Property investment can be a tricky process and there are also many pitfalls to be aware of. Unless you really know your stuff, it can be a daunting investing outside of your home turf. For this reason, many people turn to property investment agencies to help guide them through the journey to becoming a successful investor.
What is a Property Investment Agency?
Property Investment Agencies are companies that are set-up to help guide you through the investment journey and avoid any pitfalls. They are particularly useful if you lack the time or expertise to do it yourself or are trying to invest remotely.
The scope of their services varies, but, in general, they:
• Source suitable properties through their network of contacts
• Help with the purchase process, liaising with solicitors and mortgage brokers on your behalf
• Manage any refurbishment works required
• Manage the property for you, or connect you with someone who can
Some have a “stock” of properties that they send out on an email list, whereas others “source to order”, based on your particular requirements and circumstances.
The advantages of a Property Investment Agency
✅ They offer a hands-free service
Most people don’t have the luxury of being able to commit all their time to furthering their investment portfolio. If you work for a living, you’ll have noticed that there is little time to do the extensive legwork that needs to be done in order to guarantee a successful investment. Property investment agencies make it their business to secure their clients a good quality, sustainable investment property, which means that the client can sit back while all the hard work is done for them.
✅ They know where to look and what to look for
Knowing the best areas to invest in and what to buy can take years of practice to figure out. While it is possible to do the research yourself, you may not have access to the information or the contacts that a property company may have. The strategy may also change depending on what is happening in the economy and what your personal circumstances are, so having a property investment professional in your corner will help ensure you buy the right asset.
✅ They can cut down on the admin
Property investment comes with A LOT of paperwork. But you could be spared much of the hassle and back and forth if you use a professional service. Agencies will often deal with solicitors and brokers on your behalf; and while they can’t take all the paperwork off your hands, they can remove a lot of the stress by helping you complete it.
✅ They can get a discount
Often, the agency’s connections and in particular, their relationships with estate agents, mortgage brokers and solicitors, will allow them to secure a discount in excess of what you could achieve on your own. Part of the discount is because they are experienced negotiators, but a lot of it coms down to the fact that they have credibility and bulk buying power, which estate agents LOVE!
✅ They can help take care of the property
Property management is one of the key aspects of property investment, but without a good agent, can easily be the most laborious one! Whether we’re talking about arranging rental agreements, sorting out repairs or dealing with tenant requests, many property investment agencies either have a management arm to their company or know a good letting agent who can take care of this for you.
✅ They help you avoid making expensive mistakes
Many property investment agencies come with years of experience and buying knowledge. They know their stuff and their track records are testament to the results they achieve for their clients. If they’re doing their job well, they’ll already have filtered out the many bad buys and help you avoid mistakes that are inevitable unless you have been through and experienced them yourself.
The disadvantages of a Property Investment Agency
❌ They will charge you
Obviously, nobody is going to work for free. Ultimately, you are paying for their experience and their relationships. Their fee will be a cost that you wouldn’t have if you did it all yourself, but you need to balance this against the cost of your time and the cost of making a mistake and ending up with a loss-making property.
❌ They need your trust to work effectively
Along with a set amount of your money, you will also have to give these companies a lot of your trust. Although putting thousands of pounds in the hands of a company can be a scary prospect, some simple online due diligence can go a long way. As with any industry, there will be some disappointing ones and others that really stand out. See what others are saying on review sites such as TrustPilot and Google Reviews, and if in doubt, ask to speak to a couple of existing clients so you can get the real, unfiltered truth about them.
❌ They may not include all the costs
There are a lot of costs that come with investing in property, legal costs, mortgage fees, insurance, lettings etc. It is easy to be lured in by great returns, but they only work if they include all the fees. A great question to ask is: “What is not included as part of the service?”. This should separate the wheat from the chaff and if there is no answer or the answer is unconvincing, walk away immediately.
Property investment agencies that offer a sustainable return are a good thing, as long as you don’t mind taking a back seat and putting your faith in the professionals. What you need to look at is the bigger picture of what you are trying to achieve and if the return calculations include their fees, there’s no real need to be worried.
The key word in the above paragraph is “sustainable”, as if you attempt to invest in property on your own, you won’t be able to get any assurances that the investment will work. You’ll be taking all the risk yourself and relying on your own knowledge and expertise. Yes, you will save some money, but if you end up making a mistake, it could costs you more than double.
In our opinion, it pays to trust the professionals.
“Of course, you are going to say that, you are a property investment agency!” We hear you shout.”
Yes, you have us there.
We are a property investment agency, but what makes us different is that our overall goal is not just to get you an investment property.
What really makes us different is that we dig a little deeper to understand your story, what you are trying to achieve, why that is important to you – and how we can help.
With Lifestyle Property People, you are not just a number, you are one of our valued clients and part of the Lifestyle family.
Although profit is necessary in creating a sustainable business, we don’t believe it is our end goal. Instead, we seek to play the long game – to serve our clients and educate our market, helping you create long term wealth for yourself and your family.
But, don’t just take our word for it. Why not take a look at these real life case studies from clients who are now part of the Lifestyle family. Click here to read them now.