Our objective is to facilitate at least £500k in new property purchases each year.
PORTFOLIO GROWTH PLAN:
Despite the increased costs with buy to let properties we see an opportunity to make excellent returns for our investors at a time when conventional interest rates are delivering relatively modest returns. Our goal is to have a portfolio of 85 revenue generating properties in place by the end of 2023.
We will be targeting properties at the lower end of the market with high yielding returns, with a budget in the North West and East and London of between £25,000-£35,000. We will also be looking to purchase properties in London. These will understandably be of higher value and we are targeting up and coming areas with high capital growth potential.
Our objective in year 1 after securing our initial investment of £500,000 is to deploy the capital as soon as the amount has been raised. This gives us the flexibility of acting quickly once we are able to find properties that fit our criteria. It also means we can close on multiple properties at once, or spread them out depending on availability.
In year 5 and 6 we will look to purchase property in London to diversifying our portfolio. In these years, we will be investing in less property but should see a greater capital appreciation of the structure.
At present the best returns are in North West and North East. Our initial focus will be sourcing properties in these areas. Over time, we expect to expand to other areas of the country, led by our research capability. All property purchases will fit within our 4 investment pillars.
We will also look to include some properties in up and coming areas in London which although will require more upfront investment will see capital increases at a steeper rate. Buying outside of the North West and East will also help to diversify the portfolio.
In the long-term, and with investors endorsement, we may look at international opportunities in high potential international markets such as Spain, France, Malta and Portugal. This would also help balance the portfolio against a significant downturn or economic event in the UK.
PROPERTY & TENANT MANAGEMENT:
We will manage all of the central administration related to the portfolio, including research, attending auctions, negotiating for and purchasing properties, managing agents, lawyers and surveyors and managing any renovations and upkeep requests.
As part of our relationship with management agents they will oversee tenant screening, letting management and rent collection. This gives us the added protection of tenancy security on rent.
The combination of our project identification and central management and engaging managing agent ensures we are sourcing the best investments and ensuring they are effectively managed, allowing our investments to be as secure as they possibly can for our investors.
While our objective is to build a portfolio that delivers a consistent return, we will consistently monitor our portfolio both in terms of capital gain and rental yield and we may choose where favourable to sell some of our existing to ensure they are delivering the best return on capital employed, versus opportunities elsewhere.