How will The Collaborative London increase the value of my investment?
We find a raw uncut diamond of a property and turn this into a polished cut diamond which is very valuable. We do this by finding a PCL property below market value using our contacts which have cultivated over many years of experience.
We examine the opportunity with our team of experts, carefully looking over every aspect of the project.
Once we are happy, we partner and leverage using bank finance to obtain via our trusted sources. This helps us to maximise the returns to our partners.
Moreover, we add value to the property via our interior design, project management and refurbishment expertise. We understand the market demands, which helps us achieve maximum values.
How does The Collaborative London make my investment safe and secure?
At The Collaborative London, we are focused on Prime Central London (PCL) properties. We want to give our partners a low-risk, high-return strategy that is asset-backed.
At The Collaborative London, we put our partners first. We make sure that you have direct ownership over the property. This means that any money invested is also secured against the property purchased. Whether this is via a company or an individual.
We also offer a guarantee that means that if the project makes any losses, these will be shared equally.
How long will a typical investment in Central London property take?
We typically try to exit deals in 12 months. However, with property timing is key, we are your partners, and we are here to ensure that you exit at the best time so that we maximise our returns.
What is my return going to be?
We target a return on money invested of 20% per annum.
What areas are The Collaborative London investing in?
We are focused on investing in Prime central London, areas such as Mayfair, Knightsbridge, Kensington and Chelsea.
How do I know what you are presenting is below market value?
We will not enter a deal that is not below market value. The reason for this is apparent; we want to add value at every step of the way.
We know that a property is below market value by looking at its comparables, and we carefully examine similar properties looking at how much they would be worth once developed. We present our evidence to our partners so that they also have the same clarity when investing.
What is my return net of taxes?
If we use a simple example and say that investment is £100,000 and we have made 20% returns, you have made £20,000, and if we take 19% of this amount, it will be a tax of £3800.
This leaves us with a net profit of £16,200. Which means your net return on your money is 16.2%.
Will The Collaborative London be transparent about the project's costs of refurbishment?
At the outset, we will provide you with a specification report showing you the type and quality of finishes that will be included in the interior design of the property.
We will also provide a fixed cost for the refurbishment, including interior design and project management. This allows our partner to have full transparency on cost and specification of the project.
How do I know that exit price will be achieved?
The Collaborative London are very cautious about the exit values. We use values today to estimate the exit price in the future. We do not use the future values to hope that there may be increases in property prices.
When we analyse the exit value we are looking for what similar properties in an excellent condition will sell for here we use our trusted valuers who give us there expertise on the values that can achieved.
What are the taxes that I will have to pay?
Specialists advice is taken on a case by case basis. However, typically we would use a UK registered company to make a purchase of a property. The main two taxes that will affect our transaction are:
Stamp Duty Land Tax this is a tax which is paid on the purchase of the property. We will always indicate the exact amount of SDLT that will need to be paid and we will always have this incorporated into our financial appraisal of any opportunity we present.
Corporations Tax as a company which holds property and develops them we are able to treat property as a stock this means we will not pay Capital gains tax instead we will only pay Corporations tax on the NET profit after all expenses have been this is currently 19%.
If our partner is a UK resident he will then receive his profits as a dividend and he will have pay any normal income taxes which he will need to account for.
On the other if they are not a UK resident broadly speaking about partners in the Middle East then this dividend can be received without having to pay any further taxes.