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How To Invest

FAQ's

Structure

Your property purchase can be structured in your private capacity, through and LLC or trust fund. Smithprop can assist with the establishment of these entities in whichever jurisdiction you choose together with banking facilities if required.

Payments

Once you have made your choice, the property will be reserved for you with payment of a reservation fee. The contract documents are prepared leading to closing/exchange, followed by a second payment. After signature of the contract, a payment plan is scheduled, up to the final payment including costs. These funds are held in an escrow account until the date of registration of the property into your name, with interest accruing to you.

The funds are paid out of the escrow account by the transferring attorneys to the developer in terms of a payment schedule defined by the progress of the works and verified by an appointed Quantity Surveyor or on completion of the contract.

Costs

Conveyancing costs and real estate taxes/stamp duty typically amount to 2-3% of the property costs.

Timing

Some of the properties we offer already exist and transfer into your name can be effected with 4-8 weeks. Other properties are bought off plan and take between 6 months to a year to complete.

On site management

All properties we offer include full on-site management by a top flight management company, including letting, rent and collections, security, payment of taxes and levies, financial accounts, cleaning and maintenance, insurance and administration.

These fees are typically 1-2% of the purchase price per annum.

Occupation and Rents

All the properties are maintained to the highest standard have extremely high tenancy in excess 95%.

Net rental income is paid into your account anywhere you wish.

Guarantees

These investments all offer a guaranteed net rental income for the first number of years. This means that rental income is paid to you regardless of the tenancy during the period that the guarantee is in effect.

Following the expiry of the guarantee period, the property will continue to be let by the on site management team on your behalf, with annual rent escalation and the net proceeds being paid to you. Typically the rent escalation exceeds the inflationary escalation of the running costs and will show an increase in yield over time.

Accounting and Taxation

Smithprop offers a full financial accounting and taxation service if required. The USA and UK have tax free threshold on income below $ 12,000 and £ 9,000 annual income respectively.