Why Medway International…
If you are looking to actively invest, then surely you may be exploring various off-plan developments. It goes without saying that they represent phenomenal investment opportunities, however, there are developments where one should be very careful and go for the reputable developer; specifically, developments that offer guaranteed rental income.
We at Medway International are very specific about both the developments and developers we work with, to assure security for our clients during the build phase and when we move onto completion from a lending standpoint and tenant demand.
We do not involve ourselves in guaranteed or assured rents due some specific reasons but also the fact that our guarantee comes from natural supply and demand which must dictate rent levels.
As previously mentioned, there are red flags which arise when dealing with investments with guaranteed rent and these are some of the reasons:
A rental guarantee which is provided by developers is not legally binding! For this reason, they can cease payments which isn’t something we want to put our clients through as it is out of our hands!
The rental guarantee tends to be factored into the price usually and this just means the property is more expensive.
It clearly shows the lack of confidence in the area of development that the developers have to make their development look more attractive by doing this.
Lenders do not like these types of developments hence finding a mortgage on a development that offer guaranteed rent. They are known as investor led which we avoid dealings with at all costs.
Here at Medway International we sell and let hundreds of properties annually, hence we know what the achievable rent is and we not only are knowledgeable of the fact but also we pride ourselves on our accurate forecasts of rent levels which we always satisfy with organic supply and demand as oppose to the others who forecast on artificially inflated rents which isn’t sustainable over the long term.
If you would like to speak our consultants to gain more information please do not hesitate to contact us.