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Asked Questions |
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1.
How do I start?
Speak to one of our friendly advisors,
who will talk you through the process
of getting started. Our telephone number
is 0208 568 8119. |
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2.
Is the Reservation Fee paid to Coutes
Colbyco or to the developer?
It is always paid to Coutes Colbyco. |
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3.
Does the nominated solicitor work for
Coutes Colbyco?
No. Although we recommend solicitors
who are quick, efficient, reasonably
priced, and understand buying “off
plan”, they only represent YOU,
not Coutes Colby Co nor the developer. |
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4.
Are mortgages based on my salary?
Normally the answer is “no”
in the UK. Buy to let mortgages are
usually based on the ability of the
rent to cover the mortgage by 125 –
130%. They are investment loans which
are unrelated to your personal financial
circumstances. Just occasionally, however,
a lender may wish to take further security
by assessing your income, but this is
very much the exception. On the overseas
side your mortgage will be based on
your income or the combined income of
your household. |
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5.
Do you use “gifted” deposits?
Where the developer and the lender are
in agreement, we will do our utmost
to help you use the negotiated discount
as a gifted deposit. Unfortunately,
not all lenders will allow discounts
to be treated in this way, though there
are other ways of achieving a similar
result. Our panel mortgage advisors
are independent so will find the best
mortgage product on the market and are
not tied to any one lender. |
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6.
Can I sell my property, straight after
completion?
Yes, but we at Coutes Colbyco advise
our clients when building a property
portfolio, this should be seen as a
medium to long term investment. |
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7.
What if I live far away from my property?
No problem. Many investors have never
even seen their investment property!
Coutes Colbyco will help you find a
tenant and in some cases can arrange
for someone to manage the property on
your behalf. |
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8.
Is purchasing property overseas more
complicated?
In most cases the sales, acquisition
& the legal process differs from
the UK and Coutes Colbyco can introduce
you te the relevant professional who
will be able to advise accordingly. |
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Although
recent years have been rather exceptional
in property investment terms, they nevertheless
provide an example of what can be achieved
by buying off plan. If you had £50,000
to invest, this could have been enough
to place deposits on £1 million
of properties off plan. This assumes
a gifted deposit
from the developer of the other 15%
required for a buy to let mortgage.
In three years (2002-4) prices doubled
in many parts of the UK, so the £1
million portfolio would now be worth
£2 million. This means you would
have gained a profit of one million
pounds sterling from an initial investment
of £50,000 plus fees.
Even if the total fees for (say) ten
properties at £100,000 each had
amounted to a further £45,000
the £1 million growth would represent
a return of over 1,000% on your total
investment of £95,000.
Added to this, your tenants will be
paying sufficient rent to cover your
mortgage interest at current levels,
so by the time the value has doubled
again, you will have invested nothing
further, but
gained a further £2 million.
Remembering the Rule of 72, at 24% compound
growth rate the price will double every
three years |
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