There is no asset class that is guaranteed to rise, or even to maintain its’ value. Gold has had a great bull run, but there is no certainty it will continue. And the secure storage of gold costs money, while gold itself generates no yield.
For many people, property remains an interesting option, particularly as yields elsewhere are so low.
Sourcing properties at a keen price, maintaining them, tenanting them, ensuring collection of rent, dealing with tenant issues and so on, are all in themselves tasks that many of us can undertake. But do we have the time, and do we have the inclination?
About a year ago I met some of the people from CXG at a Property Networking Club meeting. I was impressed with what I heard, and took the opportunity to visit them and look round their home patch. Both my wife and I have now individually invested through them. Heres’ how I see the benefits of dealing with them –
1) I believe they are straight. Always a good start in business dealings
2) I like the area that they specialise in. Haverhill (where?!?) is low key, good value, well situated, up and coming, in the South East, with a healthy industrial base, and well placed logistically (worth a peek at a map?).
3) They have good contacts for sourcing property.
4) They have High Street premises, which is the place to go if you are looking to rent in Haverhill.
5) They manage properties and tenants professionally.
6) They are innovative.
7) They specialise in obtaining a high yield from properties.
8) They have a close working relationship with the Local Housing Authority.
9) They have a method of ensuring that the rent paid by Local Housing Authorities to the tenant does get paid as rent.
10) They pass on collected rent to the landlord and account clearly for outgoings.
Now I have to declare an interest. We got on so well with CXG that we have formed a company with them to finance the purchase of properties for renovation and onward sale. So you have to be careful of what I am saying. But then you need to be careful of everything you hear anyway. Obviously don’t take my word. Have a chat with CXG, if you are still interested take the time to visit them, meet face to face, see what they have to offer, and form your own opinion.
I now have to declare another interest. We have just formed another company with them.
* Property produces a yield so long as you have a tenant paying rent that exceeds
your interest and running costs. Rents can go down as well as up. Commercial property
has a risk of making a high negative return as Gordon Brown has been stupid enough
to reintroduce rates on empty commercial property.
Be very careful of companies offering a section of land within a plot which they
claim they have a high chance of gaining planning permission for.
A plot of land without access is a liability without a benefit - except to the con
man who sold you the package. A big clue is a lot of ‘information’ about the benefits
of land ownership, accompanied by pretty pictures, but precious few hard facts e.g.
how much per square foot or meter. If there is no plan for the estate, then there
is no way you can know that your land is ‘serviced’. Assume that it is a con until
proven otherwise, to you , your accountant and your legal adviser. You’re welcome
to run it past me too, if you like.
For a property opportunity with a difference you could take a look at this site -
http://www.heatherbarnes.co.uk/investing/ Heather used to be an IFA, but gave that
up to follow a career in investing. She is currently going through the process of
accreditation again, and will then be one of the few, if not only, individuals selling
overseas investment property who is IFA accredited. Clearly accreditation does not
of itself make her investment opportunities certain winners, but you may like to
take a look. It is fair to say that there should be less risk of being totally ripped
off if you invest through her, than if you just take a flyer with a poorly researched
investment pushed at you by an over enthusiastic salesman.
Invest your Time and your Money effectively
to create additional income or increase your wealth
Suggestions to discuss with your IFA
