PROPERTY INVESTMENT UPDATE 

 Dear Investor

These are dramatic and unprecedented times!

George Bush tried to sum it up in his usual unique way. The banking world is in chaos and the effects are being felt all around the world. Property is no exception and the current falls in the market are due to the restriction in available credit. Some of the biggest losers of the credit crunch have been property developers who can no longer sell their properties and the buy-to-let investors who rushed in during the good times to buy up city centre new build flats, regardless of the underlying economics! They now face the prospects of possible repossion or selling for very large losses as rental yields and affordability just do not stack up.

We are justly proud of the fact that over the past three years we have not been involved in one large scale off-plan project in the UK. Our motive was very simple, if our business is to last the test of time, then we must put our clients interests first. Therefore, despite the vast amounts of money we could have made by becoming involved with the many city centre schemes which arose in response to the credit boom, we carefully held our water because we felt they were overpriced and over hyped.

Despite our avoidance of most brand new property during the last three years, we have always believed that at the right price, brand new apartments and small houses are a very attractive choice for the property investor. As the current financial crisis unfolds, it has been apparent to us for some time that there will come a point where, because of financial pressures, big builders will have to roll over and unload their property stock by drastically cutting the price, that time has now arrived

Time to strike!

We have just secured from a very large UK builder price reductions of 35% from their already reduced prices. To put this in context, this will mean a brand new two bedroom apartment will be available from £75,000, down from £116,000! This kind of brand new apartment will rent for around £6,000 per year, giving a gross yield of approximately 8%. With interest rates on the way down, where is the downside?

As everybody knows the UK developers have all but stopped building new property since the onset of the credit crunch and have also seen a huge reduction in sales levels due to the restriction in mortgage lending. 

This means that their will be a short window of opportunity to grab these bargains as once they have sold the developers will have simply no further stock to sell. Secondly there is enormous pent up demand for cheap property and you are now competing not just with private investors but also local authorities and government funded housing associations who can buy in bulk. We believe that once the right price point is reached, these bulk buyers will absorb much of this brand new stock very fast indeed.

In order to proceed with a new build property most lenders will be looking at a minimum 25% deposit. The advantage to the serious investor is that they now have a clear playing field to purchase real bargains and acquire high yielding properties for their portfolios.

Numbers are limited so we are now asking anyone who is serious about property investment to pre-register their details with us and your enquiries will be dealt with on a strictly first come first served basis.

In order to reserve a property we will require a £500 reservation fee as well as Choices buyers commission of 2.5% + VAT of the purchase price.

You have nothing to lose and everything to gain from registering your interest. Do not look a gift horse in the mouth and use the current economic climate to continue your journey to financial security through property investment.

Choices Acquisitions and Investments

01342 840000