Exiting Your Investment.
The exit strategy is perhaps the most important part of the process in a development project. Therefore LUXE like to establish the clients preference of exiting their investment at a very early stage in their business relationship, usually in the introductory meeting. The main options available at this point are:
Selling all units to cash in on capital growth.
Renting all units to generate a yield and continue capital growth.
Entering the development into a buy to let mortgage scheme generating lesser yield however continuing capital growth by way of the market place, as well as receiving part of investment back and clearing any outstanding loans.
Selling all units
This is an option used if the client would like to exit the investment completely, and either enjoy returns on their capital growth or move forward with another project. LUXE base their initial figures when creating an appraisal on pricing units to sell in the current market.
Renting all units
This is the option for the client who is looking to tie up their investment in order to generate a yield on equity. In the initial meetings when choosing a project, LUXE will advise the client on the climate and projections of the rental market for their chosen project and area.
BTL Mortgage/s
This option is a favourite among many investors as it allows the client to benefit from yield and capital growth whilst also returns part of the investment and clears any outstanding finance. We tailor all of our projects around the availability of an exit strategy through a 75% BTL Mortgage. Therefor the client has a finished development paying for itself by way of rental with 25% equity left in. It's ideal for that client who wants to build up a property portfolio using a limited amount of cash. This way the client does not have to wait to sell each unit to release funds, the BTL can be arranged as soon as the development is finished, in some cases prior to that.