Cash positive rent:
Investment property should be calculated to generate a cash positive rent. If the property is going to cost you money and be a drain on your resources then you should question what sort of investment it really is. That is to say that the net rent you receive each month needs to cover your mortgage and letting agents fee. The level of this coverage is often referred to as rental yield and is calculated thus: the monthly rental x 12 months divided by the price you paid for the property. A good property investment gives a rental yield of 6% or above. In the current economic climate property investments that produce upwards of 8% although desirable, are very difficult to find. This said Crimson have been and continue to find investment properties which give a good rental yield.
Little or No money down
It is possible to purchase a property with little or even none of your own money as a deposit. Such deals are structured as a No Money Down deal (NMD). This is a recognized property term and is a legally recognized way of structuring an investment property deal. Transacting deal this way is quite complex and you will benefit from appointing an experienced property solicitor to act for you. Crimson use solicitors who are experienced at NMD property deals. Deals that require little or no money to purchase them tend to attract would be investors who litterally have no spare cash. We prefer not to offer such people our investment properties. The buying, selling and owninf property in ther UK has a level of risk associated with it. Crimson specifically look to offer our property deals to individuals who are well healed and have ample spare cash available to cover any drops in the property market or unexpected maintenance issues
RICS surveyed
When considering a deal and specifically the price on offer, it is imperative that you ask to see a RICS survey that confirms the property's true valuation. If you are applying to a bank for funding to purchase a property the first document the bank want to see is the RICS survey. Be cautious of anybody offering you a property deal with large levels of 'discount'. An estate agent's valuation is 'only an opinion' and often the factors that they base their opinions on are very weak. If you are considering investment properties from a sourcing company always ask to see the RICS valuation. If they haven't got one then they can not substantiate the price of a property, the asking price or the condition of the actual bricks and mortar. Ask your self the question what are they trying to hide?
Crimson have a RICS survey carried out on every property we offer out for sale.
It's FREE to receive details of our property deals. Simply fill in the form above and we will send you details of bmv investment property deals as we source them.
