Buying property is, as we here all the time “a total no brainer” It is more popular by far than investing in stocks and shares, ISA’s, pensions etc as people feel they know where they stand with bricks and mortar.
We have had this discussion hundreds of times both on the phone and via social media and there is a lot to be said for both as well as spreading your risk and your potential for growth. However, this article is not about starting an argument it is about the more popular investment option for crew which is by far and away property.
So, if this is so popular why do crew struggle so much to do it? The answer is two fold;
Lots of you reading this will already have property and those of you who have had property for a while will probably be saying “What’s the problem? I got my mortgage easily through the high street bank” Well, so did lots of us a few years ago but things have changed. The biggest problem we see crew struggling with when applying for a mortgage is a thing called source of funds which is basically where your salary comes from (Cayman Islands, Bermuda, Switzerland etc) If the bank can’t identify the source then they don’t like to lend to you as they cannot determine how trustworthy, reliable and most importantly legal your source of income is. The next is currency. Nobody simply gets paid in £’s and so again the banks, or most of them find it hard to deal with.
Even if you do everything else right and your background is completely clean you can very often find that your bank won’t lend to you, especially if you get paid offshore. After all, why would they lend to you if the only reason you use them is to transfer enough to pay your bills every month? They want reliable customers who get paid in to their accounts with the lending bank every month. Yes, they will of course make money out of you but they see the risk as too great.
Those are the things that have changed recently. Add to that the fact that you need to be able to prove income and MUST be doing your annual tax returns and things are just a little bit too hard sometimes.
But, there is of course a way to solve all these problems. Once you know the position you need to be in, the paperwork you need and the process to follow then generally speaking, as long as you are not trying to borrow a lot more than you can afford then a mortgage, with our help is fairly straight forward.
So, now you have a mortgage approved and you have enough money to buy a property what happens next? You run out of time off!
This is a classic problem for younger crew and, unless you are on rotation or just have lots of time off which doesn’t generally happen until later on then it turns in to a complicated issue. If you want to buy a house, have the money ready but don’t have the time to find the right place then what do you do?
We have been doing this for crew for a couple of years now purely because we know it has been an issue since when I worked on yachts and not much has changed. If you have the money to buy and the only reason you are not buying is time then why not let a professional do it for you? After all, your money is not earning anything in the bank and as soon as you have a place with a tenant in it then they are paying your mortgage.
So, our property specialist has over 20 years experience with rental properties and this is how the service works for our crew;
1. You talk to us about the type of property you are looking for.
2. Tell us about your mortgage and therefore your budget. Remember, you don’t necessarily have to spend all you can borrow. There are properties which offer much better returns than others. So, maybe that apartment in London or the house in the town you grew up in isn’t the best use of your money.
3. Based on what you tell us our property specialist will run through some options and locations and explain to you why they have come up with these ideas alongside market trends, house prices, rental figures, popularity and the rental market for each area. You will be presented with the properties that offer the best return on investment based on your budget.
4. Once you have agreed on a plan our specialist will put together a shortlist of properties based on what you discussed. You will be presented with an investment proposal for each property with projected returns annually so you can see how quickly the house could be paid off.
5. Our specialist will then view the properties on your behalf and report back to you. After discussion they will negotiate and make offers on your preferred property.
6. Once a sale is agreed you have to complete the paperwork and complete the purchase. This can generally be done remotely, especially if you have someone who has power of attorney over your affairs (we can help with this too)
7. Once the sale is complete our property specialist will then market your property and ensure you have tenants in quickly, they will then manage the property for you and pay the rent into your account each month.
Sound simple? It is supposed to. The whole idea here is to make this as simple and stress free for you as possible whilst ensuring you are getting a property that gives you the best return on investment possible so the mortgage is paid off ASAP. All whist you are away working!
Being ex crew ourselves we know only too well that you often need help with some or all of the areas above. It happened to us and so we know that having someone you trust to do this sort of thing for you not only saves time but in most cases ensures you buy something that is a much better option for you as an investment. After all, remember that it is unlikely you will ever live in this property so you must buy with your head, NOT your heart.
If you need some help or would just like to talk to us about the process of getting a mortgage or using us t help you find a property please fill in the form below and we will get back to you and arrange a time to talk.