Frequently
Asked Questions about how to buy property for less and the services provided by
James Green & Co. These are regularly updated and I hope you will find them useful.
Should you have any other questions please feel free to send an email to
faq@jamesgreenandco.co.uk New
FAQ will be added as and when appropriate.
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Why should I use James Green & Co?
Can I get more information
on properties?
What is the Process to reserve a property?
What happens if there is a
property crash?
What happens if interest rates rise?
Once I have paid my initial Administration fee and Reservation fee on my first
property, what other fees do I have to pay?
How many properties can I buy from James Green & Co?
If
I buy off-plan how easy will it be to sell on before completion?
What happens if my
property is empty for a period?
Can I use my own solicitor or mortgage broker?
Is now a good time to invest in property?
Do I pay tax on my property profits?
Who will manage my properties?
Do you just sell UK properties?
Do you offer investment advice?
Are SIPPS still an option?
How much money do I need to begin property investment?
How do I join a property consortium?
Why should I use James Green &
Co?
We are professional property investors who understand the whole investment
process. James Green has been running property investment companies for several
years on behalf of investors and he is currently involved in several property
consortia with assets over almost £20 million as well as managing his own
portfolio of properties in the UK and the Isle of Man with a value of nearly £2
million.
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Can I get more information on
properties?
Yes, we always have much more information on properties, including detailed
specifications, floor plans, survey reports etc. We are happy to share these
with you where appropriate and to arrange site visits if you would like to see
the properties before committing yourself.
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What is the Process to reserve a property?
When you see a property that interest you simply contact us by telephone, fax or
email and send us your reservation fee. We will hold properties for a
maximum of 72 hours. If we have not received your reservation fee by then we may
accept offers on these properties from other clients.
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What happens if there is a property crash?
In the unlikely event that property prices fall we already have an inbuilt
"safety-net" of at least 15%. The most probable scenario is that house price
inflation will slow to 5-10% pa. The way we buy property is that we have an
immediate advantage over "traditional" investors. It is worth noting
that property prices in the UK have already (May) risen by more than the
so-called experts were forecasting for all of 2006. In fact the increase in
property prices in May was the biggest monthly increase for a year.
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What happens if interest rates rise?
On 4th August 2006 the Bank of England increased base rate from 4.5% to 4.75%
thus taking the rate back to what it was in August 2005. Many commentators were
surprised at the timing, but they all agreed that a rise was overdue mainly
because of inflationary pressure caused by gas, electricity and oil price rises
in recent months. Some commentators feel a further rise to 5% is likely before
the end of 2006, others disagree. Much will depend on the UK government's
ability to balance its budget so only time will tell.
It has to be pointed out that
In times when
interest rates rises, rents, as a product of falling property sales, rise too.
In any event there are a number of options when choosing a suitable mortgage
that can have a fixed interest rate option so you can shelter yourself from
fluctuations.
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Once I have paid my
reservation fee on my
first property, what other fees do I have to pay?
Usually 28 days after you have reserved your first property you will have to pay
our fees, normally this is 2.0% + VAT though there are some special offers
from time to time. This fee is held in
a solicitors "Client Account" until contracts are exchanged. The only other fees
payable are any normal ones associated with a property transaction. Usually if
the property is "off-plan" you will be required to pay 1% - 5% as a deposit to
the developer though again this varies. Sometimes you pay 5% of the gross price
and sometimes 7.5 or 10% of the net price. Do take care to check the exact
figures as arranged with the developers.
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How many properties can I buy from James Green & Co?
As little or as many as you wish. We cater for a broad investor base who wants
to acquire properties at a rate that is comfortable to them.
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If
I buy off-plan how easy will it be to sell on before completion?
This is a difficult question to answer as there are so many variables. Some
developments prove to be very popular with a strong demand from other buy-to-let
investors as well as from people who want to buy so they can live in the
property themselves. In such a case you may well be able to sell your contract
on at a nice profit very easily. However there are no guarantees and you might
find that you have trouble getting a quick sale at a price showing a good profit
perhaps because there are too many other investors trying to do the same thing
and this keeps the resale price down. In such a case unless you can afford to
leave the property empty while you find a buyer you will need to find a tenant
and this will mean that for the term of their lease (minimum 6 months is normal)
you won't be able to sell with vacant possession. This won't be a problem
selling to another investor, in fact it would probably help sell the property,
but may rule out buyers looking for a home of their own. The above applies to
properties in the UK. If you buy off-plan and without a guaranteed initial
rental agreement elsewhere, say Spain, Bulgaria, Italy, France, then you must
remember that you will be limiting your resale opportunities to other investors
or expatriates. The local population won't be able to buy as they simply don't
earn enough. Investing in rental properties in places like Prague are great, but
you will only be able to sell on to other investors. Properties which are cheap
to us are anything but cheap to the local population.
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What happens if my
property is empty for a period?
We will show you how to minimise voids and maximise rental returns. We are
professional landlords - not a "seminar" company who do not practice what they
preach.
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Can I use my own solicitor or mortgage broker?
We normally insist that you must use our own nominated solicitor as when we are dealing with
developments with several purchasers we hope you appreciate that we need to get
information from one source. Our professionals are experienced in the various
ways we finance property transactions. There is an advantage for you as the
solicitor only needs to carry out one set of searches and so can split the cost
over a number of properties and save you money.
As regards mortgage brokers, we can recommend our own brokers who act for our
own property transactions. We suggest that you contact our brokers and have a
"fact file" with them to discuss your requirements but you are welcome
to use anyone you like to arrange finance.
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Is it a good time to invest in property?
Yes -we believe that our experience and the discounts we negotiate make
investing in property very attractive.
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Do I pay tax on my property profits?
Unfortunately you do - BUT we can recommend advisors who will help minimise
the amount of tax you pay - quite legally - and who can help you formulate the correct
property "vehicle" for your portfolio. You might like to check out our
ways to buy property page.
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Who
will manage my properties?
That is up to you. If you want you can manage them yourself or we can put you in
touch with professional agents several of whom offer discounts to our clients. We
are happy to advise you individually on the various options available.
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Do you just sell UK properties?
No we have properties from all over the world. If we feel that there is a
particular deal that is particularly attractive we will offer it to our
investors. We are currently looking at deals in the USA, South Africa, Cyprus,
Spain, Portugal, France and Brazil.
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Do you offer investment advice?
No, we only offer our members current property opportunities. We are not legally
qualified to offer investment advice but can put you in touch with suitably
qualified professional advisors.
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Can I buy property using my pension fund?
Following the SIPPS debacle (see below) whilst is possible to invest in commercial property with no real problems,
investing in residential property either directly or indirectly is currently
much more difficult. However if you are interested in using your pension fund
for any property based investment then we can put you in touch with professional
advisors who specialise in this type of investment. For more information just
send us an email.
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Are SIPPS still an option?
For most people the answer
must be no. Gordon Brown, having
announced
that you could use a SIPPS (Self Invested Personal Pension) to invest in
property, and get up to 40% tax relief, as from 6th April 2006 then changed his
mind. See here for further information. However there
are still some ways in which a pension fund can be used. For more information
just
send us an email.
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How much money do I need to begin property investment?
Ideally you should have, or be able to raise by means of remortgage, £50,000.
However it is possible to start with as little as £20,000. You can also join a
property consortium with any amount of money from £10,000 upwards.
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How do I join a Property
Consortium?
Simply
email me to discuss. You can
also have a look here.
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