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Hi all, new to these forums and threads. I had a meeting last Thursday with this company. Usual set up offering discounts on new builds/off plan. I went in with my most cynical hat on but I must admit they did almost convince me. They have one single fee of 2.5% finders fee and provide all other time and services free.
Let me know if anybody has any thoughts on them through this thread please.... |
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Hello Asghar
i've had a conversation with them and was told i need to outlay approx £25k-£50k intial,wanted to know how much money i had and how much i could write a cheque for now seemed a bit of a sales man if you ask me
however i must stress this was only a 15 minute phone call
Cheers Damian |
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Hey guys, I am MD at YourPropertyClub, Brett Wood
Just wanted to clear up what Damien has said. You don't need to outlay £25-£50K to the YourPropertyClub.com. You outlay it for the properties. We work with people that want to build a portfolio and you need money for that. We suggest having a minimum of £25K but certainly more like £50K.
We get a lot of calls from people who have no money and simply want everything free... Well we give the education, its on the website. http://www.yourpropertyclub.com but we don't want to waste our time with people that are not in a position to invest. Hence the questions at the start.
Damien I am happy to take you through exactly how this works and am sorry that you felt this too salesy.
Live with passion,
Brett Wood |
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Would not touch any new build development that offered below 20% discount.
Believe me been there done it......
a fool and his/her money...........
I know as i was that fool one time. |
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Wakey wakey everybody - there is no such thing as a genuine discount. Ever wondered why the vast majority of off plan is in the North of Englnd and is a two bed apartment? There is a massive oversupply of new build in the North - find that new build 15% discount in the south east (outside london)???. If a property could be sold at the higher value why wouldn't the builder sell it at a higher value, or the property club buy it itself? Beware the bullshit and source your own properties that you know are genuine! http://www.offplanrescue.com
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There are reasons for genuine discounts Paul. Some builders have to sell off plan because of their development lender's requirements - high lending means the banks sometime need to take the risk out of the loan and stipulate pre-sales as part of the terms.
The developers certainly don't want to sell off plan at BMV and they certainly would prefer to sell them at OMV further down the line but this is one reason for discounts and one which I am involved with but only in small developments of say max 20 units. Also we do buy in the developments we offer! Having previously been a letting agent for almost 10 years I know what to look at for and what to avoid and as such advise investors accordingly.
By all means avoid "the runt end" of developments where open market does not want them and developer wishes to finish the site because the public and local investors have already ignored them or there block is so big that they can only move them to investors creating problems further down the line for rentals and resales.
Please don't tar all discounts as rubbish - by all means it is highly recommended to carry out due diligence. But there are genuine ones out there! |
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Actually buying off plan from a developer who needs the finance because they can not afford the commercial finance themselves is very risky, it actually means the developer can't afford to finish the project!!
End development purchases are a completely different matter - I have no problem with buying from small builders who may have the opportunity to realise a profit rather than wait for a crap estate agent to not sell for them and charge them 1.5% for the priveledge but off plan is crap unless you can afford it! You rely on 'valuations' (and yes a lot are manipulated or just plain bent, and I could prove it)that are valuing plans not bricks and mortar, mortgage rates are unquantifiable and the offers only last for 6 months and how can you assess rental valuations 2 years in advance? People made money from off plan because the market worked in their favour, the market will no longer carry your investment as rates have moved higher and most new build is centred in the North so there is an oversupply - if you are buying off plan now then in my opinion you are not a property investor but a mug. I have come across so many complaints from investors from the biggest property clubs to smaller clubs whose intentions are good but who don't know what they are doing. I have been involved in property for 19 years now, am a fully qualified financial adviser and mortgage broker and own a mortgage packager as well. I see the truth on a daily basis and although it hurts off plan is not a viable investment - people are just too lazy to source real opportunities for themselves!
My message is clear - don;t do off plan |
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I think you have got the wrong end of the stick relating to my example. The banks are lending the developers all the money necessary to complete the development but only on the basis of pre-sales.
I was a professional letting agent for almost 10 years ARLA, RICS, BSI and IIP registered and have seen problems that you mention particularly in places like Manchester City Centre. I know where and what to buy and how to present a property. How to avoid saturation levels and overvalued stuff.
But I myself bought off plan just outside the Manchester City Centre in an area of high tenant demand and no big developments. Tenant has stayed 2 years now from year dot and I have just remortgaged with a valuation £15,000 over what the market price was in 2004!
My offerings are select and considered (most are rejected)and yes there is always an element of risk with off plan but as I state you are making a generalisation which in many cases is true but to put all these property types in one pot is frankly wrong. My own experiences and those of my clients prove this! They are the exception to your rule.
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Rupert I don't know what you paid for the property that you mentioned in 2004 but you state that it has just revalued at £15000 higher than the 'market price'. The market has risen in the 3 years since on an annual return basis of over 10% compound. I'll be generous and say that you paid £85000 on the discount price (market value £100000) that would mean unless you paid less than £85k for the property you actually did not get a iscount but paid the true market price in the first place.
If new build is such a great investment why do so many mortgage lenders not lend on them anymore? |
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"Actually buying off plan from a developer who needs the finance because they can not afford the commercial finance themselves is very risky, it actually means the developer can't afford to finish the project!!"
One major thing overlooked...If there is NHBC coverage and has been inspected by a member of the NHBC (usually at the very early stages of the build program), your exchange deposit, typically 5% will be insured afainst the developer going bust. |
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Above i was referring to the initial inspection. The final inspection results in the NHBC cover note being issued.
There are other warranties that also have this out there but you do need to check what each one covers you for. |
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I would disagree with comments made about buying property at the end of the development. Developers make money by selling quick and getting off the site so they can move on to other projects. I have just recently sourced a number of units in Swindon with 20% discount when a week before they where selling units with just 5% and carpets. If you are a professional property sourcer and can deliver the goods time and time again you will pick up these deals. Thus if anyone has clients looking for deals please do not hesitate to contact me.
leeforbes@gmail.com |
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we hold trainning sessions and we dont charge a thing plus we guide you all the way and dont charge a finders fee we source proerty at a deal.
Abroad is the best place to make your investment count we dont hassel you we will even train you how to manage your property. And how to cash flow you property so you make the maximum amount of money.
we even have a millioners club so if you want to find out about us go to our website and register your interest at.
www.sam-may.w-wideproperty.com
sammaypremier@yahoo.co.uk
Call Sam on 07956684117 dont worry we wont hassel you. |
