Question & Answer
Below is a list of questions that have been asked by new and experienced investors alike. If you have a general query hopefully you will find an appropriate response below. If you cannot find an answer to your question please do not hesitate to contact us and we will be happy to extend our knowledge to you.
Q: Is there a fee to become an Investment Partner?
A: No. Our investment alert emails are completely free of charge. Once you register, you will also have access to our secure areas where you will be able to view details of all our developments, along with the facts and figures.
Q: Why are developers willing to offer exclusive and discounted off-plan properties?
A: Selling properties in bulk eliminates a great deal of the time and administration involved in selling to individuals, also significantly reducing marketing and estate agency fees. This approach can very effectively kick start a development launch, encouraging other sales, and be helpful to sell off any end of range units.
Additionally, gaining commitment for purchases prior to building enables a developer to secure funds from financial institutions to move onto the development’s next phase or a new project.
Q: What types of properties do you source, and where?
A: The vast majority of our opportunities are off-plan, since this approach provides a healthy return on investment for minimal financial outlay. We recognise that everybody has specific investment criteria and personal circumstances, so we offer properties both nationwide and abroad.
In addition, we source resale, commercial and leaseback properties, to meet individual investment needs, enabling you to build a balanced portfolio.
Q: Why off-plan?
A: In addition to benefiting from significant discounts, on properties often exclusive to Claremont in many cases the property’s value also grows substantially during the course of the build program. This increase could be quite significant since we offer properties usually due to complete at least a year in advance.
Furthermore, our off-plan property incentives can include exclusively arranged rent guarantees, added value extras such as car parking, and the lowest possible deposit requirements for even more peace of mind.
Q: Do I have to make a commitment to purchase a minimum number of properties?
A: No, you can purchase as many or as few properties as you like.
Q: How does Claremont generate it’s revenue?
A: Claremont charges 3% of the list price of the property, plus VAT, or £3500.00 plus VAT, whichever is the greater. This fee is payable on reservation, providing an all inclusive service from start to finish.
We make no charge to become an Investment Partner with us.
Q: Do I have to buy property as a long term investment?
A: There are different property strategies that you can adopt, in order to fulfil your financial goals. Whilst we generally recommend that property is held as a long term investment some of our more experienced investors adopt a buy to sell approach as one way of very quickly building an extensive portfolio.
Click here for an example case study of this approach – which we would be happy to discuss in further detail with you.
Q: What if property prices fall?
A: As house prices fall the demand for rental properties increases. Purchasing well below market value initially also ensures the property has sufficient equity to always cover any market fluctuations.
Q: How important is my income?
A: The rental income of the property is more important than your income. Nevertheless, your income, credit situation and general financial stability are relevant to a lender.
Q: What tax do I have to pay?
A: We advise that you take tax planning advice when you start to plan investing since, arranged properly from the outset, you can take advantage of tax allowances and relief, and reduce your tax liability, making property a very tax efficient investment method.
Q: Do I need to use your Mortgage Broker or packager?
A: No. But, you may want to consider using our broker for speed of process. Many of the properties we offer are on developments with a specific closing date and in the interests of every client involved in one of those purchases we need to have full knowledge of the status of that transaction and have as much control as possible to ensure completion on time.
It is worth noting, for your convenience – and peace of mind – we only choose Mortgage Packagers that have the knowledge and expertise to manage these specific types of transactions on a regular basis.
Q: Do I need to use your solicitor?
A: Yes. For exactly the same reasons as above – speed, control and expertise.
Q: Do I need to be concerned with interest rate increases?
A: With every investment the decision to go ahead or not should be based upon whether the property, with current and projected market values, all discounts and any rent guarantees taken into account, offers the potential for sufficient capital growth and /or rental yield, according to your preference.
If these figures make financial sense then the current interest rate (which can, of course, be set by choosing a fixed rate mortgage) needs to be viewed as just one factor within the bigger picture of your portfolio building strategy.
Q: Do you provide investment advice?
A: No, we are not qualified to give advice on investments. We simply advise on current property opportunities.
