How will The Collaborative London increase the value of my investment?
We find a raw uncut diamond of property and turn this into a polished cut diamond, which is very valuable. We do this by finding a Prime Central London (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 thoroughly checked, we partner and leverage using bank finance to obtain our trusted sources. This helps us to maximise the returns for 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 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 they have direct ownership of 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 properties take?
We typically try to exit deals in twelve months. However, with property timing is key. As our investing partners, we are here to ensure that you exit at the earliest time, to maximise returns.
What is my return going to be?
Our target return on money invested is 20% annually.
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 every step of the way.
We carefully assess a property and determine it is below market value by looking at its comparables. Furthermore, we critically analyse similar properties, looking at how much they would be worth once developed. Our findings are discussed with our partners for more 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. If we take 19% of this amount, it will be a tax of £3800.
This leaves us with a net profit of £16,200. This 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 included in the property's interior design.
The Collaborative London will also provide fixed costs for the refurbishment, including interior design and project management. Partners will have complete transparency on price and specification of the project.
How do I know that exit price will be achieved?
The Collaborative London diligently calculate exit values. Values are used to estimate exit prices in the future. (Future values are not used to hope for increases in property prices).
Trusted valuers are hired to give their expertise on the values that The Collaborative London can achieve. Exit values are analysed (how much similar properties, in excellent conditions, will sell for).
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 purchase a property. The central two taxes that will affect our transactions are:
Stamp Duty Land Tax (SDLT) is a tax paid on the purchase of a property. We will always indicate the exact amount of SDLT to pay, and we will always have this incorporated into our financial appraisal of any opportunity we present.
Corporations Tax is for companies, which hold property and develop them. The Collaborative London can treat properties as stock. It is not required to pay Capital Gains Tax. However, only Corporations Tax (on NET Profit, after all, expenses) must be paid. This is currently at 19%.
UK residents that partner with The Collaborative London will receive profits as a dividend and will need to pay any regular income taxes accounted for.
Non- UK residents (mainly partners living in the Middle East) receive dividends without having to pay further taxes.