A popular way in which to consider investing in overseas property is by buying as a group
Click here to see the flythrough the Melia Dunas Beach Resort on Sal Island Cape Verde.
Buying as a group
You can establish a group to invest in The BMelia Dunas Beach Resort. A group of colleagues, friends or family members could get together and purchase property. The purchase contracts for the property are prepared to state the names of each individual buyer.Here are the benefits of creating an investor group:-
- Reduces each individual investor/buyers exposure to risk in a given property market. Rather than investing in one property, by buying in a group you could spread your available investment into other markets with your group. Allowing you also to buy other property in other markets collectively.
- Mortgage finance at completion of the property(ies) can be based on the income of all investors in the group i.e. if there are 4 buyers, 4 individual incomes could be taken into account for lending.
- By leveraging your money you can achieve a larger investment, and benefit from growth on the gross purchase price of the property i.e. the total initial investment for example could be 30% of the purchase price which would be split between each investor, however each investor will benefit from growth on the gross purchase price not just the 30% invested which in turn gives greater returns.
- Buyers with little or no cash could look to borrow money to invest. Unsecured lending is still widely accessible in the UK regardless of many major banks tightening lending criteria. Up to £25,000 per individual could be borrowed (subject to status). The investor/buyer could treat this loan as an investment vehicle and make the monthly repayments or you could use 100% Finance (subject to terms and conditions)
- Allows the purchase of higher value property using the buying power of the group, property that may not be affordable for just 1 member of the group. Enabling the group the benefit from higher value property, likely to be larger and better located which in turn will bring higher returns and benefits.
- Groups can purchase using a Self Invested Personal Pension (SIPP) and syndicating the investment and making their purchase more tax efficient.
For more information about this investment call us on +44 (0) 121 616 5019 or 0845 130 9011 or complete an Enquiry form.
call 0845 130 9011 or
+44 (0) 121 616 5019 (if outside UK)
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