Having read everything on the other pages, you may still have a few questions. We've tried to answer as many as possible here, so please click on your question to see the answer. If you have any other questions please feel free to ask us.
Click each stage to see the detail.
Why has My Property Partners been set up
Not a week goes by when uncertainty about the housing market is not in the news. This uncertainty has significantly increased the risk of the traditional buy-to-let market and property investors are increasingly looking to find lower risk ways to invest in property. The braver investors seek out opportunities abroad, such as Dubai, where the property boom is still underway, but investing aborad has its own share of risks.
Above all, the typical property investment model brings with it the risk of taking on a mortgage and often a need for large capital outlays with investors often encouraged to release equity from their own homes as the upfront capital requirement is so high. Even if you have sufficent capital to get started, the recent credit crunch and driven mortgage providers to tighten their lending criteria and many prospective investors can no longer get a buy-to-let mortgage.
As a result investors are left with the choice of investing in lower return lower cost areas and not where they really want. Alternatively they simply hold back from investing to minimise risk.
However, with interest rates coming down money left in a bank is earning even less interest which is driving the desire to find alternative investments that deliver better returns than a saving account but provides greater security than the traditional property investment models.
With this in mind My Property Partners has been set up to help like minded investors come together and own their property of choice
To see more details about how this investment model compares to other models click here
Is this for me?
There are a number of key drivers that attract prospective property investors. Do any of these sound familiar?
- You have money in a bank account earning limited interest
- You would like to invest in property in the UK or abroad as a sound long term investment
- You want to get on the property ladder or want to expand your portfolio
- You can’t afford to invest in exclusive properties – which often provide the most growth
- You don’t want to or can’t afford to take on a mortgage
- You don’t want to invest very large sums of money
- You don't want to invest in property funds where you don't know where you funds are being used
- You want the experience of being a property investor but without the usual risks
However, there are also just as many factors that stop people from investing. For example:
- Need a large deposit: The need for a large deposit – often to cover 10-20% of value of the property
- Unable to secure a mortgage: Your income may not be enough to secure a mortgage
- It’s harder to get a mortgage these days: The credit crunch has made it harder to get a mortgage
- Risk of taking out a mortgage is too high: What if you can’t rent the property
- Don’t know where to start: Don’t know where to invest or how to go about it
- Don’t have the time to manage the investment myself: It’ll take too long to search, buy, rent, manage and sell the property
- What if I can’t rent the property: You’ll still have to pay the mortgage
- What if interest rates go up: Your mortgage will go up but your rent may not go up so you are exposed
If these comments sound familiar then becoming a property partner could be your answer
Is my initial investment proptected?
- Your initial investment is protected from mortgage risk and My Property Partners will not not deduct or charge any fees that reduce your initial investment (unlike investment funds)
- As there is no mortgage the property can not be repossessed
- The value of the property may go up as well as down. If the value of the property decreases the value of the funds you have contributed also drops. However, as there is no mortgage there is not urgency to sell the property. The decision is entirely up to the partnership whether to ride out the difficult market conditions and wait for the market to turn
What responsibility do My Property Partners have?
- My Property Partners will be responsible for facilitating and administering the following:
- Proposing potential investment properties
- Finding and bring together prospective partners
- Structuring the investment to ensure all partners interests are protects
- Implementing decisions made by the partnership in respect of the management of the company
- My Property Partners or one of its directors will be the nominated member of the LLP whose responsibilities include ensuring the LLP’s legal/fiscal responsibilities are met
- My Property Partners will not have decision making power over the property or the funds raised in relation to the funds
- My Property Partners will implement decisions that the partners have agreed to either:
- As part of the initial sign-up to the LLP or
- Decided upon during the course of the investment cycle through the decision making process
What responsibilities do partners have?
- All major decisions and day-to-day control will be in the hands of the partners
- My Property Partners facilitates the decision making and implements the decisions made by the partnership
- My Property Partners will put forward proposals to all partners
- All partners are required to respond to each proposal and provide their input – no decision can be made without the input of every partner
What is a Limited Liability Partnership - LLP?
- It is an alternative corporate business vehicle that gives the benefits of limited liability but allows its members the flexibility of organising their internal structure as a traditional partnership. The LLP is a separate legal entity and, while the LLP itself will be liable for the full extent of its assets, the liability of the members will be limited. Source: Companies house
- To learn more about an LLP please visit one of the following sites:
Do we need to meet the other partners?
- You do not need to meet the other partners involved in this purchase
- All partners will be subject to the same partnership agreement – no exceptions will be made or special condition offered to any partner
- Details of each partner will be made available to all partners in the same LLP
What if we don’t like the way My Property Partners is administering the LLP
- At any point partners can propose to remove My Property Partners from the administration of the LLP
- My Property Partners will propose this change to all partners and subject to a majority vote My Property Partners will cease administering the LLP and resign as designated member of the LLP
- Any on-going administration charging will cease – subject to a termination payment equal to the fees due in that year
- My Property Partners will retain its share of the LLP that was assigned to it in respect of setting up the LLP and will then become another member of the LLP
Can I trust My Property Partners
- Purchasing property is probably a major decision for you and your family and can be quite daunting. Particulary when you are investing or pruchasing property with other people that you do not know
- There are many companies out there that take advantage of this situation and offer exciting schemes to invest in and ultimately you don't have visibility of how your funds are being used.
- My Property Partners has been set up to ensure that the investment partners are in control of their funds and have direct ownerships of all assets through a legal partnership agreement.
- My Property Partners plays the role of the administrator to help the partners deploy their funds and facilitate communicaitons between partners
- You should also be aware that The Financial Services Authority (FSA) is the industry watchdog that looks over all regulated investment activity and has guidelines to ensure that investors are not 'taken for a ride' by unregulated activity. Pooling funds and investing as a group is an activity that is overseen by the FSA and there are many compelx legal requirements that need to be adhered to
- My Property Partners works with expert lawyers in this field to ensure that not legal requirements or FSA guideleines are being overlooked. Prospective partners should be comforted that all issues related to this complex area of investing have been addressed. Please feel free to contact us if you have any further concerns.
|
