Most frequent questions and answers
What is ‘planning risk’?
The maximum uplift in property development deals can be gained through obtaining planning permission before building. Some of our projects involve this strategy.
A few come with existing planning in place so will be ‘build only’. Others will be purchased with a ‘planning flip’ in mind, i.e. they will be sold to build-only developers who lack planning expertise. Obtaining planning permission is not guaranteed, which is why you hear the phrase ‘planning risk’. However: we only purchase deals that work with and without planning, or those where our planning assessment reveals that the risk is low.
Why UK Property?
Our stable economy, and democratic government, makes UK property the number one choice for investors the world over. Of course, as everyone knows, property prices fluctuate with economic conditions. We factor this into the evaluation of our deals, and reject those which will fail in the event of significant economic downturn.
What is the minimum amount I can invest?
Investments start at £25K, but most of our clients invest more. Our Joint Venture investors receive the highest returns because they have chosen to partner with us (a higher risk option) rather than investing for guaranteed returns. Projected returns increase with levels of investment, with larger amounts generating the best returns.
How do I know I my capital plus investment profits will be returned?
Why invest in development rather than buy property?
The new buy-to-let taxation rules have made buying property with high loan to value mortgages a riskier choice than in the past. Most landlords will lack the leverage to buy below market value, nor the expertise to create genuine added value. So if your goal is to leverage your funds effectively, investment into professional development projects can offer a more profitable alternative.
For more information on current buy to let tax changes please visit InvestDevelop Capital Partners Facebook page.
My Professional advisor (lawyer/accountant/IFA) says investing in property development deals is risky.
IFA’s are qualified with regard to the regulated products they advise on. Accountants are knowledgeable regarding the Inland Revenue and reporting on income and expenditure. Lawyers are experts in brokering legal deals. Many offer complementary services e.g. tax and estate planning that are invaluable to investors.
However unless they have personal experience of investing in property development, or have spent time with us to understand how we work, professional advisers may not recommend our services because they do not understand them.
No-one can advise accurately on the risk of property development deals unless they have experience in this field. Therefore we need to explain the risks and merits of our deals to you personally, before sharing this information with your other advisors.