Investors
Investors can now enjoy the same benefits of high rental yields and potential capital growth without the sole responsibility and higher personal financial commitment of outright property ownership.
Shared ownership in overseas property market offers:
- Freedom from full management responsibilities
- Regular cash flow through rental income
- More flexible Investment in one or more properties
- Broader portfolio diversification with an exciting additional income stream
- Teaming up with like minded fellow Investors, adding to skills and knowledge
- An option to take free holidays in your property/properties.
Shared ownership presents a great property investment opportunity in easily accessible areas with excellent facilities where there is a vibrant and constant short and long-term rental market for properties near beaches, marinas, golf courses.
Share the risks and rewards of investing in the property market with like minded Investment partners with the same or divergent mix of skills/knowledge to you, and become a force to be reckoned with.
- There is safety in numbers. You can build and expand a property portfolio with others, usually two or three more.
- Share the costs. Investing with others means splitting the costs to make co-investing in property far more affordable and attainable.
- Feel the fear. The fear of the sole financial and time commitment, the "what if’s" of property investing, the time it takes to research the market. Bond with other like minded Investors to seek/give advice, lean on, learn from and share the responsibilities with.
- Some people like to invest in property because it is a tangible asset; you can see it and use it and enjoy it. And of course it has the same financial rewards!
- Share the risk, split the rewards. Of course the obvious advantage of investing with others is that the costs are split, and the thing that drives you on is your share of the rewards. Teaming up with others can mean you'll have more funds to play with and become a formidable investment partnership.
- Build a portfolio of various properties at different locations in time.
Shared ownership of property with others can work as long as the purchase is documented and regulated by a shared ownership agreement.
Our pre sale shared ownership agreement gives share owners complete peace of mind in knowing that each of their own interests are legally protected and secure. This legal document records the intentions and purposes of the co-owners and the details of the property to be purchased, procedures including occupancy schedules, responsibilities to each co-owner in maintaining occupancy standards.
The agreement includes procedures should a co-owner wish to sell their share, providing fellow Investors have first refusal (called a pre-emption right) to purchase the share before putting it on the open market. The property value is assessed towards the end of each year at the annual meeting so if a co-owner wishes to sell their share during the following year the price is already agreed. It can include a pre-sale condition that at a future date (between 5 and 10 years) the property will be offered for sale to realize each co-owners investment. This of course can subsequently be changed providing all parties are in agreement during this time.
A local Management Company will be appointed to maintain the property and the shared owners will agree whether to continue with the appointed Company each following year at the annual meeting. The duties of the Management Company may include ensuring that the property is insured, kept in good repair and well-maintained, making suitable arrangements for the property to be let, cleaning, change-overs etc., and once the property is let ensuring that tenants are adhering to the terms agreed.
An occupancy schedule within the pre–sale agreement ensures that over a 4 year cycle each share owner enjoys all the seasons equally thereby maximizing rental yields equally. Co-owners can and do interchange their entitlement by prior agreement ie swapping a week or two in a year to satisfy their particular needs/plans. An advantage of this is that the property does not stand empty for weeks or months at a time.
The whole purchasing procedure is handled by fully indemnified British and International lawyers who ensure all procedures and payments are legal and secure. You should also seek advise from an IFA and/or Accountant with knowledge of overseas property purchase and tax positions, together with your own Solicitor who can be consulted during the buying process. A number of areas need to be considered, not least currency & transfer of funds, (purchase and subsequent rental is normally in Euros); personal tax position, whether a Limited Company (UK or Portugese) is the most efficient vehicle, levels of investment, personal needs and requirements.
