Join CityClub Today to Receive:
Investment agencies can help investors benefit from the specialist market insight, by locating top investment hotspots across the country. Often, investment agencies will scout investment hotspots and look for key factors to identify growth in the area. Agencies help investors find the ideal properties to achieve their investment goals. Whether an investor is looking for capital appreciation or high yields, an investment consultant will be able to find the best opportunities available.
Investors who opt not to use an investment agency are far more likely to invest in an area they know well. However, this offers limitations, for example, many investors are based in London, which is being outpaced by growth in the North of England. If an investor purchases property in an area which is not profitable, they could miss out on maximising their earning potential.
An investment agency will be able to handle all due diligence taking advantage of years of experience. Therefore, ensuring an investor’s money is secure, and the property will be of the standards expected. An investment agency is going to be very thorough and knowledgeable in this field, which is vital to make sure an investment is going to be successful.
Investors who decide not to use an investment agency will need to be sure to account for the cost of due diligence. If due diligence is not done correctly, it could cost the investor thousands of pounds in the future or in some cases cause the deal to fall through completely. Furthermore, the investor will want to be certain in the knowledge that they are paying an accurate value for the property, as overpaying can cause complications when it comes to reselling.
Investment agencies usually have good working relationships with reputable developers. By obtaining industry knowledge over a number of years, agencies will know the developer’s past work, financial stability and will have direct contact throughout the development process. This can benefit investors as the agency will be able to assure the investor of the quality of the finished development. Additionally, for completed developments, investment agencies will have reports completed for snagging and quality assurance, making sure the buyer knows if any further investment is required.
Investors who are working alone may struggle to make direct contact with the developer. However, if communication is made and the investors secure the property without researching the market, the result could be far from the result that was expected. If the development has a low build quality and is not to the specifications expected, the investor may incur additional costs to bring it up to standard.
As property involves large sums of money, investors are prone to scams. A reputable investment agency will be able to protect the investors from this. Usually, investment agencies communicate with developers directly, are able to access development sites and know the reputability of developers within the industry. Therefore, it is highly unlikely any investment agency will work with developers who have a bad reputation.
Investors who work alone may be at risk of being scammed. If they do not have broad industry knowledge. Some opportunities seem to be really exciting and due to the fast-paced nature of securing property; investors may pay fees before doing due diligence. Sometimes, the developer may be responsible and take fees for a property that they cannot fund. Otherwise, a private seller may take fees for a property they have no right to sell.
Investment agencies can often supply landlords with exclusive listings. These opportunities may be off-market, so competition is low. This will help investors secure a property which is not yet publicly listed, meaning they can secure the property and have priority choice of the units they want. Gaining early access to exclusive opportunities may help investors secure the property at the best price possible.
Some existing landlords will search the open market for investment opportunities. While this can be a good way of securing a fruitful opportunity, options are limited. Furthermore, if investors find an opportunity they are interested in, they could be outbid, as competition is typically much higher. Therefore, to secure the property they want they may have to bid above market value, limiting the potential return on investment.
If an investor is looking for a safe, secure, and profitable investment, it is recommended that they use an investment agent. Agents will be able to offer some of the strongest investment opportunities, the level of industry knowledge and experience required is difficult to garner at the rate of an investment agency. Therefore, finding a reputable investment agent may help investors earn more and risk less.
CityRise is here to help, with over a decade of industry experience they are always scouting for the next investment hotspots. Their goal is to offer investors the opportunity to secure high-quality property in order to achieve their investment goals. Once an investment has been secured, CityRise will even manage the property and tenants, giving landlords a completely hassle-free experience. If this sounds interesting, found out more, here.
Best Cities in Yorkshire for Property Investment
We have already established Yorkshire as a prime investment spot for property with fantastic capital growth potential. From its skilled sectors and...
The Growth of MediaCityUK
More homes and office spaces are being proposed for the growth of MediaCityUK. The thriving digital media hub in Salford Quays, Manchester, has...
5 Ways Tourism Benefits Property UK
Tourism is one of the world’s largest and fastest-growing industries. England’s tourism contributes approximately £106 billion a year to the...
Why Invest in Yorkshire Property?
Yorkshire offers more than just idyllic countryside. It has seen substantial growth in recent years and has become one of the most sought-after...