Delph Property Group is concentrating on the heart of London with the first property investment scheme.
First property is an enterprise investment scheme aimed at experienced investors who are looking for either rental income or capital growth over the medium to long term and who have had experience of the rental sector before. The scheme is also being marketed at expatriates who are unable to manage a rented property because they are out of the country.
Delph owns over 100 properties spread over London available for this scheme, including ones in Wimbledon, Kilburn, Maida Vale, Battersea and Clapham. Investors will be able to purchase a property from Delph, which will then lease it back from the investor, who will receive the rental income. Delph will then furnish and rent the property out, as well as deal with issues such as finding tenants and maintenance.
The scheme can run for a maximum of 12 years, at the end of which the investor will get the property back. They can then decide to either let it out again or to sell it.
Although property tends to be a stable investment, investors should be cautious about this scheme. The success of each property will depend on its location and how it is managed to ensure a good level of rent over the long term. Investors will need to look carefully at what is on offer.
According to the Nationwide index 2000, the average property price in Greater London has gone up from £94,564 in 1988 to £144,205 in 2000, an increase of just over 50 per cent in twelve years.