In the rush and excitement of newly listed properties, it’s easy to overlook the opportunities available on the Resale market. Many savvy investors have already discovered the advantages, with almost 17% of all trades on Property Partner accounted for by Resale, totalling £2,564,827 in the 11 months since launch, and growing rapidly.
If you haven’t already bought on the Resale Market, here are some compelling reasons to consider it when planning your next Property Partner investments.
As with any market, there are deals to be found. A quarter of all trades on the Resale market so far have been at a discount to market value, from which investors saved a total of £10,539. Another 21% have been bought at, or only a little above market value: between 0 and 2% premium.
With 108 properties across 33 investment locations to choose from, the Resale Market allows you to instantly diversify your portfolio. Choose between different locations and investment themes using the filter at the top of the marketplace, and spread your risk across a variety of investments.
By this we mean properties listed on the Resale Market at a false premium. Very often, Property Partner will purchase properties at a discount, which is only realised after the three-monthly Chartered Surveyor’s valuation. In the intervening period, many investors still choose to sell at a price below the predicted uplift.
For example, Sandars Maltings in Gainsborough and 1, 5, 6, 7 Tower Mint Apartments are yet to see uplift from their purchase discount. Gainsborough has traded at an average of 10% premium, and Tower Mint at 11% premium, when investors are expected to receive around 14% and 17% returns on these two investments respectively. This means that the properties are currently trading at a ‘discount’ to the expected 3 month valuation of 4% for Gainsborough, and 6% for Tower Mint Apartments. An attractive prospect.
Why not take a look at the opportunities currently available on the Resale Market?
Capital at risk. The value of your investment can go down as well as up. The Financial Services Compensation Scheme (FSCS) protects the cash held in your Property Partner account, however, the investments that you make through Property Partner are not protected by the FSCS in the event that you do not receive back the amount that you have invested. Past performance is not a reliable indicator of future performance. Forecasts, if stated, are not a reliable indicator of future performance. Interest and capital returned may be lower than expected. Gross rent, dividends, and capital growth may be lower than estimated. 5 yearly exit protection, exit on platform or exit in line with Opportunistic Fund strategy, subject to price and demand. Property Partner does not provide tax or investment advice and any general information is provided to help you make your own informed decisions. Customers are advised to obtain appropriate tax or investment advice where necessary. Financial promotion by London House Exchange Limited (No. 8820870); authorised and regulated by the Financial Conduct Authority (No. 613499). See Key Risks for further information.