Select a Question below to view an Answer. If you have a question that is not listed below, please contact us
- I’m interested in finding out about deals you are offering, without obligation, what do I do next?
- What type of properties do you find?
- How does Paragon Investment Properties earn its fees and when do you get paid?
- Why do sellers give discounts or incentives and willingly lose some of their potential profits?
- Why couldn’t I receive these discounts directly myself?
- How do I know that the price has not been inflated originally and then re-offered at a supposedly ‘discounted’ price?
- How do I know that the rental values quoted are accurate?
- Are there any other incentives available?
- Can I get more of a discount if I buy more than one?
- What is the reservation procedure?
- Do I pay my reservation fee to you or direct to the developer?
- Can I change my mind and get a refund once I’ve paid a reservation fee?
- What if I don’t live near the property and am not able to visit it?
- What if interest rates go up?
- What if property prices come down?
- What about currency fluctuations?
- When is a good time to invest?
- Are you able to help me find a tenant and arrange for the property to be managed?
- Can I find my own tenants and/or manage the property myself?
- Should I let my property furnished or un-furnished?
- Can you help with furniture rental if I need?
- Who pays the utility bills and council tax?
- Who pays the ground rent, service charge and buildings insurance?
- Can you help with a Tenancy Agreement and my tenant’s contents insurance, as well as Landlords taxation and advice?
- What is the minimum tenancy period?
- Will there be difficulties trying to rent properties on new developments if I buy a large number, or if lots of people are buying for investment?
- How long does it usually take to find a tenant?
- Do you provide rent protection and legal expenses warranties?
- What insurance services do you provide?
- Do you provide Financial Advice?
- Do you provide a Conveyancing service?
- What is a rental yield?
- I’ve heard of the term ‘Leverage’, what does this mean?
- I have friends who may be interested as well, can I give them your details and is there a referral scheme operating?
- I have clients who may be interested in the deals you offer, can I benefit?
- Is your company registered?
- I’m interested in finding out about deals you are offering, without obligation, what do I do next?
Quite simply all you need to do is to register brief details with us. One of our consultants will then contact you to discuss your requirements further, answer any questions you may have and introduce you to our current opportunities. Your details are then entered onto our database and are not shared with any third parties. We do not charge registration fees or any ongoing membership fees.
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- What type of properties do you find?
Residential and commercial deals in the UK and Overseas. We can also source deals, specific to your requirements.
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- How does Paragon Investment Properties earn its fees and when do you get paid?
We are typically paid a fee from the seller in a similar way that you might pay an estate agent to sell your home. We only get paid once the deal has either exchanged or completed, therefore ensuring that we also have an interest in matters reaching a successful conclusion.
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- Why do sellers give discounts or incentives and willingly lose some of their potential profits?
Sellers may offer incentives for a number of reasons:
- It’s common for a developer to pre-sell plots before the general release of a site and offering incentivised deals to investors is an excellent way of achieving this.
- They may require funding and may need to achieve a number of sales quickly to release further funds. Alternatively, they may need to ‘bank’ some money to use for further development or future projects.
- A seller may also feel that they are able to offset any incentives they give to us, with our database of active investors, by saving on usual marketing costs.
- Developers have sales and income targets to meet. Whether they are quarterly, half or full year targets, developers sometimes offer discounts and incentives in order that they meet their targets.
- Once a site is nearing completion, a developer may be particularly keen to sell the final plots and finish the site. This means they are able to complete their project and use their resources elsewhere.
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- Why couldn’t I receive these discounts directly myself?
We’re not suggesting that you can’t. However, you need to consider that we are able to offer properties to a large number of investors which may therefore lead to a high volume of sales, meaning we benefit from the economies of scale. Also, we may be able to save the seller a lot of time, and cost, as we are advertising and selling their properties for them, as well as assisting with the workload that follows.
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- How do I know that the price has not been inflated originally and then re-offered at a supposedly ‘discounted’ price?
An independent valuation is available for your inspection on a number of developments we offer. Others are presented with comparable sales information and our due diligence procedures ensure we reject developments where comparable information cannot be provided. In either instance, we would also advise that you conduct your own research should you wish to satisfy yourself further and comparable evidence is usually widely available on-line.
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- How do I know that the rental values quoted are accurate?
Where an independent valuation is available, a rental figure is usually shown. In other cases, we work with more than one Letting Agent to assess the properties which provides us with a difference of opinion and more comparable evidence. This information is available for you inspect, along with the relevant contact details. As with checking property values, we also advise you to conduct your own research and, again, comparable information is usually widely available on line.
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- Are there any other incentives available?
Please contact us for full information on each deal we offer.
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- Can I get more of a discount if I buy more than one?
This will come down to the individual seller and we would recommend that you speak to one of our sales consultants as we may be able to negotiate further savings, depending on the situation.
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- What is the reservation procedure?
This will vary between deals although developers will typically charge an initial reservation fee, normally anywhere between £500 and £3,000, and they will usually insist on contracts being exchanged in between 21 and 45 days. Please speak to one of our sales consultants who will be able to clarify the exact procedure on each deal we are offering.
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- Do I pay my reservation fee to you or direct to the developer?
The reservation fee is payable direct to the seller and we will provide you with the relevant details of the procedure involved. This simplifies matters and can also help to save time. The reservation fee will usually come off the deposit amount you are asked to pay on exchange of contracts although one of our sales consultants will clarify the situation on each occasion.
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- Can I change my mind and get a refund once I’ve paid a reservation fee?
This varies between sellers although a full refund is rare. As an example some may offer a 50% refund whilst others may retain the whole fee. This will be clarified to you before you make any payments so that you know the procedure before committing.
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- What if I don’t live near the property and am not able to visit it?
It depends on the individual as to what you feel comfortable with. As long as the figures work, many investors will purchase without ever seeing the property for themselves, whilst others prefer to visit and become more personally involved. If you prefer, we can simply concentrate on finding you opportunities within your specified areas. However, those clients that consider other areas will benefit from having more opportunities to choose from and as a result will have more chance of a better performing investment. On some occasions, it can also be prudent to spread your portfolio so that you may not be as affected by any adverse regional variations. Inspection trips to overseas developments are commonly available and in some cases are heavily subsidised or even free.
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- What if interest rates go up?
Interest rates will fluctuate as part of the normal economic cycle and as an investor it’s always important not to over extend yourself. By doing this you will be better equipped to deal with any rises that will affect your mortgage amount.
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- What if property prices come down?
Housing markets can be affected by many different factors. Things such as political and economic issues as well as social trends and attitudes can all affect prices and nobody can accurately predict the future with any real degree of certainty, although most people you ask will have an opinion on it! An important consideration is that any property bought at a discounted price will have equity from day one. As an example, a property purchased at a genuine discount from its market value has an excellent buffer against any adverse price changes. Ideally though, property should be viewed as a mid to long term investment as, historically, any falls in value have been countered by more significant rises. Please visit the section entitled Why Property? for more information about the housing market and some past trends.
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- What about currency fluctuations?
A potential advantage with purchasing overseas property is that you may benefit enormously from currency fluctuations, although the reverse effect also needs to be considered. Researching historical trends is a good idea, although as with considering interest rates, it’s important not to over extend yourself.
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- When is a good time to invest?
Naturally, everybody would like to invest when values are at their lowest level so that they get the best deal possible. Being aware of when that is though is another matter entirely. Supply and demand, prices, interest rates, and other factors will always be changing and whilst it’s vital to be aware of as many factors as possible in order to make an informed decision, nobody can say with complete assurance what may happen in the future. In our opinion, opportunities should therefore be considered on their present merits and the right time to make any investment is when you are presented with a good deal that fits in with your current circumstances.
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- Are you able to help me find a tenant and arrange for the property to be managed?
Our tenant referencing department is one of the largest in the country and has over 5,000 UK letting agents registered, meaning we can recommend agents to you from most areas. In addition, on UK and overseas developments, contacts with local agents are established as part of our due diligence procedures and details will be provided to you.
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- Can I find my own tenants and/or manage the property myself?
Yes, after all it’s your property! However, we would advise you speak to a letting agent to get a full idea of the services they provide so that you can make an informed decision.
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- Should I let my property furnished or un-furnished?
In short we would advise going with whichever option will bring you the best return on your investment. However, property will rent either way so you may prefer to choose the unfurnished option if that is more convenient in your circumstances, although retaining rental income and minimising the chances of void periods should be factored into your thought process. Information on companies providing furniture packs are listed on our links page, although as previously mentioned a number of developments are offered with a furniture pack included.
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- Can you help with furniture rental if I need?
In some situations this may be possible, please contact us for guidance.
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- Who pays the utility bills and council tax?
In UK rented properties the tenant is normally responsible for the utility bills and council tax.
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- Who pays the ground rent, service charge and buildings insurance?
In the UK, a Landlord is duty bound to keep a property insured whilst it’s tenanted and is usually responsible for ground rent and service charges. If a service charge is applicable, buildings insurance is typically included in this.
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- Can you help with a Tenancy Agreement and my tenant’s contents insurance, as well as Landlords taxation and advice?
Please visit www.paragonadvance.com or contact 0844 375 9604 and one of our Insurance Sales Administrators will be pleased to assist you.
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- What is the minimum tenancy period?
In the UK, Tenancy Agreements are usually for a minimum of six months. Some of the overseas properties we offer are aimed at the holiday let market and so tenancy periods can be on a weekly basis.
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- Will there be difficulties trying to rent properties on new developments if I buy a large number, or if lots of people are buying for investment?
Sometimes yes, although developments are usually released in stages or sections, so that properties come onto the market in a staggered manner and this normally combats any potential problems. In any case, new developments usually attract lots of interest from purchasers and renters alike meaning that properties don’t usually ‘stick’ for any great length of time. It’s advisable to consider the circumstances around each development and to speak to local Letting Agents for advice.
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- How long does it usually take to find a tenant?
There is no standard answer to this question as there are many variables involved. However, as an investor it’s important to consider this question and factors such as price, demographics, desirability and competition are usually the main issues. As with selling a property, setting a realistic price will attract good levels of interest. This also applies for overseas properties aimed at the holiday-let market.
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- Do you provide rent protection and legal expenses warranties?
We understand how important it is that you feel confident your rented property is covered for any unexpected events including non-payment of rent, which is why we have developed our specialist warranty products. These offer additional peace of mind for a very reasonable price.
For information on our Smart Deposit Solution, Rent Protection and Legal Expenses Warranty and our Section 21 Legal Expenses Warranty, please
click here.
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- What insurance services do you provide?
We offer specialist insurance to protect landlords and tenants, including buildings and contents insurance, professional indemnity insurance and much more. For full information, please visit www.paragonadvance.com or contact 0844 375 9604 and one of our Insurance Sales Administrators will be pleased to assist you.
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- Do you provide Financial Advice?
Advance FS is our in-house mortgage and finance division; offering landlords whole of market advice across the buy to let and residential sectors. Our qualified consultants are industry specialists and offer ongoing mortgage, remortgage, life assurance and secured loan advice.
We don’t charge our clients any broker fees and pride ourselves on providing the best quality advice and exceeding the ‘treating customers fairly’ principles.
To speak to a member of our mortgage department please call us on 0844 375 9612, or email customerservice@advancefs.com. Our website address is www.advancefs.com. Further details can be found on our links page.
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- Do you provide a Conveyancing service?
We work closely with a firm of UK solicitors called MacDonald Oates as experience has shown us they have a high level of customer service and are able to complete proceedings effectively and within applicable timescales. Please click here for a personal quotation. Further information will be found on our links page. Naturally you are free to use your own solicitor or conveyancer should you wish.
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- What is a rental yield?
A rental yield is the amount of your investment that you receive back each year in rent, worked out in percentage terms. Assuming that you bought a property for £200,000 and rented it at £1,000 per calendar month, you would achieve a return of £12,000 in rent per year. This would give you a rental yield of 6% (£12,000 being 6% of £200,000).
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- I’ve heard of the term ‘Leverage’, what does this mean?
Leverage essentially means that for a deposit amount you can secure an asset that will grow relative to its actual value, rather than the value of your deposit. For example, let’s assume that you exchange contracts with a 15% deposit (£30,000) on a property worth £200,000 that was due to complete a year later. During that year prices increased by 10% and you then sold the property for £220,000. Your initial investment of £30,000 would have bought you a return of £20,000, i.e. you benefited from a 10% growth of £200,000 rather than a 10% growth of £30,000. Please note that for the purposes of this basic example, we have not taken into account any fees or charges of any kind.
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- I have friends who may be interested as well, can I give them your details and is there a referral scheme operating?
Yes, we have a scheme whereby you can benefit from referring your friends or colleagues to us. Please contact us for details.
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- I have clients who may be interested in the deals you offer, can I benefit?
Yes, we work with a number of selected like-minded partners. Please contact us to discuss further.
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- Is your company registered?
Paragon Advance Limited (Registered company number 3679691) is authorised and registered with the Financial Services Authority and our firm reference number is 304595. We feel that it’s important to be open and transparent in our dealings and to make our clients aware that Paragon Investment Properties is not a regulated or licensed investment or financial advisor. This means that we cannot recommend investments to you and, as a result, the decision of whether to purchase or not comes down to you and you alone. We can show you the properties we are offering and highlight the incentives we’ve been able to negotiate, as well as giving you an idea of the predicted rental income, along with other relevant details. However, we will not advise you to invest in a particular deal as that is your decision.
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