Q. How do you provide such high investment returns?
Property has long been understood to be a lucrative investment vehicle. Capital growth alone has averaged over 7% per annum over the last 80 years.
When you add rental income (net monthly cashflow) into the equation, it’s easy to see just how lucrative property can be.
As experienced property investors ourselves, we know how to find and source the right investment properties.
We also have the teams and contacts in place to ensure that properties are refurbished to the correct standard and within budget.
Q. You Mention HMO’s Often. What is a HMO and Why Are They So Popular?
HMO is an acronym meaning House in Multiple Occupation.
It refers to shared accommodation, where two, or more unrelated households reside under one roof.
There is added complexity involved with being a HMO landlord. E.g. Minimum room size requirements, additional fire and safety regulations plus the frequent need for additional licensing from the local council and sometimes the need to obtain additional planning permission.
However, many view the rewards as being worth the additional effort. Instead of letting out a whole property to one individual, or an individual family, with a HMO, there may be several rooms, which can be let individually, which often means greater profit for the landlord at the end of the month.
Even if a room is void (empty), the income from the remaining rooms is often more than enough to cover the monthly costs.
From the tenants point of view, the advantages of living in a HMO include having all your monthly bills included in the rent, so that they don’t have to pay for council tax, utilities, broadband etc. This is all covered by the landlord. Additionally, many folk enjoy the company that shared accommodation offers.
At Golden Egg Property we found that many regular high street letting agents do not offer HMO management as an option and those that do often don’t appreciate the added complexity involved and therefore offer a sub-standard level of service.
This is why we started to manage our own HMO’s ourselves and then subsequently started successfully providing this service to other landlords in the area (Preston).
If you are a HMO landlord and would like to know more about our services, please see below, or follow this link.
Q. How does joint venturing in property work?
Joint venture (JV) contracts can vary from project to project. However, put simply, all the investor has to do is fund the deal, fund the refurbishment and agree what level of involvement they would like.
Golden Egg Property will then find a suitable property, facilitate the purchase, obtain planning permission (if required), project manage the refurbishment, manage the contractors, furnish the property, obtain any necessary licenses, insure the property, tenant the property and oversee the ongoing management of the property and the tenants.
Net monthly cashflow is shared between the investor and us.
Any future equity release (refinancing) is initially used to repay all of the investors initial investment, so that they have none of their own money left in the deal. (NB. At this point the return on investment becomes infinite!)
Once the investor has all of their money back, any future equity release is shared.
Q. Please can you provide an example of a project, which shows potential returns.
Q. I am a tenant, but I would like to get onto the property ladder. Unfortunately, I’ve struggled to save enough deposit and my credit score is poor. Can you help?
In short, yes we can. Please click here for more information.
Q. I am a HMO Landlord but I don’t enjoy the hassle of dealing with tenants. Can you help?
Absolutely! HMO’s are our speciality. When we first became HMO landlords ourselves and wanted someone to manage our first HMO for us, it didn’t take us long to realise that the vast majority of letting agents just aren’t equipped for the specific challenges that HMO’s represent.
There is a huge difference between single/family-let property management and shared occupation (HMO) property management and while many high street lettings agents will offer their services to HMO landlords, few understand what it actually involves.
We manage our own HMO’s and we manage HMO’s for other landlords. We are fully conversant with all the specific rules and regulations that apply to HMO’s, including local licensing requirements etc.
We offer generic property and HMO management services for very competitive rates, which can be found here.
Furthermore, if your wish is to step back completely and enjoy an almost entirely passive income from your HMO, whilst also retaining ownership of it (and therefore also enjoying the capital growth that this brings), we also offer a full contract management service.
With this service we pay you, the landlord, a fixed monthly income, which is guaranteed whether the property is full, or empty. We also assume responsibly for all internal maintenance (excluding the boiler), utility bills, council tax, cleaning and day-to-day management of the property.
An example guide as to how our guaranteed rental model works can be found here.
NB. This is a bespoke service and contracts will be agreed with individual landlords based upon their requirements, the type of property, its location and current condition.