News
Credit Crunch Offers Opportunity for Property Investors
17/03/08
Finding acash deposit can be as much of an obstacle for people who want to begin a property investment portfolio as those wanting to get onto the first rung of the property ladder. But while first time buyers usually turn to a combination of good old fashioned saving and finding the right, affordable mortgage product, for would-be investors there is now another way. They have always been able to use savings or withdraw some of the equity in their property, but now the services of a specialist company that allows investors to buy with zero investment are available.
Sutton Coldfield-based Zero Investments offers such a service and has recently expanded its offer to a wider network of potential investors. It will be exhibiting for the first time at the Property Investor Show at the NEC on 11th, 12th and 13th April.
Lucy Cole, half of the soon-to-be husband and wife team behind the company explained how buying with zero investment works; “Our portfolio is made up mainly of either properties purchased at auction, or distress sales, where the householder has to liquidate to resolve a financial problem. We buy these for considerably less than market value. We ensure that anything we buy is in a respectable state of repair and in an area that is likely to easily attract rental tenants. We have been buying these properties for ourselves, but now we are offering them to investors at 15% less than their market value. Some of the properties will be empty, others will have their original tenants, who in effect are converting from buying their property, to renting it. It can be very attractive to have tenants already in place giving an instant income.
The key to investing zero is the 15% difference between market valuation and the purchase price. It allows finance deals to be done that require no additional deposit.”
Property Investor Show organiser Nick Clark said “This can be an ideal way for new investors to get their portfolios under way. I think that the credit crunch is making now an ideal time for people to invest in property, probably giving them more choice in property type and location than there’s ever been.
The company, Zero Investments charges no fees, and makes its margin from the difference between the original auction or distress purchase price and the market value less 15% that they sell on to the investor. They will put potential investors in touch with appropriate mortgage and finance providers and also provide free RICS valuations and conveyancing through nominated professionals.
Lucy added “We work hard to match investors with the right property – this is an ideal way of starting, then building a property portfolio for anyone who prefers not to release any of the equity in their own home. Many investors like the idea of having tenants already in place for instant income.
Because we purchase repossession properties, we believe that the current credit crunch will only serve to increase the amount of choice in the market place, allowing investors to take advantage of the market conditions as some homeowners decide to convert to renting.
Our team exhibiting at the Property Investor Show will include myself and my parther Jonathan Wilcox. We are both seasoned investors in this market. In 2007 we bought over 100 properties, and sold around 30 on to investors. Will be happy to offer our advice to anyone who is thinking of making an investment.”
The free to enter Property Investor Show attracts an audience who are serious about making money from property, offering investments and related services in the UK and overseas.
ENDS
For more information please contact Clive Reeves on 01543 501111 or email clive@wardlovett.com