Global Reach Finances knowledge and contact base within the investment property industry allows us the opportunity to provide the complete package, including the investment property.

Through our network of property finders we are able to provide not only the finance but the property to be purchased. There are two main categories of properties we can offer new build properties and high yield properties.

Global Reach Finance is often able to offer New Build properties to our clients with a substantial discount. Investors who buy a new build property are usually concentrating on the equity gain involved. Most new build properties would command a higher price than older buildings of a similar nature in the same area. When a large discount is offered such as 15%-20% then that discount is usually of a higher value than older properties due to the prices involved. For example a £300k property with a 20% discount is effectively offering £60k in instant equity. Global Reach Finance is able to use this discount to fund the purchase.

In many instances these properties are ones the developer wants to sell away from the open market so as not to devalue the rest of the stock. Investors who buy them usually look to hold on to them for 2-3 years until the local market has absorbed the whole development. The property could then be sold for its full market value releasing the discounted property to the investor. During the holding period the investor would normally look to rent the property out via a letting's agent in order to cover the costs of the mortgage. In some cases it may be necessary to subsidise these properties during this period if rental voids become an issue or if the income from letting the property is insufficient.

Some investors almost look at it as a “savings policy” whereby they pay a certain amount per month to subsidise the property and in 3 years time cash that “savings policy” in by selling the property.

Investors who are looking to build a long term portfolio are normally interested in the yield being provided by the properties they purchase. In order to maximize the yield it is important to consider the area in which the property is purchased. With the meteoric rise in property prices over the last 5 years it is increasingly difficult to find properties with high yields as rental prices have not increased at the same rate. One of the areas Global Reach Finance has identified has having good yields, is the North East of England. While property prices have risen here at a similar rate to everywhere else in the country, because the prices started lower the rental income generated by these properties provides a higher yield than in many other areas.

Global Reach Finance is able to offer high yield properties with a discount. This makes it possible to pick up an income generating property with little to no cash input.