Repossessed Properties

IPS have targeted The Working Class, as it is the only category that is at or near the bottom of its growth cycle and is already selling for about £160 000 in certain areas.

Room for growth – enormous potential

The homes are spread throughout the UK and Ireland, with the North East of England fast becoming recognized as the best source. The majority of RI’s better quality Buy and Rent Back homes in the North East, are still at or near the bottom of their capital growth cycle, which means there is enormous growth potential.

Invest offshore from £65 000

South African investors can purchase one of these homes from about £65 000. A cash-flow analysis clearly shows the investment is cash-flow positive from day one. These homes which are quality inspected and valued by The Royal Institute of Chartered Surveyors (RICS), are semi-detached properties and not apartments. They have five to ten year lease agreements (5% escalation p.a.) in place from day one and are actively managed. Tenants are responsible for their own internal maintenance and decorating, which they do – they were the previous owners! Rent covers the mortgage and other costs. Many of the properties are sold with a genuine £5 000 to £15 000 built in equity. A 20% deposit is required for South Africans to secure.

An immediate time frame

The investment can take place with immediate effect as RI has a huge selection available. It takes roughly 12 weeks from the decision-making process to the transfer register.

A unique approach responsible for their success

RI applies a unique approach which involves valuing properties in advance, using only genuine independent valuers such as RICS. A pre-valuing and survey process weeds out problem properties. They buy houses valued up to £130 000 and pay up to 100% of the property value, subject to a satisfactory rental valuation. The legal aspect is covered by a Deed of Covenant Advice, in which the original Seller becomes a Tenant. He has all the rights and obligations any other Tenant would enjoy. Should the Purchaser sell the property within five years of purchase, the property remains subject to the Tenancy.

RI and IPS believe there are four essential elements that support a successful investment process. These are:

1. The rent must cover the mortgage and other payments;
2. There has to be full occupancy;
3. Maintenance costs have to be as low as possible;
4. There has to be growth potential in terms of the area in which the house is located.

RI and IPS – powerful investment facilitators

RI has an excellent reputation for customer service and they take care of all the channel processes and communications. IPS, in turn, will ensure that this service is extended to its South African customers, and will guide investors through every step of the way. Buy and Rent Back is already a huge success in the UK, affording South African investors a unique offshore property investment vehicle ensuring a sound, short term return on investment with capital growth, excellent rent value ratios and most importantly, a positive cash flow from day one. Key to this type of investment thought however, is that it represents an asset diversification outside of Africa, in what is a fairly stable UK market place.

• A selection of existing homes from around the UK.
• A minimum of £20 000 required to invest.
• Prices range starting from £65 000.
• 5-10 year lease with a 5% escalation per annum.
• Cashflow positive from day one.

Documentation

FAQ	Master Cash Flow  Residential Investments

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