Acquiring an Investment Property

The brief

Garrington were approached by a new client who required assistance in acquiring two investment properties to start their investment portfolio.

The client’s private bank had already confirmed that the lending was possible for such a purpose, but the client was finding it increasingly difficult to appraise and secure opportunities.

The client wanted to obtain high-quality investment properties. Garrington sought properties that would meet key standards for investment:

• Central location close to amenities and transport links
• Property that would appeal to tenants and buyers for future resale
• Strong yield figures
• Good long-term capital growth prospects

The search

Garrington used their extensive experience together with market contacts to appraise all off and on market opportunities. After previewing and reporting on many options, two opportunities in different price bands stood out.

Garrington, through its knowledge of the local market, had evidence that 1-bedroom and studio units in this location were particularly in short supply, as many nearby developments had been largely two-bedroom apartments, leading to an oversupply.

A high-quality one-bedroom apartment was purchased early in the construction programme of a development being built by a national house builder.

An additional studio unit was purchased in a central location pre-market, allowing the client to make a saving from the open market value and avoid a competitive bidding process.

Conclusion

Both investments are now returning a good yield, let to high-profile, professional tenants. The units are located in a highly desirable location in a popular development offering excellent future capital growth potential.

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