Having made a successful investment purchase through Garrington in the East End of London in March 2015, our clients once again called upon Garrington to search for a further rental investment property to add to their portfolio. They were particularly interested in exploring the potential uplift in value being created in the Ealing area of West London, generated by the construction of Crossrail.
THE RIGHT INVESTMENT
To begin with, the search focussed on conversion flats in good order, but the supply and/or standard was low and Garrington suggested considering one of the numerous new developments that were being built in the area. Garrington previewed a significant number of properties for their clients and arranged several ‘property tours’ so that they could view a varied and interesting selection. The clients then recognised the value of purchasing a property off-plan, even though it would be some time before completion. It was clear that the preferred development was attracting competing interest and this was amplified when the Chancellor announced that a 3% Stamp Duty surcharge would be levied on additional homes from April 2016. Garrington sourced an off-plan flat in a highly regarded development, a short walk from the soon to be constructed Crossrail station. Although this property was not listed on the normal property platforms, Garrington’s long established relationship with the local agents ensured they were given early access. Once the clients decided they wished to purchase the flat and despite competing interest, Garrington were determined to achieve a competitive deal for their client
NEGOTIATING THE NET POSITION
After extensive research, not only in terms of the selling price but also the property’s rental value and likelihood of attracting good quality and sustained tenancies, Garrington submitted their findings on value. Through their experienced negotiation, Garrington were able to agree a 6% (£30,000) reduction on the sale price and ensure the transaction was completed before the Chancellor’s deadline.
A SUCCESSFUL CONCLUSION
When entering the market, the second time the client was faced with a more competitive environment, as well as a shrinking deadline once the Chancellor’s announcement was made. Nevertheless, Garrington not only were able to source an excellent investment opportunity ahead of the open market, through their extensive market knowledge, but they were also able to negotiate a good reduction and achieve a purchase against a firm deadline.