Property Investment UK | Independent Property Investment Specialist

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Property Investment
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Investment Property Partners is a leading
independent property investment specialist
serving clients throughout the UK and
internationally. Our experienced property teams
focus on delivering exciting investment
opportunities that encompass most property asset
types including commercial property, buy to let,
buy to sell, sale and lease back, overseas
property and development land. Every property
investment acquisition or disposal is unique and
by drawing upon a wealth of experience found in
each of our property disciplines we are able to
provide innovative and tailored real estate
solutions to enhance our clients investment
goals and objectives.
Investing in Property The process of investing,
including property investment could in simple
terms describe the process of purchasing or
putting money into an asset with the expectation
that it will gain in value at some point in the
future to return a profit when that asset is
eventually sold. There are a diverse range of
investments to choose from, such as stocks and
shares, gold, fine wines, stamps, antiques, works
of art, jewellery, classic cars, and property to
name but a few. Your attitude to risk, access to
finance, experience and personal preferences are
just some of the factors that will dictate what
investment vehicles you decide to select.
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Long Term Value of Property Property has
historically proved to be a good investment for
many. Throughout history property has provided
astute investors with handsome returns, with many
of the Worlds wealthiest people having made
their fortunes in property. Although the past
few years have shown a decline in property
values, the underlying historic trends would
suggest that this is a temporary blip, and that
the long term trend is for rising property
values. Property does not go out of fashion,
unlike fine wines or antiques, and there is a
rising demand for it driven by scarcity, whether
as homes for people to live in or as commercial
property to support industry and
commerce. Property is solid and substantial, and
less subject to rapid market fluctuations such as
the stock market, where a crash can seriously
impact or even wipe out the value of an
investment. Property values do fluctuate however,
but the value of the land on which it is built is
a tangible asset.
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Advantages of Property Investment Property
investment has several advantages over other
types of investment opportunity

• ASSET SECURITY

Property, be it commercial, residential or
overseas is a tangible asset that is unlikely to
lose all its value in a recession or stock market
crash and so provides investors with a form of
asset security.

• PROPERTY FINANCE

Finance to purchase property can be available at
lower interest rates, spread over a long term in
the form of a residential or commercial mortgage.
However, an initial cash deposit will usually be
required by the lender.

• FINANCIAL LEVERAGE

The important principle of financial leverage
can be applied to purchasing property. This means
that once you have purchased one property, you
can borrow money against the asset value to
obtain a mortgage for another property, until a
number of properties are acquired. This principle
is often referred to as buying property with
other peoples money and can be a very useful
technique. A large number of ordinary people have
used the principle of leverage extensively to
create substantial property portfolios.
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• KNOWLEDGE

Many people already understand the basics of
buying, renting, and selling property from their
personal experiences in acquiring their own
home.

• DEMAND

In the UK there is a large, well established
buy-to-let market, in which properties are bought
to let to tenants (students, young professionals
etc.) where there is good demand in large cities,
university towns etc. Specialist mortgages are
available for residential buy-to-let properties,
and the intention is that the rents received pay
for the mortgage and any running costs, with a
surplus for profit. If the property increases in
value over time (capital growth) they can then be
sold at some point in the future for a profit.

• TANGIBLE ASSET

Property is a tangible, bricks-and-mortar asset,
and is versatile in that you can rent it, live in
it, renovate it or redevelop it.

• DESIGN

A property can be customised to your own
requirements. You can have the pleasure of seeing
a property go from run-of-the-mill to an object
of beauty.
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• TAX EFFICIENT

A residential property can be used as your own
home until you sell it, this is a useful approach
as it helps to minimise capital gains tax bills,
which with property can sometimes be
considerable.

• HOLIDAY HOME

If located in a good, sought-after area, you can
use your investment property as a holiday home
for part of the year, and rent it out in the
times you dont use it.
Disadvantages of Property Investment
Property investment is not all about the up-side,
there are also a number disadvantages that the
prudent property investor should clearly
understand

• SIGNIFICANT DEPOSIT

Investing in property often requires the investor
to deposit a considerable sum of money, as
property finance is unlikely to be available for
100 of the acquisition.
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• ILLIQUID ASSET
• The money invested in property may not be easy to
  access if you need to release your cash quickly,
  as property sales can often take some time to
  complete. Property is sometimes referred to as an
  illiquid asset and should be seen as a medium
  to longer term investment proposition.
• COMPLEXITY
• Buying and selling property can be a complicated
  process, involving several different stages and
  additional costs. These can include a range of
  professional fees, selecting the most suitable
  forms of property finance, and the use of lawyers
  and various agents, engineers and surveyors.
• PROPERTY TAX
• When a property is sold, capital gains tax
  becomes payable on the profit element, that is
  unless you can demonstrate that the property was
  your primary residence. Property tax is a complex
  area and we recommend you consult with a suitably
  experienced accountant or specialist property tax
  advisor.

• PROACTIVE MANAGEMENT
• Property is an asset that requires proactive
  management to safeguard its value and income
  streams. Regular tenant management, building
  maintenance and updating is required to minimise
  rental voids and prevent the building fabric from
  deteriorating.

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• LEASEHOLD
• When buying leasehold properties, as opposed to
  freehold, it is important to remember that you
  are not buying the property itself but are only
  leasing it for a specified number of years. When
  the lease expires, the property reverts to the
  leaseholder. However, many leases are for a
  considerable period of years and there is little
  difference from buying a freehold property. Most
  apartments are sold leasehold.

Managing your Property Risks On balance, many
people decide that property is superior to many
other forms of investment, mainly because it is a
tangible bricks-and-mortar asset, it is subject
to fewer market fluctuations, and most people
have some experience of it. However, any
investment involves risk, and it is important to
understand that property values can go up as well
as down. It is also well to remember that
understanding and managing your risks, and
getting good professional advice will have a
significant impact on your prospects for success
as a property investor. The more knowledge and
experience of property dealings and investments
you have acquired, the more manageable your risks
are likely to be.