What if there is a property crash?
It is generally agreed that property prices within the whole of the UK are not likely to continue to rise at the levels experienced during the last five years. Some areas within the UK over the last twelve months (as at April 2008) have experienced growth of over 30% (Aberdeen City, source Nationwide) and it is therefore unrealistic to assume that this will continue. However, over the past 35 years prices have risen consistently, typically by between 8 to 10% each year. Only twice has there been a dip in house prices, and on each occasion for only a short period before returning to even higher growth. History has shown that any levelling off in values is generally less effective the further north that you are in the country. Even during a lean period, whilst some areas may be particularly hard hit, there are always others that still experience significant growth due to local factors. It is part of our business to identify these 'property hot spots'.

When you consider that the government has announced that the current huge shortage of housing throughout the country will not be resolved for at least 10 years, it is clear that the demand for property will continue, making property a safe and profitable medium to long term investment opportunity.

Furthermore, whenever there is a slow-down in the market, opportunities arise for even greater discounts with developers and therefore more potential profit for the property investors. When you invest in property in a prime location, and have between 15%-25% equity in the property over and above any cash that you invested, you have an above average surplus against any temporary market fluctuations.

People have been making fortunes from property for years, without the advantage of buying with the discounts that we negotiate for our Investor Members. There will always be money to be made from property as long as the property is purchased at the right price. Property Networks UK will endeavour to help you achieve prosperity whatever the market conditions.

After the Initial Administration and Reservation fees on the first property purchase, what other fees do I have to pay?
An arrangement fee of between 1.5% and 3.0% + VAT (varies between developments both in UK and overseas) is payable to Property Networks UK on all purchases. Other fees common to any property purchase, such as Stamp Duty, Solicitors fees and a Mortgage Broker fee are normally paid on completion. We usually suggest the use of our recommended mortgage brokers and solicitor firms. This will ensure the purchase transaction is completed in keeping with the vendors deadlines. There is no additional membership fee payment after your first property purchase.

What happens if I change my mind?
If at any time within the first 7 days after making a reservation, you decide for whatever reason that the investment is not for you, then all monies paid (with the exception of the reservation fee to the developer) will be refunded. Once you have exchanged contracts (concluded missives in Scotland), you are then committed to buying the property. However should your circumstances change, or if you simply choose to do so, the type of contract commonly used will normally allow the contract to be assigned to another buyer, hopefully for a cash profit to you.

Do I have to purchase any further properties?
No. An Investor Member can purchase as few or as many properties as he or she wishes. We keep you informed about new opportunities as they arise, via your preferred method of communication. You are then able to take advantage of those that meet your personal criteria, as and when you choose.

How do people get to hear about Property Networks UK?
Mainly by personal recommendation. The majority of our Investor Members have joined as a direct result of the recommendation of a friend or colleague, most of whom have bought through us on more than one occasion.

When I decide to join, how long do I have to wait to purchase my first property?
There is no waiting time. Most Investor Members join when they have decided that they wish to receive first notification of property opportunities ahead of our free general members. Once you are an Investor Member you may proceed immediately with a property purchase, and pay your registration fee of £295 inc VAT. Please note that there is no commitment until you are ready to buy the property of your choice.

What type of properties do you offer your Investor Members?
Virtually all are new developments. In all cases the reputation of the developer is very important, as is the location. The majority of properties are one and two bed apartments in cities and towns with good rental demand, but we also consider larger houses and apartments where the rental demand or the potential for capital growth makes for an attractive investment.

What is the procedure for buying property through Property Networks UK?
We will inform you from time to time of property investment opportunities, either through our web site, by email or by telephone. If you decide to take advantage of an offer, the first thing that you need to do is to contact our office by telephone, fax or e-mail, to confirm availability, and to reserve the property you have chosen.

The Registration Form and Reservation Form can be downloaded from our web site, completed and forwarded to us with your Administration fee and Reservation fee (payable to Property Networks UK). Reservations cannot be confirmed until the fee is received, and the property is allocated on the basis of first come, first served.

Once we receive your completed forms and payments, we will confirm your reservation and forward your details and Reservation Fee to the developer. Your details are also forwarded to our Solicitors and our own Mortgage Broker, who will contact you regarding the transaction.
The arrangement fee of between 1.5% and 3.0% plus VAT should be paid to Property Networks UK within 28 days of reservation. Exchange of contracts (concluded missives in Scotland) is normally required to take place within 14 days for Scottish purchases and 28 days for English purchases. This is normally calculated from the date that your solicitor receives the contract from the vendors solicitors. At this time the deposit must be paid, and you will exchange contracts(conclude missives).

Where the property is completed at the time of reservation, there is normally no deposit to be paid, and instead exchange of contracts(concluded missives in Scotland) and completion take place on the same day. In this case the mortgage funding arrangements must be in place beforehand.

Do I need to use your Mortgage Broker or packager?
No, you are free to use any broker you choose, however in most cases we strongly recommend that you use our own broker. We do this for two key reasons - speed and control of process. Many of the properties we offer are on developments where an incentive offer has been made conditional on meeting a specific closing date. In the interests of every Investor member involved in purchases, we need to have full knowledge of the status of that transaction and have as much control as possible to ensure 'on time' completion. This is in your interest as well as ours.

Another factor is that in order to reduce your outlay to a minimum, it is necessary to structure the purchase to meet very precise conditions imposed by lenders. We have our own fully authorised Mortgage Brokers with a proven track record within the buy to let mortgage market. In particular expertise with buy to let funding arrangements to ensure minimal cash flow requirements for our members.

In all cases our brokers are long-established specialists, dealing with major lenders, and are fully regulated by the FSA.

Do I need to use your Solicitor?
We cannot insist on this, but would strongly encourage you to do so, for exactly the same reasons as above - speed, control and expertise. We only use specialist firms of a sufficient size to handle a large number of simultaneous completions, and with particular experience in the demands of the rental investment market.

Although we nominate the solicitor he/she is ultimately instructed by you, and acts on your behalf, not ours.

What if you go out of business? How would that affect me?
In the unlikely event of that happening, the key point to remember is that Property Networks UK acts as an intermediary. We match our Investor Members with genuine property investment opportunities, with well-known reputable house builders and lenders.
After processing the reservation, your financial dealings are conducted with the third party broker and solicitor concerned. Both will act for you and in your interests. After each transaction, you will own each property. You will then be free to sell or rent the property as you wish. We will however always be pleased to be of service should you require our assistance.

Do you provide investment advice?
Property Networks UK and our staff are not permitted by law to provide regulated investment advice. The service therefore provided via Property Networks UK will focus on informing you of current property opportunities and various types of generic financing that we believe will compliment your property portfolio strategy.

Before you invest in the purchase of a property, you are encouraged to obtain professional advice from an appropriate source.

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Call 0845 057 3586 for reservations and property related enquires.