Frequently Asked Questions

The minimum we accept in each investment is £10,000 and the maximum depends on each individual project. The available investment depends on the total costs of purchasing a house, the renovations, legal fees etc added to make a total. We only require 25% of the total cost of a project and this can be divided up between individuals or one person who funds 25% of the full cost.

Property Transformation Ltd makes a decision based on 3 things: location, length of renovations and saleability. We work in North London and choose period properties that are tired and need updating. We don’t choose projects in which a property is derelict and needs a lot of structural work. Our projects are meant to be relatively easy with a quick turn around. The balance between these factors makes a good investment. Our investors want to access their money quickly so we aim for properties that will take 6 months max to turn around. If a project required planning permission for, say, converting a house into flats we may consider a longer time period but in general they have to move quickly.
 

We have, at any given time, spreadsheets on the next projects that we are about to run. Each project will have a fully transparent assessment of the figures involved and high and low projections of the return on the money invested. You can ask us what is coming up and we can discuss the options. Our approach is individual and we can tell you what space is available in our next projects for investment. Every project is different – some are houses and some large flats so the figures differ every time. We are always looking for new investors so feel free to tell your friends and associates.
 

There are some investment opportunities that have paid spectacular returns – 40% + on an individual’s money. It depends on how we are running the project. In general we aim to give back no less than a 15% return on our investor’s money, after tax.

In any given situation an individual pays their own tax and this is for the simple reason that each person investing may be able to offset other income with the profit we return to them. Every situation is different depending upon the tax bracket that the individual falls into. We have taken advice from property solicitors and accountants and clearly, we return the profit to the investor before tax. We can certainly advise as to what we expect the tax to be, however it is up to the individual. This means that it is up to the investor to take advice as to how best to use the profits they have made. For instance, if an investor wishes to roll their investment into the next deal and only takes out a certain level of profit, they may be taxed only on what was taken out. This is a question for your accountant and we advise you to take advantage of some of the methods of offsetting profit and tax.
 

The contract we sign is a Deed of Trust between Property Transformation Ltd and the investors. As the investors have only one role, and that is to provide finance for the project, they are considered to be sleeping investors. The company’s responsibility to the investors is to purchase the property, run the renovations, sell the property and at the end, return a profit on the investment pro-rata. The contract establishes the name of the investor, the address of the property, the sum invested, the length of time the money will be held and the percentage profit on the investment. It protects both the rights of the investor and the rights of Property Transformation Ltd. Each contract is individual and pertinent to the deal in place.
 

We have a lot of experience in this field and work with surveyors, estate agents and also know a lot about the areas we work in. We keep up with current rises in value and know when to sell.

Our business is low risk. We make it low risk and high return by doing our homework. We choose the location very well; we only choose houses that are desirable and will sell easily; we get deals that never go to market and are under market value; we source materials well; we do a comprehensive budget and stick to it; we create a contingency fund in the figures; we have excellent builders who renovate to a timetable and we sell at the best times of the year. If the market is sluggish we bargain hard and buy up property and if it is high then we sell high. The consistent returns on our projects show that property prices always rise over time.
 

The main variable is the timing of the sale. We make every effort to sell at the best times of the year ie. spring to early summer and again in the autumn. We do not aim to sell during August or December. This ensures that we do the renovations on time, during the low months so that we are ready to sell at peak seasons. If a sale takes a little longer we have already factored this into the equation at the beginning of the process by having a contingency fund to pay for the interest for the duration of the loan. We also have a very realistic expectation on the yield and therefore put our reputation on the line. As mentioned before, we agree the lowest return at 15% after tax. Before embarking on a project we have already done our homework so that we have secure knowledge of the location, the property, the duration of renovation and all costs involved.