Quick turnaround of properties for RPT
Residential property trading is a closed-ended investment company enabling sophisticated investors to buy and sell UK residential properties quickly and at a profit over three to three and a half years.
The company is listed on the Malta stock exchange, which is recognised by HMRC, to make it eligible for inclusion in pensions such as self-invested personal pensions. RPT’s property adviser, Move with Us was founded in 1997 and has relationships with more than 3,500 estate agents. It will buy and sell between 300 and 400 properties a year for RPT.
Move with Us says RPT is able to produce returns whether the residential property market is up or down because properties sell in any market and not only as a result of dropping the asking price. The company says that in falling markets it will benefit from buying at bigger discounts and in rising markets, it will profit from increased turnover of sales.
The firm looks initially at the type, age, condition and location of a property, then at local markets, as sales trends will vary between locations. This information provides an idea of the potential risks in buying a particular property, how long it is likely to take to sell and at what price. Move with Us will sell the properties in an average of 100 to 120 days at 97 to 98 per cent of its price target.
This investment could be useful for investors who want residential property exposure in their Sipp, as direct investment is not allowed. It could also have appeal for investors who want an alternative to the buy-and hold strategy of building a buy-to-let portfolio. However, physical property can be illiquid and potential investors would need to bear in mind that shares in this are designed to be held until the company is wound up.