Due diligence for property investments

At Holmeshaw, we always say that we would never recommend a property investment opportunity to our clients that we would not invest in ourselves.

And we stand by that promise.

We want to give you the peace of mind that when you come to us, we have carried out vital research into our partners – property developers, holiday lodge developers/operators, lettings/site management. This research is sometimes called due diligence for property investments.

What do we mean by due diligence?

We offer a hands-on approach for property investment opportunities because we want our clients to benefit from both high yields and the best capital growth prospects. We want you to have the utmost confidence in our tailored service.

We, therefore, carry out a lot of research before we will work with a developer, checking their track record for delivering premium developments, before we are happy to offer the project as an investment to our clients.

Our research includes:

Developer

We check the credentials of the developer including:

·       Completed projects – were they finished to spec and on time?

·       Companies House check on the company and its directors

·       Contractor check – are they reliable?

·       Press/public relations – we take a look at articles and news stories about the developer, the directors and completed projects

·       Financials – credit check, filed company accounts etc.

Project

If the project is a new development, we will conduct research into the project itself:

·       Planning approval

·       Project time scale – is it realistic?

·       Finance – is it in place and ready to go?

·       Cost management, contingency plans

·       Contractors

·       Project details as a whole – purchase price, rental yields, length of investment and what happens afterwards

Royal Marbella Golf Resort is a boutique resort located between Marbella, Estepona and Benahavis - ‘The Golden Triangle’.

Location

We always conduct a thorough location check to make sure that the project is suitable for its purpose.

For a holiday park lodges for example, we will make sure that the location has everything required for the perfect holiday and is well-placed to offer a number of attractions for visitors, such as:

·       Area of natural beauty

·       Activities

·       Nearby places to visit

·       Easy to reach by car/public transport

It is also important to make sure that the yield forecast is realistic for the area, and that the location has a history of high demand for property, should our clients be looking to resell after a few years.

Check out our portfolio of developments and furnished holiday lets at Holmeshaw.com to discover more about each opportunity and the attraction of individual locations.

Contracts

Of course, it is very important that all contracts are reviewed so we can stand by our investment recommendations:

·       Responsibilities and ownership?

·       Assignment agreements?

·       Fee increase clauses or extra costs?

·       Additional side agreements such as management options?

·       Recommend solicitors and previous activity with the developer?

We ensure that we check out the finer details, so you don’t have to worry about them.

Management

We have key partners we work with on the lettings and management side of our property investment opportunities, with years of experience in park development, operations, and management, so the upkeep and operation of your holiday lodge/apartment and your guests are taken care of for you.

There is always an onsite maintenance and management team to attend to urgent requirements, which allows you to sit back and enjoy the rental benefits without any of the hassle normally associated with owning furnished holiday lets.

Design

It is important to us that both our clients and their guests enjoy a stress free holiday, with every amenity on site and a luxurious interior finished to a high standard.

All Holmeshaw investment properties are fully furnished with a premium finish and our holiday lodges are built to residential standard BS 3632.

Site Visit

Wherever possible, we will visit new developers and construction sites ourselves. This is how we have developed:

·       Our relationship with key partners

·       Our knowledge of the market

·       Our understanding of project locations

·       Our appreciation of the full site experience

Is property investment right for you?

Although we make sure we conduct the due diligence outlined above, it is also important that you ensure that investing in property is the right move for you and your individual circumstances.

We always advise our clients to take financial advice before taking the plunge, whether it is for personal or company purposes.

Here are a few things you should consider before making your decision:

·       Carry out your own credit checks for your peace of mind.

·       Check the financial rewards are worthwhile. Circumstances vary, and you need to consider the running costs and tax implications alongside the revenue from rental so that you can make an informed decision. In addition, investing in property is a medium-term investment, so you need to be sure that your capital can be tied up for at least five years.

·       There are some benefits when investing profits from a limited company into a property. For example, business owners who invest in holiday lodges can benefit from the tax advantage of full expensing up to April 2026. To find out more, read our article about the impact of the recent budget on the furnish-to-let (FTL) property market.

·       Check out facts and figures. Ask for the full rental history and research the location so you are satisfied with the income potential.

·       Take a look at the marketing and management of the site operator and that you are happy to be hands-off, leaving the day-to-day management and maintenance to them.

·       Timing. Consider the implications to yourself and your business over the next few years to ensure that you invest at a time that is right for you.

·       If an exit strategy is built into the project, ensure it works for your financial plans in the future. If not, it is worth thinking about one yourself so you have a plan for the future.

If you would like to know more about our property investment opportunities, email us or contact the team to chat about creating your investment, individually tailored to your circumstances.

Alternatively, you can request a general FAQ sheet to answer your questions.

As with all investments, Holmeshaw would encourage investors to take advice from a financial advisor before investing capital into property.