There is no denying that with property prices so low there is no better time to invest in UK property, however the need for high deposits and mortgage lending means it is increasingly difficult for the individual investor. The question is who is snapping up all the deals? Well, City Hedge Funds are eagerly snapping up distressed portfolios and delivering fantastic returns, but for most of us getting close to this closed group is a near impossibility. In fact research has shown that many high return investments are set up to specifically exclude the general public and those who could most benefit from such strong investments - you could say this is the ‘investment they don’t want you to have’.
However, Heritage Capital are promoting of a series of asset investment companies which offer ordinary people the opportunity to benefit from investment in a diverse portfolio of properties without the hassle or need for persoanl finance. These properties are bought at preferential prices and with investments starting at £1,000 are available for everyone.
Each asset investment comapany sources properties at significant discounts from market valuations and utilise a portfolio acquisition strategy which takes funds raised by share sales together with bank finance to 50 percent of purchase. Then by holding, managing and letting the properties over a medium term Heritage Capital are able to offer a great investment in which they are incentivised to acheive gross profits of at least 50% for the company and it's investors on liquidation of the portfolio.
With years of property acquisition, finance and asset management experience Heritage Capital identify suitable properties from a range of sources including banks, estate agents and other professionals within the property market. As a general strategy in providing its advice, Heritage Capital aim to secure properties at a 25 percent discount against RICS valuation. Heritage Capital will manage the portfolio on behalf of the asset investment companies, then after an appropriate period of time (typically between 3 and 5 years) the properties can be sold enabling returns to be paid to investors.
Alison Guyton, Head of Operations at Heritage Capital says “Given the great purchasing opportunities within the current distressed property market, we feel investors can achieve high returns through property. However, despite these returns, many investors don’t have the capital to purchase alone or don't want the complications of raising large deposits, being a landlord, or dealing with void periods. By investing in one of the asset investment companies advised by Heritage Capital, individuals get the opportunity to benefit from a diverse portfolio and its potential returns without the stress"
The UK property market has seen some stabilisation in recent weeks and with first-time buyer activity on the increase the signs are good for a slow but steady recovery. However, with typical mortgage LTV ratios still around 75% and rental coverage requirements of 125% it will be many years before we see individual investors being able to rapidly expand portfolios again.
All properties are fully managed by Heritage Capital and whilst the average investment is between £10,000 - £20,000, smaller investors with upwards of £1,000 can benefit from large diverse portfolios by purchasing shares in the asset investment companies.