What are the Risks?

 

We would not be doing our job if we said to any prospective investor that property investment carried little or no risk. Every investment carries an element of risk. What we do say is that it is important to manage risks in order to limit it, and to do this we draw on our extensive experience in a number of key areas

Price Risk

As with any investment in the UK or overseas, variations in economic conditions can impact a property market.

How we can help
We comprehensively assess national & local conditions through our due diligence process, and offer you the ability to diversify this risk, for example buying in a number of locations which form part of a regeneration area or, where predictions are made for capital growth.

Interest Rate Risk

Movements in interest rates could increase the cost of borrowing to fund a property portfolio.

How we can help
We work closely with brokers and financial advisors to ensure the latest and most competitive financial products are available to you which will support your local and UK wide properties by investing in locations where interest rates may be more favorable coupled with economic stability and long term growth.

Property Developer Risk

There is always a risk that a property developer may go out of business, or that a development may be delayed.

How we can help
As part of our due diligence process, we thoroughly research the property developer, taking into account factors such as their blue-chip status reputation, experience & track record.

Rental Risk

There may be periods where the property purchased may be un-let. See our Property Lettings & Management and Post-completion Services pages.

How we can help
We can help members with rental insurance and guarantees, and work closely with a tenant search and selection agency.

International Risk

Every country has inherent political and economic risks, which can vary significantly.

How we can help
We comprehensively assess national & local conditions through our due diligence process, and tier international markets according to their risk/return profile.

Exchange Rate Risk

Whenever investing overseas, exchange rates can have a marked effect on the value of a property.

How we can help
We work closely with brokers and financial advisors who are able to provide our members with international mortgages in the same currency as rental income is expected. We also work with large international currency exchange brokers who will ensure you receive the most competitive rates available.

 

 


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