Garrington had been instructed to seek an investment property that would be able to produce a good rental yield and positive capital growth in London.
With a cash budget, the search brief was to find a new build or modern flat, with low maintenance involved. There was little preference given on the location, with more emphasis on the importance of seeing capital growth potential that the property would be highly appealing to professional prospective tenants.
THE PROPERTY SEARCH
With the client only available to be in the UK for a short amount of time, Garrington proactively search for suitable property in desirable London locations. Following property previews, Garrington swiftly eliminated and shortlisted suitable properties for the client to view on an accompanied tour during their time in the country.
An extensive property tour was conducted over two days; from those properties viewed, Garrington discussed additional preferences with the client, consequently further shortlisting those developments that did not tick all the boxes.
From research undertaken by Garrington the best investment credentials suiting their desires was identified in Shoreditch.
COMPLETION OF THE PURCHASE
Garrington viewed several properties, but only showed the client the best available flat at that time. Through comparable research and in-depth analysis Garrington believed the property was worth the asking price and an offer was put forward. Unfortunately, the vendor proceeded to back out of the agreement.
Following this disappointment, the selling agent informed Garrington that they had another property within the block for a slightly increased amount – again Garrington offered on and secured this apartment but unfortunately, the vendor once again pulled out shortly after agreeing the price.
It transpired that the selling agent had a purchaser back out of a different property within the development that was on the market.
Due to the competitive nature of the London property market, buyers were at the time, often left with very little negotiating power. However, Garrington offered a reduced sum lower than 3% the asking price for the property due to the immediate sale needed, and they were successful in their acquisition.
Despite two sellers backing out of deals, Garrington persisted in securing a property in the desired and sought after new residential development in the heart of Shoreditch E1.
Not only did Garrington secure the property for the client, they also managed to negotiate with and secure a tenant between exchange and completion of contracts, Therefore, the client had no void period and after completion had an instant yield of over 4.5%, which in the London property market at that time was a very acceptable figure and a good return on their investment.