Invest UK 英国

Plan, acquire and manage properties in London and all major UK cities.

INVEST UK

Deciphering the UK market is like trying to figure out a Sherlock Holmes story with all its twists and turns. For years now we have been seeing u-turns after u-turns that send the GBP bouncing. The economists have just about given up trying to forecast anything about.

But in an interesting turn of events, Boris Johnson become Prime Minister proceeded to surprise everyone leading Labor to a record election win. In the process he managed to seal the date of Brexit to 31 Jan 2020 with an transition period through 31 Dec 2020. The market went on an euphoria that saw the GBP jumped but then reality quicky set in with doubts about how the economy is going to perform its painful transit out of EU. So yes while Brexit is firm, nobody can be sure where the economy is heading at this point.

However with a relatively tight rental market, it is generally a good time to engage the property market. While short term (1-2 years) fluctuations are inevitable, the mid term outlook is positive given the number of investors waiting to pounce. Already many institutional and high net worth folks are starting to pour into the market last year and we should see retail investors follow suit soon. Long term however, we suspect the northern cities will provide much more headroom for growth than London.

• Discovering
  
• Sourcing
• Acquiring
• Financing
• Managing

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DISCOVERING
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Generally buying an UK property is relatively easy for a foreigner. As long as one is clear and comfortable with the cash outlay required, and qualifies for laon which can be sourced in Singapore, Hong Kong or UK itself. However, head to the north cities and lending options narrows and can get tricky.

Particularly for UK, it is even ore important for the buyer to be clear about their objective to purchase a property there. Buying for long term growth, prestige, wealth preservation or education can mean  different markets that differs quite significantly.

• Understand the motivations whether it be for own use, investment, leisure or legacy planning.
• Investigate the financial profile including capital outlay budget, borrowing capacity etc.
• Determine the preferences in terms of cities, locations, asset type, configurations and lifestyle.
• Strategize the approach in terms of financing, tax, ownership and asset selection.

Such work prior to acquisition assures that we are able to source the right asset using the best approach thus minimizing subsequent risks.

SOURCING
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During the discovery process we often find discrepancy between what the clients have in mind and what makes sense when buying overseas,. May buyers come to us with preconceived ideas either due to their own local investment experience or misconceptions from misleading marketing.

When sourcing an Australia property, we not only take into consideration buyer preferences and needs, but also market realities and sensible strategies. Matching them to find assets that will best perform to buyer expectation. In the soucing process we will take into account the following:

• Properties that fit buyer requirements and profile as well as alternatives.
  
• Strategies to maximize investment potential and returns.
  
• Demographics of the area to determine price points and property types
  
• Economic cycles that might affect prices and growth potential.
  
• Due diligence on projects and developer.
  
• Provision for future plans of buyers if there be.
  

Once the above factors are taken into consideration we can then look to identifying the right property for the buyer.

ACQUIRING

The process of acquisition is seldom as simple as a lot of marketing agencies tend to make them to be. Standard sales and purchase agreements are provided by the respective real estate institutes of each state (REIV for Victoria, REIWA for WA, REIQ for Queensland and REINSW for New South Wales). However, you will often find variations and additional terms separated stated by the developers. It is important for buyers to identify key variations that might impact their investment. The key here is not about de-risking the contract, but rather reducing the risks to a manageable level. In acquiring we will assist clients in the following:

• Providing a budgetary financial analysis that includes outlay and cashflow projections.
• Providing assistance to review the contract together with the appointed legal representation.
• Negotiating terms and incentives for the purchase.
• Administering the entire contracting process including paperwork and monetary transfers.
• Sourcing and recommending financing for the purchase.
• Assisting in the appointment of property managers, accountants, lawyers etc.
  
• Managing the final settlement in coordinating with the various parties.
  

Through a rigorous managed process we provide buyers with a comprehensive process to ensure that your acquisition of an Australian asset proceeds smoothly.

FINANCING
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Financing a property has never been more difficult in the last 3 years as we saw Australia authorities tightened lending to foreigners which has seen repercussions from buyers failing to obtain loans to settle to major Australian banks closing their branches in some countries such as Singapore.

Fortunately, private lenders as well as foreign banks have stepped up their game albeit loan establishment costs and interest rates. The truth is borrowing for Australian property remains complex especially for the non-standard cases such as self-employed or commission based income earners.

Our client service department works doubly hard today to make sure that our buyers are able to secure a loan, sometimes even before a contract is signed. We...

• Identify lending institutions base on buyer profile, asset location, asset type and buyer's residency relationship with Australia.
  
• Connect buyer to the respective lenders to apply for loans, initial approvals etc.
  
• Advise on the entire application process to ensure successful application
  
• Coordinate on behalf of buyer for valuations and various legal process.
  
• Coordinate on loan disbursement with the lender for the property to exchange hands.
  

We cannot overstate the importance of financing when it comes to acquiring Australian properties and it is our opinion that buyers should refrain from buying if unable to obtain a confident level of certainty in being able to obtain finance.

MANAGING

Property management is about the somewhat mundane work of tenanting the property or operating the asset to obtain consistent income. In the case of Australia the work is relatively easy in comparison with most Asian countries as its property management service is rather established upheld by a strong culture of social responsibility. Hence tenant delinquency is much lower by comparison. Hence Landlord insurances that cover most of the potential high cost risks are widely available and affordable. Our role in property management would be to assist buyers in the following:

• Recommending of a property manager or operator and accountant.
  
• Advising on the insurance required for the asset.
  
• Ensure that a tenant is placed at the soonest.
  
• Advise on the various tenancy questions that buyers might have as they arise.
  
• On occasions, support buyers in major endeavors such as eviction, renovation, refinancing etc. at additional costs.
  

Generally however, Australia properties are comparatively easy to manage and most would go through years of ownership without major challenges in comparison with many other markets.

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