FAQ
When we invest our hard-earned cash, we want to know it's safe and going to work hard for us. So we expect you will want to know the same.
Here are the questions we get asked the most about risk and return, and how we minimise risk.
It is used towards either the purchase or the renovation of a property. It’s tangible. You can even visit the site if you like.
What do you do with my money?
Typically 12-18 months. This is a likely timeframe to buy, renovate and either refinance (remortgage) or sell a property. Some deals have a 9-month option available.
How long is my money tied up?
Yes, £25,000. This amount makes a meaningful impact, both in terms of contributing to the cost of a project and in terms of an interest payout amount to you.
Is there a minimum amount of money to invest with you?
No. It’s important you understand both how Next Level Living works, how we use funds and what the associated risks are.
Can anyone invest with you?
This question is usually trying to understand how much experience I have working with private lending.
How many investors do you work with?
What if house prices fall?
Whilst prices are stable in our investment area, the possibility of further decreases cannot be ruled out. Properties will only be bought either below market value or where we can add value so that equity is owned from the word go. This provides a buffer for any decreases in value so that no properties end up with negative equity.
Also, we are investing predominantly for cash flow rather than capital growth. In a buy-and-hold strategy, we are less susceptible to the effects of short term house price fluctuations. Property values work in 9-year cycles, mostly. If house prices fall, we will simply not sell the property until the market rises again, and continue to earn monthly rent in the meantime.
We also factor in the rate of house price increases with realistic re-financing valuations that we know will be achievable within the current market. Our main focus currently remains in high demand areas and all properties are bought discounted from current market values
What if interest rates go up?
We stress test all calculations before we buy a property. Projections are run at higher interest rates than we are achieving in reality.
We only buy properties that generate a minimum of £800+ cash flow after all expenses. This is large enough to cushion against a future cost increase. We actually expect the majority of the portfolio properties to yield a minimum of £900 per month each.
How is my investment secured?
Every investment is cemented with a legally binding Heads of Terms, specific to each investment agreement. It defines the amount, the term and the interest rate. Contact us for typical annual interest rates.
The beauty of working with individuals as that there is no corporate formula: we each have the opportunity to discuss specific terms until we are comfortable with the agreement.
What if I need to get my money out?
A minimum term is typically between 1-3 years at a time. This allows the project to complete and therefore the value to increase. This is how we deliver your agreed rate of interest. We always agree upfront a notice period into our Heads of Terms. If it is earlier than planned, this will possibly impact the return, depending on whether the property has had a chance to mature.
How does investing affect my tax?
That depends entirely on your tax position and is personal to everyone. We cannot advise you on your tax and recommend that every investor understands their tax implication so we can discuss the most efficient way for you to invest.
We must be clear that this is not a guaranteed return. Property investments involve risks (just as the stock market and other forms of investment do). These include loss of capital and lack of returns. Risks involved vary by project type so please ensure you are clear on the risks of our specific investment. To minimise risk and inform investment as far as possible, projections are based on professional valuations, evidenced comparables and market knowledge. They are not actual performance. Dividends may be lower than projected.
However, I can mitigate risk. I talk you through how I do that on a free 30-minute investment consultation call, designed to explore what type of investment best suits you. You can book yours here.
Are returns guaranteed?
Let’s chat. A free 30-minute consultation call can help you decide if this is the right option for you at this point.