‘Multi-let HMOs represent best value in buy-to-let market’ - Fusion Property Investment Services
Added: (Thu Mar 08 2007)
Pressbox (Press Release) -
Despite concerns being voiced by property professionals in the light of new regulations governing HMOs (Homes of Multiple Occupancy), Fusion Investment Property Services Ltd maintains that the best returns are to be found in multi-let properties.
Landlords, wary of potential fines of £20,000 without the right to appeal over HMO licensing contraventions, need not be overly concerned according to Fusion, which provides an inclusive service to its clients.
Fusion investors typically reap 12% yields, based on rental income over property value, although Fusion Managing Director, Gregoire Godin is critical of the industry standard calculation, which assume 100% occupancy.
“We base all our projections on an 80% occupancy level, delivering a minimum 8% return, which we believe is more practical for HMOs,” explained Godin. “Our investment model breaks even on 60% occupancy and the returns when properties achieve 90% and 100% occupancies are quite staggering.”
Because of the level of effort required to manage multi-let HMO properties, where individual tenants share kitchens and bathrooms, Fusion provides a comprehensive, one-stop solution for buy-to-let landlords, which begins with identifying potential property investments. Clients need never speak to an estate agent, mortgage company, builder, council official or tenant.
With a knack for identifying up coming “hot spots”, Fusion sources properties that are typically located in areas below market value, creating a greater potential for capital growth.
Profits are enhanced by the company’s ability to select the right type of property, then reorganising the internal space and increasing the habitable area, thus generating more rental income. Fusion Director Charles Phélines, responsible for property sourcing and design, is former business partner of Jocasta Innes of Paint Magic fame, is an expert in transforming smaller spaces.
Fusion also designs and manages any necessary refurbishment and building work. Generally this involves converting a 3-bedroomed property into 5-bedrooms and adding a bathroom.
Fusion provides everything that is required to acquire an investment property; detailed feasibility studies with projected profits, financial services, property tax advice and accounting services, sourcing properties, building works, compliance with council regulations, letting and management.
George Shaw, Avocado Media T: 01892 750851 M: 07860 695555 E: email@example.com
Gregoire Godin, MD, Fusion Property M: 07803 584180 firstname.lastname@example.org
Charles Phélines, Director, Fusion Property M 07973 505617 email@example.com
Editors’ Notes: Photos available
Typically, Fusion clients invest c£50,000 from savings, by releasing capital on an existing property through remortgage, or a mix to the two. Following conversion to an HMO, revaluation and remortgage, c50% this initial investment is returned, leaving a net investment of only c£25,000.
Rooms are rented inclusive of all utility bills, so tenants receive one bill, with no extras to pay. Fusion tenants also benefit from clean, furnished, comfortable rooms in well managed properties which meet full Health & Safety and HMO regulations. Properties feature washing machine and dryer, carpets, curtains/black-out blinds, central heating, double-glazing and insulation. Broadband access and TV connection (with TV if required) is provided in each room. Kitchen and bathrooms are shared.
Fusion Investment Property Services Ltd
Avenue Business Centre, 17 New Road Avenue, Chatham, Kent ME4 6BA
T: 01634 821113 F: 01634 831255 E: firstname.lastname@example.org W: email@example.com