Projects will usually involve the purchase and renovation of existing properties. Each property will be renovated to a high standard. Based on recent experience, the increase in value of the property is expected to provide an average return after renovation of approximately 40% per project on the initial investment.

Using a recently completed project as an example, this type of project could involve a total cash investment from partners of £80,000 (including deposit) for a property with a purchase price of £170,000. Assuming the project is not undertaken by a sole investor, this will be achieved by introducing partners with similar requirements and varying levels of investment. The total operating costs for a typical development include purchase price, mortgage arrangement, legal, stamp duty, financing, renovation, estate agent and management fees and a cash deposit. Start-up funds required also include a cash reserve for any contingencies such as unforeseen building costs, repairs or vacant periods. The remainder of the financing would be provided through a low-interest mortgage provider – usually up to 70% loan to value (LTV).

In this illustration, an investor who invests £10,000 increases overall exposure and potential return from £10,000 to over £25,000. This strategy increases the risk by increasing the exposure to the value of the property, but also significantly increases the potential return.

Please see Previous Projects page for more detail of recently completed projects.

In the longer term it is expected that fully paid-off ownership of four of these types of properties should provide the equivalent of a steady annual income of £50,000 per annum at today’s prices. Assuming a twenty year time horizon, this is a viable projection, but the earlier this financial planning begins, the more likely it is to be achievable.