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Property investment case studies.

We endeavour to ensure that our client’s receive a service of the highest quality. Below are a selected array of genuine case studies that we have received to date:

All our clients that have provided information are happy to be contacted to discuss their experience.

Claude Lester, Investor

Claude LesterHaving reached my mid 40s I was aware that although I have tried to plan for my financial future since my 20s, circumstances meant that I was not going to find my retirement (eventually) as well financed as I had hoped.

In general, to the dismay of many a financial advisor I have had pretty low risk investments but more importantly all my investments have been chosen for their ethical credentials. Alongside my investments I had a few pockets of cash which were performing appallingly and were basically losing value day by day.

When a two year fixed term investment came to maturity (for which commitment I was getting 2.95%), I decided to see what else was around. Also I was not happy with my investment in NS&I premium bonds, which while it guaranteed the capital investment, this was devaluing and it was only giving me an occasional £25 cheque. These cash pots totalled to about £140,000.

That gave me a lump sum to spend and I wanted to make it work much harder. I realised that might mean going a bit higher in the risk stakes than previously. A couple of friends of mine had invested in overseas property in schemes designed to generate income without having to do any of the management/rental. Mostly this means hotel resort schemes. I was seriously considering investing in the same scheme, when I mentioned it to colleague. She then introduced me to Chris Mansfield, and Davenport Property Investment. I was quite sceptical as I already have an IFA who I trust, but went along to one of their seminars to hear him & his team talk.

What I found was very interesting, it turned out that the investment I was considering was on the brink of big trouble. I hadn’t realised that buying overseas was in no way regulated by the UK FSA (as was). It does explain why so many people have got burnt buying in abroad. They explained that personal experience and knowledge of previous clients (Chris has over 20 years of working as an IFA, and works very closely with the FSA) had led to them setting up the company to try to enable people like me to make safe choices while making our money go further.

I talked to my IFA and he explained that due to its risk/unregulated situation he can’t recommend such investments, but I put him in touch with Chris and we subsequently have had conversations where, while my IFA can’t recommend the investment, he is happy for me go ahead.

My first investment was off plan (always the way to get best prices, but risky if the investor doesn’t ever build). I had seen the talk by The Resort Group, and knew that the Davenport team had done all the due diligence. They could reassure me that the company had no debts or liabilities and were cash rich and therefore able to build the projects they are involved in without needing further cash injections. (This is not uncommon, a company will start with a large debt and leverage it against future contributions from investors). We arranged for myself and a friend to go out to Cape Verde, where I was planning to invest, to see the current projects and the location. One of the reasons that I chose this investment for my cash was that it would give me some personal usage of the property in this luxurious resort hotel. So I wanted to know it was somewhere I would want to go. The location, lack of jet lag, ease of journey (Gatwick –Sal in 6 hours) convinced me that I would be happy to do so.

I saw copies of all the due diligence documents, and also met the CEO of The Resort Group, Charlie King, who I gave a very thorough grilling with queries that had arisen from my trip.
So I went ahead with my first investment, but only after making Chris go through all the details with me for a third time, so I was completely clear what I was getting into. He was extremely accommodating and insisted that it was really important part of their ethos that the client knows exactly what they were buying.

I also have a property in London which has seen a huge capital growth over the past 20 years. I am planning to sell this soon, but due to some major works due to commence, this is not feasible for at least 18 months. I was keen to release some of the capital without in any way risking negative equity or the ownership of the property. I discussed with my IFA the prospect of remortgaging to release about £100,000 in cash, and he was happy to put me forward to the mortgage broker fully knowing my plans.

Those plans are now progressing. I had seen a variety of overseas investments ideas at the Davenport Property Investment seminars. The one that appealed to me was the idea of buying for cash brick built quality family homes in Detroit. These are sourced for you, refurbished and tenanted and fully managed. A 4000sq foot plot, 3 bedrooms, garage, front & back yards will cost between £25-30,000. You can even see a video fly through of the property as well as information on the area and neighbourhood. The necessary steps (US bank account, ITIN number etc) can also be sorted out for you by the company. And at the end of this you can net a 12% or more yield. Given that my mortgage would cost me 3.74% that is a healthy margin. For spending a total of £100,000, the company guarantee the 12% yield, putting the money in escrow rather than paper promises. For that amount of money I would own 4 properties. This is due to the 48% loss of value in properties in the sub-prime fiasco, and the fact that no-one can get a mortgage in the US so the rental market is huge.
My mortgage has just been approved and my first two properties have been reserved.
After this I will consider what to do with my pension about £100,000 – with annuities on an all time low and the capital value decreasing, I need to consider a SIPP into some commercial property to make that work harder too!

Awaiting report, Awaiting

I recently purchased a property from Davenport Wealth.

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