Look after the Equity in your investment property
Now you can hedge against market fluctuations!
The New ‘Must Have” For Investors - The perfect EXIT Strategy!
For professional property investors, the Cenoption is a must-have product to use within your tool-kit.
Consider this, If you could purchase a property for £70,000 which has a value of £100,000 and be able to lock that £100,000 as a resale value, irrespective of the market conditions, you are effectively ensuring a return on your investment and profit with an Cenoption which can be exercised between 3 to 10 years (you choose!) from taking out the Option Agreement. Securing your £30,000 profit from the day of purchase.
Why?
Take a look at the graph below. Many of the ‘new wave’ of property investors came into the market around 2002-2003. If you look at the price of property in the graph at Q4 2002, you will see that the price and value of the property was about £130,000.
It is also true that most property investors plan to keep property in their portfolios for between 5-10 years.
Now, at the time of purchase it seemed like nothing could go wrong, in fact those property investors who bought in 2002-3 saw massive growth in equity. This growth lasted quite a long time, and if you were lucky enough to sell at the top of the market, you would have made a tidy sum. The reality is that most investors had no idea where the top was. By then, it was too late and to sell at all, you’d probably have to discount to get rid of the property.
Lock in your PROFIT from DAY ONE
If you now look at the graph again, you will see that it goes up to Q4 2008 and it just about to hit the underlying trend. We know that at this moment in time the prices have fallen even more. In fact they are at roughly the same levels as they were in 2002-3. If you wanted to exit the property now, you would have to sell for at least 20% below the value figure. In simple terms you would loose money on the deal. Having the option in place would have meant that you would have secured your original gain on purchase. Locking in the original £30,000 profit.
A New Approach To Residential Investing
With a Cenoption in place, you need never be in this disadvantaged position again and can invoke an exit (sale) at any time, within the 3-10 years under contract. An important point to realise here is the critical value of utilising this product in a market which is RISING OR FALLING. Such ‘hedging structures" have been used in commercial property for some considerable time. If values are falling, yields begin to drop, rental income diminishes, tenants become scarce or interest rates unmanageable, you may wish to reconsider your position regarding ownership of an investment property. The Cenoption simply gives you options which others in your position would not have. Simply line up the final ‘move out’ date of your tenant with the final handover of the property (which requires Vacant Possession) and you have a seamless transfer and exit. No agents, no lengthy marketing periods with disappointment and uncertainty, no auctioning at ‘fire sale’ prices, no negotiations and no void. PLUS, you realise your BMV profit.
Up Or Down?…Either Way You Win!
Once your Option is in place, consider this;
If values rise, YOU WIN! – because you’re making equity as time goes buy, and this was always the aim. Great!
If values fall (even drastically) and you’ve got BMV profit or equity from purchase or prior gains YOU WIN! Because you simply realise the profit from your BMV purchase or existing equity. Great!
Wouldn’t it be a different world if you KNEW that regardless of market forces, your investments were shielded, sound and exitable?
Based on that thought, NOW would be a good time to source that new BMV investment!
Where Can I apply This New Strategy?
This product can be used for Off-Plan property (with RICS Survey), New-Build or newly purchased property. It can equally benefit property you’re currently purchasing, or even looking to purchase. Remember…THE VALUATION IS FREE!. Options can be rolled out over just one fresh or existing investment, or be utilised across a whole diversified portfolio. Since the Cenoption rides on the property itself, (NOT the owner), you may place as many options as you like.
And…
The Option is fully assignable to future owners, be they private or institutional. This is a bonus when selling to other investors if values rise, as they will inherit your ‘shielded’ status…another great feature! The Option is not a charge or encumbrance on the property, nor does if affect your mortgage arrangements in any way.
Any Obligations?
Your general obligations are to maintain the property, ensure relevant insurance policies (i.e. buildings insurance) are in place and not to make any structural alterations or additions to the property without the prior written consent of the providers, who will normally give permission as long as the alterations do not devalue the property. Full details will be clearly stated within the Option Contract.
How Do I Shield My Investments?
Simply Apply Now
*All prices exclude VAT unless otherwise stated*
