation points that are personal to you. And it’s good groundwork, as this should all come up in the initial conversations when seeking help or guidance.
- What is your appetite to risk?
- How old are you?
- Are you married and is this a co-buy with your spouse?
- Are you a high rate tax-payer?
- How soon must you see a return on your investment?
- How soon do you want to see a return on your investment?
- Are you interested in growth or high annual return? Or both?
- Will you need to get access to your capital while it is invested?
- Are you looking for long-term investment or short-term?
- Property specific – would you leverage your £100k, to buy two properties, rather than cash-buy one?
Property Market Research
If you are open to advice, do a little research on the different markets and sectors that will be relevant to you, especially before calling an investment agent or IFA for the first time.
You could use your “foundation” list above as search terms online. For example:
“Short term investment with medium to high risk” or “Best long term investment returns to supplement my pension/salary”
Look for the most relevant answer to your search that looks like well-rounded, passive information.
With the majority of property investments purchased off-plan or at least early on in the build phase, property due diligence (DD) is absolutely fundamental to every investment.
At REW, every project has the same suitability process to understand the means to delivery, who the contractor is and the schedule of works – along with ensuring there is demand in the area, the return is sustainable and the purchase contracts are all in order.
A broad DD check-list is as follows:
- Developer Check
- Project Suitability
- Project Details
- Management & lettings
- Location review
- Solicitor & contracts
- Site visit & talk to the developer