Colin Parker
Senior Partner

"Are You A Cautious 'What If' Investor?
Our Armchair Investment Service Answers Every Question!"

Are you interested in property investment but think ...

WHAT IF ... I don't know the area, how do I know it's a good investment?

WHAT IF ... the property is not in good condition?

WHAT IF ... I have to spend £1,000, £2,000, £3,000+ before it will rent?

WHAT IF ... I spend money on refurbishment and I get a shoddy job?

WHAT IF ... the property is in an area where rental demand is low?

WHAT IF ... the quoted rental is higher than I can achieve?

WHAT IF ... I can't find a tenant and I have to pay the mortgage myself?

WHAT IF ... I have a problem tenant and I live miles away?

WHAT IF ... I can't find a reliable property management company?

We know from experience that these are the questions and concerns that many investors have especially when the property on offer is in an area many miles away from where you live.

The vast majority of our current investors do not live within 100 miles of the North East which is where we source our Armchair property.  In fact the majority reside in the South and we even have UK investors who now live overseas.

The simple fact is the low price, high yielding buy to let properties that most investors prefer are just not available in the South.  That means investing in the North is often the only option if you want to maximise the number of properties you can buy with the investment that you have available.

With property prices showing signs of growth, interest rates reduced from above 7% to below 5%, and rental demand strong ... you may well agree with the experts who believe that this is a 'once in a generation' opportunity to invest in property.

But ... then you stop and think about all of the WHAT IF'S above ... and you hesitate.

We understand your hesitation because we have answered these investor concerns ever since we first introduced our Armchair property service three years ago.

"£32,500 equity on
our last deal, keep
them coming!"
Hilary & Rob R. Alnwick

"my first ever property
deal was through
ONEPORTFOLIO-NGU"
Ann Marie B. Leeds

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Who Are ONEPORTFOLIO-NGU-NGU?

ONEPORTFOLIO-NGU is a company jointly owned by myself, Colin Parker, my wife Karen and brothers Nigel and Chris Fitzackerly.  We operate from our North East offices near Alnwick in rural Northumberland and in Gateshead near Newcastle.  We also have an office in Birmingham run by Nick Ellsmore our Armchair Investment Development Manager.  Nick is always available to meet our many subscribers and investors who are based in the Midlands and South of England.

ONEPORTFOLIO was established in 2006 with the aim of providing a high quality 'A to Z' personal portfolio building service for investors right through from the initial sourcing of the property to tenant finding and full property management.  As the business grew we engaged the services of NGU Lettings in late 2008 to tenant and manage the growing portfolio’s of our investors.  This partnership was very successful and in February 2010 the partnership was legally formalised into a new limited company called ONEPORTFOLIO-NGU Limited.

We named this service 'Armchair Investment' because the aim is quite literally to do everything for our investors, helping them to personally build a profitable portfolio with the minimum time and effort ... and the minimum cash investment!

Armchair properties are sourced exclusively in the North East and include areas in and around Newcastle, Sunderland, Durham and Middlesbrough. 

We source Armchair property only in the North East for two reasons: one, because we know this area intimately and we can therefore advise investors accordingly and two, because we are able to offer a highly professional and efficient 'hands on' tenant sourcing and property management service.

ONEPORTFOLIO-NGU now have over 350 properties under management and we are recognised by both investors and many leading authorities within property investment as one of the UK's most professional and reputable property sourcing, letting and management companies.

We provide a full property buying service which includes access to mortgage brokers, solicitors, tenant sourcing and letting agents and FSA regulated Independent Financial Consultants who can advise you on property tax and related investment issues.

Opposite you will find just a small selection of testimonials and we can also provide you on request with the names and contact numbers of investors that you can talk to personally.

What Makes Your Armchair Service Different?

Right from the start of our Armchair concept we wanted to provide a service which was geared towards fulfilling the personal requirements of each individual investor.

Put simply, we wanted to say to our investors ... "you tell us what you want and we will go and find it for you".

All too often property is sourced and offered to investors not on the basis of 'is it right for the investor' but 'is it right for the property sourcing company'.

This is one of the reasons why so many investors have been lured into buying high value city centre apartments or off plan developments which are are often high risk for the investor ... but offer high profits for the sourcing company.

By contrast ONEPORTFOLIO-NGU Armchair investment provides a true personal sourcing service for investors.

Before we start to source property for you we will explain the various investment strategies that you can use to build your portfolio.  The strategy you choose will depend on factors such as your age, current income, available investment, planned retirement date and your current and future view of the property market.

We source resale property in the valuation range £50K to £150K because we believe this property will consistently have both a strong rental demand and a strong purchase demand from first time buyers. 

Property in this valuation range also offers investors the dual benefits of lower mortgage payments and higher net rental yields which combine to lower investment risk and exposure to rental voids.

As an Armchair investor you can specify property that meets your investment requirements ie., valuation, type of property, age of property, number of beds, minimum rental yield etc.

We will then personally source that property for you - at 20% below current market value giving you up to £30,000 instant 'gifted equity' - and offer that property to you exclusively. 

You are under no obligation to accept any property offered and if you want to 'pass' we will simply source and offer you another property until such time as you are completely happy and ready to proceed to purchase and completion.

However, unlike most property sourcing companies, our Armchair service does not stop once you purchase.  We will tenant the property for you, give you a rental guarantee and provide full property management.

It can take just four weeks to complete the purchase of your property ... but buying a property is really just the beginning of your investment.  You should take a 3 to 10 year view and that means holding, tenanting and managing the property for many years to come.

That is where I believe our Armchair service excels.  We tenant properties quickly, manage efficiently, minimise voids and maximise investor returns.

Our investors will tell you that this is the biggest single reason why they re-invest with ONEPORTFOLIO-NGU.

How Can I Buy A Property For Less Than £20,000?

The average valuation of an Armchair property is c£75,000.

Through our extensive advertising and marketing we generate enquiries from vendors who are looking to sell their property quickly.  This may be due to many reasons: for example, financial difficulty, equity release, divorce, emigration or simply to make sure they sell in time to secure a property they want to buy.

We negotiate with these vendors and a small minority will agree to sell at a discount which allows us to offer you the property at 20% below market value.

The market value of the property will be established by an independent RICS (Royal Institute Of Chartered Surveyors) valuation and you will buy the property at a 20% discount to this valuation.

On a £75,000 valuation this means you would buy the property for £60,000 giving you genuine instant 'gifted equity' of £15,000. To buy the property you need a 25% deposit which amounts to £15,000 plus our sourcing fee of £4,985 - making a total of £19,985.

Our sourcing fee of £4,985 includes all of your purchase costs which include mortgage broker fees, valuation fee, legal fees and disbursements, purchase administration fees. These fees normally amount to c£2,500 which means that our sourcing fee is only c£2,495.

Therefore ... to purchase a £75,000 property your total investment is just £19,985.  Obviously on property valued below £75K your total investment will be proportionately less and on property over £75K proportionately more.

On our property valuation range of £50K to £150K your total investment to purchase will range from just £14,985 to a maximum of £34,985.

At current mortgage rates (4.35%) a £60,000 mortgage on a £75,000 property would cost £163pcm with a rental return of c£425pcm.  After management and property insurance fees - £52pcm - your net rental income would be £210pcm or £2,520pa. That gives a 12.6% annual return on your initial £19,985 invested.

Is The Property Price Really 'Below Market Value'?

Even during a boom market savvy property investors NEVER pay full market value for a property.

As a ONEPORTFOLIO-NGU Armchair investor it is guaranteed that every property you buy will be a genuine 20% below current market value.  With an Armchair property valuation range of £50K to £150K that means you get 'instant gifted equity' of £10,000 to £30,000 on every property in your portfolio.

However it is absolutely essential that investors know exactly how 'market value' has been defined.

Because as many investors have unfortunately found to their cost ... the 'market value' placed on a property by the selling company is often not the true current market value.

In the past many investors have been lured into buying 'below market value' property with the promise of huge 'instant equity' which in many cases has turned out to be far from the actual reality ...

Nowhere has this been more prevalent than in the new build or off plan property market both in the UK and overseas.

Off plan property is often sold months (sometimes even years) in advance and the 'market value' is therefore a calculated guess at best and pure speculation at worst.

This is especially true in the current economic climate where a multitude of factors could influence the actual market value once the off plan development is completed ... always assuming of course that it IS completed!

The only 'true' market value of a property is an independent RICS (Royal Institute Of Chartered Surveyors) valuation which is undertaken on behalf of your mortgage lender immediately prior to the purchase of the property.

Never believe or accept market values which have been placed on a property by a developer, estate agent or a property sourcing company.  Remember these are at best calculated guesses and at worst profit motivated speculation.

Are Your Armchair Fees Fully Inclusive?

As experienced investors know, and unfortunate investors have discovered to their cost, the cost of buying an investment property is often far more than the 'ticket price'.

Before you buy any property make absolutely certain what is, and what is not, included in the 'price' because there are multiple purchase costs involved in buying a property. 

Buy to let mortgages require a 25% deposit ... is this being subsidised and if so by how much?  Are the broker fees included for arranging your mortgage?  Are your legal fees included?  Are any deposit bridging costs included?  Are administration fees included for managing the sale and purchase? Are property finders fees included? 

If any of these costs, or any other costs, are not included in the 'ticket price' but hidden away in the contract small print ... they could add hundreds or even thousands of pounds to your purchase price.

But ... once you purchase your property there could still be another big ‘hidden’ cost that could add £1,000’s to your true outlay .  And that is the cost of bringing your property to ‘ready to rent’ condition.

If you don’t ask specific questions about the condition of a property ... or have the opportunity to view before purchase ... you may be in for a costly shock if your letting agent tells you that the property needs major or even minor refurbishment before it is suitable to rent.

Our Armchair investors do not have these concerns.  We offer property in guaranteed ‘ready to rent’ condition and any refurbishment such as new carpets, painting and minor repairs are INCLUDED in your purchase fees of £4,985.  That means you know exactly what your total investment is before you purchase – just £4,985 plus 25% deposit.

Should I Source Property Myself ... Or Use A Company?

Experienced investors with time available often do both. 

Investors may operate their own advertising campaigns to generate enquiries from motivated sellers prepared to sell at a discount.  And they will also buy 'ready made deals' direct from property companies.

However sourcing your own property deals is becoming increasingly difficult, especially if you want to buy at a substantial discount to true market value. 

The reason for this is that the market conditions that are making investors more confident, ie. rising prices, are also making vendors more confident.  

In addition lower interest rates have helped many vendors to stabilise their finances.  Because of this there are far fewer highly motivated vendors willing to accept substantial discounts than there were just six months ago.

If you want to personally source property at a minimum 20% below RICS (Royal Institute Of Chartered Surveyors) valuation you need to have a highly effective (and often costly) marketing campaign and very strong vendor negotiation skills.

The vast majority of investors do not have the time or the experience to do this and must therefore use the services of a property investment company.

What Are The Disadvantages Of Buying From A Company?

The big advantage of buying investment property from a sourcing company is that the below market value purchase price has already been negotiated with the vendor.

The big disadvantage is that - with very few exceptions - the sourcing company guarantees nothing else other than a below market value purchase price.

They don't guarantee the condition of the property ... they don't guarantee the rentability of the property ... they don't guarantee that the market rent advertised is achievable ... they don't offer a refurbishment service ... they don't offer a tenant finding service ... and they don't offer a property management service.

That is when the 'scales often become unbalanced' ... you have to weigh up the benefits of buying a property at a below market value price against the disadvantages of investing in an area that you are totally unfamiliar with.

You also have to consider this fact ...

If the company sourcing the property does not take on the responsibility for tenant sourcing and property management how diligent are they likely to be in only offering you property in areas where rental demand is strong?

At ONEPORTFOLIO-NGU a key element of our Armchair service is that we DO provide a tenant and property management service.  And because of that we only source and offer property to Armchair investors in areas where we know there is a strong rental demand and where we are confident that a tenant can be found quickly.

Where a company just provides a sourcing service the relationship between a property company and an investor only lasts for four weeks ie., the time it takes to complete the purchase.

At ONEPORTFOLIO-NGU our relationship with you continues long after your Armchair purchase has completed ... hopefully for many years to come!

How Can I Be Sure My Property Will Rent?

We are asked this question more often than any other.

After all, the most important word in buy to let property investment is LET.

A core principle of property investment is that your tenant effectively pays for the running costs of your property, provides you with an income, and allows you over time to benefit from increased equity through capital growth.

And yet ... one of the single biggest reasons why many investors fail to achieve their investment objectives, why they fail to retire early or achieve financial security ... is quite simply down to buying property that is difficult to rent.

If a property is not tenanted, subsidising one buy to let mortgage out of income can often prove difficult for an investor ... subsidising two, three, four or five mortgages can prove impossible.

When this happens the investor is left either at best with a forced sale often at hugely reduced prices or at worst with repossession and possible bankruptcy.  This unfortunately has been the fate of many investors, especially during the current recession.

Investors who buy high value property ie., over £200K, are taking on mortgage responsibilities that are a minimum of £700pcm at current interest rates, but which could easily go nearer £1,000 if interest rates rise.

This is a major factor in our decision to only offer property to Armchair investors in the valuation range £50K to £150K.  At an average valuation of £75K the current mortgage is just £163pcm and the average net rental yield c£210pcm.

The single biggest reason why Armchair investors repeat purchase with us is because a) we tenant new purchases quickly and b) we minimise rental voids through stringent tenant referencing and highly efficient property management.

Our average time from completion of purchase to a property being tenanted is just two weeks and we back this up by giving you this RENTAL GUARANTEE ...

Is This A Good Time To Invest In Property?

As I am sure you appreciate, the tumultuous events that have taken place in the global financial system since the start of the credit crunch in August 2007 are unprecedented in living memory.

These events have had a massive impact on property prices which, depending on area and type of property, are now 20%-40% down on the peak prices of early 2007.

However, whilst these price falls are dramatic, cyclical ups and downs in property prices are nothing new. 

One of the key factors in your property investment strategy is understanding how rising and falling prices impact on rental yields and how this can determine if and when you invest.

In general terms increasing house prices are the result of a readily available supply of credit and relatively low interest rates which in turn generally indicate a stable or expanding economy.

Falling house prices (as everyone now knows!) are often the result of a stricter supply of credit and/or higher interest rates which generally indicate a less stable or recessionary economy.

However, whilst house price valuations can experience dramatic swings in a relatively short period of time, house rental valuations are not affected in the same way ie., rentals do not not increase or decrease in line with prices.

What this means is that rental yields fall during periods of rising prices and increase during periods when prices fall. 

One of the key 'buy' signals in property investment occurs when investors believe prices are at or near the bottom and about to rise.  In this scenario current rental yields are high, mortgage gearing in relation to projected property values is at its lowest and the potential for short to medium term capital growth is favourable.

This scenario - which many investors would call the time of maximum opportunity - generally occurs for only a short period in each property price cycle.  Many experienced investors now believe that we are in exactly such a period.

Add in the fact that buy to let mortgage interest rates have continued to fall throughout 2009 ... and that most experts expect base rate to stay at or close to 0.5% for some time ... and the 'buy' signals appear to be very strong.

Yet another potent factor in the underlying strength of property investment is that the UK continues to have a shortage of housing to cater for increasing population and demand.  The Governments Baker Report of 2004 calculated that c240,000 homes needed to be built every year for the next 20 years.  Yet since that report no more than 164,000 homes have been built in any one year and new house starts are likely to have dropped below 100,000 in 2009.

Quite simply this means that the current housing shortage is becoming more acute and demand is likely to exceed supply for years to come thus maintaining upward pressure on medium to long term house prices.

Can You Show Me Examples Of Armchair Properties?

Please click the links below to view examples of properties sourced for Armchair investors:-

http://www.one-portfolio.co.uk/uploaded/deals/Newbiggin2.pdf

http://www.one-portfolio.co.uk/uploaded/deals/Hetton2.pdf

http://www.one-portfolio.co.uk/uploaded/deals/Southbank2.pdf

http://www.one-portfolio.co.uk/uploaded/deals/Thornaby2.pdf

http://www.one-portfolio.co.uk/uploaded/deals/Seaton.pdf

http://www.one-portfolio.co.uk/uploaded/deals/Newton.pdf

You will notice that we provide very detailed information and if you register as an Armchair investor this is how we present property to you.  You can call us to discuss any aspect of the property prior to making an investment decision.

We visit every property and all photographs and descriptions are done by ourselves and not by the vendor or copied from an estate agents details.

Remember ... we will only source property that matches your personal sourcing criteria so these properties should be viewed as examples and are not necessarily indicative of the property you would be offered.

As an Armchair investor you are under no obligation to accept a property offered and if you do decide to 'pass' we will simply source and offer you alternative property until you are entirely happy to proceed to purchase.

When viewing these properties please take into account the valuation ... these properties are valued in the range £50K-£150K and I have given examples of typical properties in typical areas.

All of these properties are currently let and earning net rental income for Armchair investors and every property was purchased at 20% below RICS valuation.

How Do I Pay The Armchair Investment Fees?

As detailed earlier to purchase an Armchair property you pay a 5% deposit based on the current RICS valuation plus total purchase fees of £4,985.

To give you peace of mind these fees are paid in three stages and we offer a 100% fully refundable guarantee of the initial registration fee if you are not satisfied with our service prior to accepting a property or you are unable to obtain a buy to let mortgage.

..........These are the 3 fee payment stages:

..........1.       £985             To register as an Armchair Investor

.............2.       £4,000          After valuation of an Armchair Property

......... 3.       25% Deposit   Immediately prior to property completion

Properties are sourced to instruction and once you register as an Armchair investor we would discuss your property investment strategy and compile a detailed list of your property requirements.

We would normally expect to source and offer you a property within four weeks.

When you are offered a property you will receive very comprehensive details view property examples by clicking but you are under no obligation to accept a property. If you 'pass' we will continue to source and offer property until you are 100% confident to proceed to purchase.

If you accept a property you will then talk to our broker to arrange a mortgage.

If you receive a DIP (decision in principle) from the Lender the property will proceed to valuation by a RICS valuer selected independently by your Lender.

If the valuation is such that we can fulfill our contractual obligation to offer you the property at 20% below this valuation it is only at this stage that you pay the balance of £4,000 and the property will then proceed to completion.

I Am Interested ... What Next?

If you are interested in discussing our Armchair service in more detail or you have any questions please do not hesitate to call me personally on 01665 577 502.

You are also more than welcome to meet myself and my team here in the North East either through an independent visit or by attending one of the free seminars that we hold every month.

I can assure you that these are not 'sales' seminars but are geared totally towards giving you sound advice on property investment plus giving you the opportunity to meet with us and ask us any questions you may have.

You will also have the opportunity to possibly meet and talk to some of our current Armchair investors who may be visiting us to view property that they have recently purchased.

I genuinely believe that our Armchair service offers you an exceptional opportunity to build a high yield, high equity portfolio for a relatively low investment with relatively low risk.

One of the most common laments that I heard from investors during the last property boom was "I wish I had started to invest earlier". 

Whilst no one can guarantee another boom, the signs are now flashing 'buy' in the current market.  If you agree ... don't miss this opportunity!

Thanks for reading, I hope you have found this of interest, and I look forward to perhaps meeting you in the near future.  If you would like to send this information to a fellow investor, friend or colleague please click here.

Best Regards,

Colin Parker
Senior Partner

PS.  If you have not already registered your details with us please do so below.  You will receive my weekly Property Investment Newsletter with the latest news and tips.