We recently settled a 6-property portfolio purchase we were negotiating on behalf of one our investor clients.
We first saw the properties back in January last year and to say the process has been lengthy and frustrating is a massive understatement! In our near 30 years of working in residential property investment this has been probably the most difficult and protracted deal we have ever worked on.
Deal Background
The properties are traditional tenement flats in very central locations within Edinburgh. All have seen increasing demand from tenants and are well placed to benefit from capital appreciation.
Our client is a sophisticated investor who is diversifying his asset base and also wanted to benefit from the ADS relief that buying 6 or more dwellings as a single transaction offers. The portfolio was sourced “off market” by utilising our extensive network and the intimate market knowledge we have built up over many years.
Deal Challenges
Over the period we had to deal with significant changes to taxation, legislation, along with various other complex administrative and logistical problems. The result was there were many times it looked as if the deal might fall through.
But by having a professional, coordinated and engaged team of people working on behalf of the client meant we were able to sort through the problems and come up with constructive solutions which kept things on track. Throughout we always worked with our clients’ best interests in mind and sought at all times to mitigate risk and ensure the investment was still the right thing for them.
The Result
We were also able to negotiate on the price and secured a discount on value. In addition, there is the opportunity to refurbish, add capital value and significantly increase the rental income hence maximising returns for our client while at the same time providing tenants with a quality home.
Future Opportunities
With the all the negative press, changes to legislation, tax and interest rate rises etc the environment for investors entering the PRS and existing landlords is certainly “challenging”. Hence the risks associated with investing and for landlords have increased significantly.
But at the same time the rental market right now couldn’t be stronger with historic levels of demand from tenants for places to live and constrained supply resulting in extremely low void times.
The result is there is still real opportunity for investors who do their due diligence and seek professional guidance to mitigate risk. If anyone would like to discuss our investment services and the current state of the market please do get in touch with us here.
Our Service
At Glenham we are focused on risk mitigation and providing our clients with support in the face of these ongoing challenges. We provide a comprehensive service that provides protection and helps them navigate the increasingly complex legislation.
