Anchor Property provides yacht crew with transparent solutions in the UK for the ever-growing list of obstacles they face when trying to invest in property. We did a profile highlight on Anchor Property back in June on our blog so I wanted to catch up with Jack Wathen from Anchor Property once more since I started the Nautic Nomad podcast for our listeners benefit. Even though they are based in the UK, Jack and his team has a lot of knowledge to share that can help anyone who is looking to invest in property.
I also asked Jack some of the questions we received from our followers of our Instagram Stories.
Jack Wathen is a former yachtie who has worked on M/Y Diamond A and Lady S. He studied property in University and after he left yachting he started an investment portfolio called King Croft Homes. Anchor Property was born out of that business as a way to assist yacht crew in making clever decisions when purchasing an investment property.
*Disclaimer – The material covered in the Nautic Nomad podcasts are for educational and information purposes only. It is not intended to be investment advice. Seek a duly licensed professional for investment advice.
Crew Questions on Property Investment:
1.What are the benefits of property investment?
Using your hard earned money to work for you now and in the future. Now it will help to turn a monthly income but the really important thing is the future and picking an investment property that will increase in value overtime. Investing in property can help you to lay down a solid financial foundation.
2. What exactly do you look for in a property before you decide to invest and how do you help people decide the best places to buy?
Looking at every aspect from telephone and wifi connectivity, to crime rates, bus routes, and future plans for the area are all key elements. For example it doesn’t help to invest in a property where they are planning to put in a power station. Your return on investment over years is the most important aspect to think about in property investment as that is where you will see the biggest returns if done properly. The monthly income is great but where you really make the money is in resale if you do it right, your property could double or even triple in value over 10 years.
3. What are your criteria that helps people pick the right place for them to buy and maximize their investment?
London used to be a hot spot but the prices have been leveling off so investors are looking elsewhere for higher returns. Making a smart investment is finding a good area where there is the opportunity for the property to increase in value, looking at the type of building, what will happen in the future in that area and all of the legal aspects.
4. What do you find is the biggest mistake people make when it comes to investing in property?
Trying to rush things. It’s important to take the time to do the research.
5. What is the best time to purchase property? Is there a certain season?
In the UK, before Christmas is a good time to be looking. If you are selling your house you really want to sell it before Christmas so if you are buying – people are desperate to sell. Summer holidays is also a great time as everyone is on holiday and families are off – most people aren’t looking to buy so it can be a great time to get a bargain. Generally the best time, was three years ago. Avoid the analysis paralysis and just do it.
6. What is the cities are looking the best to buy property in the UK right now?*
Right now Birmingham, Manchester and Liverpool. Liverpool in the last 12 months has seen the highest raise in house prices in the UK with over 7% gains.
7. Can you share some of your success stories to date as an example?
Freddie worked with Jack on M/Y Lady S and was Anchor.Property‘s first client. He has since joined them on the practical side and his property has just been reassessed at a 12% increase in value. Besides that he earns a monthly return on the rental and has gone onto invest in his third property now.
8. How much deposit do people generally have to put down for a mortgage?
In the UK for property investing a buy-to-let loan requires a 25% down payment for UK residents. For foreign nationals the process is a bit more involved and you can ask Jack for assitance with learning more about that if you would like to invest in the UK.
9. What are your rates and fees?
For UK Clients and foreign clients the fees are different. They usually charge a flat fee to be as clear as possible. UK Clients the fee is 2,000 pounds and they get the entire process managed for them. You will have an intake interview to discuss your goals, plans and risk – then be introduced to their mortgage broker. From there the team will review an array of homes for you and send you their top choices to pick from.
They will also always try to negotiate on your behalf for a better price so their rate and the service provided then becomes free.
“We always try to negotiate out our fee… it also means that people are getting the service that we provide for free.”
Jack Wathen | Anchor.Property
10. How does it work with crew who are away at sea at work to view the properties and make an informed decision?
Jack goes to view a variety of potential properties and asks each estate agent a pre-prescribed list of questions. From there he takes lots of photos of the property first hand as listing photos can sometimes be decieiving. They then remove any properties that are not worthwhile from the selection. The team then puts together an appraisal package and sends it through to you the client to review. They take the hard guesswork out of going to see places that are not worth it and just present you with the very best options to choose from.
Once you have chosen a spot, they always schedule a second viewing as having a second look or a second set of eyes can help you notice different things.
The Importance of Hiring the Right Mangement Company to Manage your Investment Property
Long term managements companies in the UK generally charge around 10% and help you handle everything from a legal standpoint as well as the daily operations and payments. It’s very important to source the right management company as there are legal proceedures in place to protect renters and you could end up with occupants who are past due in rent and you could struggle to evict them legally if things are not done correctly. That is just one example why from a legal and investment point of view as to why it is important to have a dedicated management company that has been thoroughly vetted. Anchor Property UK has vetted management companies who they can recommend – email Jack Wathen for his recommendations.
How to Contact Anchor Property for More Information
Mentioned in the podcast by Randi:
Glen Gurvitch with Floridas Property Management in South Florida – a great long term letting agent.