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Meet Sean: Transforming Our Property Investment Company

We’ve embarked on a new chapter at Nichol Smith Development, and we’re thrilled to introduce our latest team member, Sean. In this blog post, we’ll delve into why Sean’s arrival is a game-changer for our company and the exciting possibilities it brings.

The Bottleneck Breakthrough

For years, Nichol Smith Development has relied on a network of skilled subcontractors to bring our property investment and development projects to life. While this approach has served us well, we recognised a critical bottleneck in our operations – the need for a joiner. Finding an available joiner often delayed our projects, impacting efficiency and timelines.

A Trusted Recommendation

As we pondered how to address this challenge, fate stepped in. One of our most trusted subcontractors shared invaluable insight with us. He introduced us to his best friend, Sean, a seasoned joiner with three decades of experience. Sean was seeking a new opportunity, a fresh start with a company that shared his dedication to excellence. Intrigued, we invited Sean for an interview, and it didn’t take long for us to realise that he was the perfect fit for our team.

Experience that Counts

With a remarkable 30-year career in joinery, Sean brings a wealth of knowledge and expertise to Nichol Smith Development. His deep understanding of the craft and commitment to quality align perfectly with our values. Sean’s experience is more than a resume; it’s a testament to his dedication to his trade.

Accelerating Project Momentum

Since Sean’s arrival, we’ve experienced a noticeable transformation in our operations. Adding a full-time joiner has unlocked new levels of efficiency and project momentum. No longer do we face the uncertainty of finding available subcontractors. Sean is here, ready to tackle the joinery work and keep our projects moving forward.

Delivering on Our Vision

At Nichol Smith Investments, we have big dreams. We aspire to build a property portfolio that generates substantial cash flow, allowing us to provide the best for our family and investors. 

Sean’s contribution is helping us realise these dreams. His expertise ensures the timely completion of projects and enhances the quality of our work. As we strive to be Edinburgh’s most respected property investment company, Sean’s dedication to excellence aligns seamlessly with our vision.

A Bright Future Together

The addition of Sean to our team marks a significant milestone for Nichol Smith Development. It signifies our commitment to growth, efficiency, and excellence.

In conclusion, Sean’s arrival has already impacted our business, and we’re excited about the future. His experience, dedication, and expertise make him an invaluable asset to our team. We look forward to achieving new heights together as we work towards building a property portfolio that fulfils our dreams.

Stay tuned for more updates on our journey. The best is yet to come at Nichol Smith Investments!

Money In The Bank Or Money In Property?

Nowadays, more people are becoming wiser in handling their hard-earned money. To secure a better future, investing is a popular option for business-minded individuals. However, we have different risk appetites. For conservative investors, keeping money in the bank and investing in property are options they can consider.

But which is better? To better understand, here are the facts to help you choose which works for you.

Money In The Bank

This is what we identify as a savings account. In reality, keeping a savings account is not for building wealth, it’s having a safe location to just keep your money. It can increase your net worth, but keeping money in the bank with low-interest rates does not make good investments.

In a recent article, the Bank of England forecasted inflation to hit 4% this year as Britain’s robust recovery from the pandemic accelerates at a blistering pace. In comparison, the interest rate from the bank is only 0.01%.

That means that if you’re saving in the bank for investing purposes, you are losing money. The number may stay the same, but the buying power of that money is decreasing every year with inflation. 

Saving in the bank provides you with a spot to keep some money for reasons other than investing. A healthy savings account is one of the best ways to protect your investments.

In essence, a savings account is good for protecting your investments, preparing for emergencies, and peace of mind in your financial life, but it is not an ideal option for growing your money.

Money In Property

A more popular means of investing, with sure returns, is investing in property. Investing in real estate, when done correctly and strategically, can generate wealth. It is tangible, and there is more than one way to earn money. 

That being said, we’ve narrowed down some strategies for investing in property.

Rental Properties

Owning rental properties can generate a steady cash flow for an extended period of time. There’s always a market for this. Young families, young professionals, and immigrants are some of them. If you have the patience to manage tenants, this is for you.

House Renovation Flip

The fix-and-flip culture has exploded. Thanks to the popularity of home renovation shows. There’s a massive opportunity for income in this strategy, but you also need to find the perfect properties to flip.

Vacation Rentals

Airbnb is a perfect example. Vacation rental or short-term properties are accommodations that travellers can rent on a short-term basis. These accommodations range from high-end luxury properties to spare bedrooms in other people’s apartments.

HMO 

HMO’s are very attractive investments. HMOs, include residential accommodation, which is the main home for three or more unrelated people. The multiple occupancy/student market continues to grow. It produces high rental yields and is in demand due to the rise of the population.

The Bottom Line

If your purpose is to grow your equity and have a steady income stream, then property investing is definitely for you. Depending on how you prefer to invest, there are several options to choose from. However, in every investment, you should do your due diligence in knowing all the risks, facts, and numbers. Successful investments involve dedication, commitment and patience. 

On the other hand, if you only want to save for emergencies or want a spot to store your money for unexpected expenses, money in the bank is a safe place to keep it. 

Again, it’s a safe location just to keep your money, but it is not an ideal option for growing your money.

Investing in Property

We make property investing simple for people who want to benefit from high-quality property investments without investing their own time or resources. Our investors can benefit from a passive income on a fixed term, backed by a brick and mortar asset and a team of experienced property investment professionals.

Are you interested in finding out more?

Download our investor brochure by clicking the button below.

Why Invest in Edinburgh?

Edinburgh, without question, is a beautiful place to live in. Its rich history, innovation and creativity, iconic architecture, and vibrant culture make Edinburgh a desirable place to live, work, visit, and study.

This is exactly the reason why Edinburgh remains to be a hotspot in property investment. Seasoned property developers and investors have firsthand experienced success in investing in Edinburgh, while aspiring property investors see the potential towards building equity and wealth. 

There are numerous other reasons why you should invest in Edinburgh. The obvious reason is just the beginning. Let me dive in deeper and tell you why it is wise to invest in Edinburgh.

World-Class Education

Edinburgh is home to The University of Edinburgh, a high calibre university that is consistently on top. Currently occupying the 16th in the 2022 QS World University rankings. Other high ranking and performing universities are Edinburgh Napier University and Heriot-Watt University. This alone attracts local and international students that make up 20 per cent of the population.

Booming Tourism

Edinburgh is the 2nd most visited city outside London, with over 13 million visitors each year.

From family days out to cultural discovery, Edinburgh has many top attractions to satisfy everyone, including some of Scotland’s most visited free and paid-for attractions. In addition, the city’s backdrop of Arthur’s Seat, the Pentland Hills and Edinburgh’s Waterfront make the city an amazing place to live. 

Green Space

Edinburgh has more green space than any other UK city. The city’s well known green spaces include Holyrood Park and Royal Botanical Garden. In addition, the outskirts of the city feature major green spaces such as the coastal Dalmeny Estate, the semi-natural Cammo Estate, and the Pentland Hills Regional Park. 

To make sure Edinburgh remains the beautiful green city that it is, the Edinburgh City Council has approved plans to spend over £4m improving parks and green spaces across the capital. Thus, attracting more tourists to the city.

Population Growth

In terms of population, Edinburgh currently has around 542,599 residents. But, according to National Records Scotland, Edinburgh is growing fast. They say that within 25 years, the population could rise. Edinburgh City Council says Edinburgh could be bigger than Scotland’s largest city, Glasgow, by 2032. Foresight into the demand of property prices and rents in the future.

Regeneration

The ongoing projects and plans for the city are one reason why Edinburgh is currently thriving and why so many investors and residents plan to put down roots here. 

Regeneration will help to modernise the capital and promote the already existing features the city has. Many redevelopment plans are in place for the capital, including the St James Quarter and The Johnnie Walker experience. These upcoming builds will attract even more visitors, tourists, and tenants to Edinburgh.

Efficient Transport System

According to Andrew White, head of residential at Collier’, “The city’s compact size means that for business or pleasure, Edinburgh is easy to traverse by foot or the efficient transport system.”

Ease of transportation is a factor in choosing a home, and Edinburgh is a city that can be easily accessed and travelled. Either you travel by foot or travel using their transport system, you can be sure to reach your destination with ease.

The Future is Even Brighter…

The future of Edinburgh is looking optimistic. New developments are underway to improve the capital. Population and opportunities also keep on growing. With these factors and the reasons mentioned above, property investors are looking into a brighter investment future. 

And despite the global pandemic, Edinburgh’s property market remains resilient and continues to thrive. 

Investing in Property

We make property investing simple for people who want to benefit from high-quality property investments without investing their own time or resources. Our investors can benefit from a passive income on a fixed term, backed by a brick and mortar asset and a team of experienced property investment professionals.

Are you interested in finding out more?

Download our investor brochure by clicking the button below.

The Property Rollercoaster

Last week’s blog was a swift update on everything going on with Nichol Smith Investments. We’ve managed to catch up on ourselves and thought we’d take a moment to summarise what we like to call ‘The Property Rollercoaster”, which we feel has been going on for a few weeks.

The property market where we invest (Edinburgh), and I’m sure true to many UK cities, have been through many changes in recent months. The market got off to a flying start at the beginning of 2020. Properties were coming on the market and attracting a lot of interest. We saw many offers for every property, with practically every property on the market going to closing dates.

We’ve gone from a very strong property market to a very variable market. Some properties are still flying off the shelf, and some properties have had no interest whatsoever.

In the space of two weeks, we’ve seen dramatic changes.

We’ve even experienced properties gaining a lot of interest and notes of interest, and going to closing dates. At the closing date, there are no offers from the interested parties. This is unheard of!

We recently picked up a property as all the other interested parties pulled out. We were due to collect the keys tomorrow but the Registers of Scotland (where the title deeds are held and updated) are temporarily closed. Again, this is completely unheard of.

We also submitted a very low offer on a property at a closing date. We were notified on Friday that our offer was successful as the other eight parties interested dropped out. We’re delighted with our purchase and can’t wait to get working on it. It’s really a wild roller coaster ride at the moment.

As Warren Buffett rightly says “Be fearful when others are greedy, and be greedy when others are fearful”. It’s in times like this where we really leverage our buying power, as these are the times when wealth is created.

Many things in the property world can be out of our control. We like to plan out strategies A, B and C to cover all eventualities. I feel we may only be at the start of this new rollercoaster ride due to the difficulties facing the stock market and the global pandemic.

Investing in Property

We make property investing simple for people who want to benefit from high-quality property investments without investing their own time or resources. Our investors can benefit from a passive income on a fixed term, backed by a brick and mortar asset and a team of experienced property investment professionals.

Are you interested in finding out more?

Download our investor brochure by clicking the button below.

Joint Venture Contracts

This week’s blog is going to take a closer look at the joint venture partnership and what exactly should be discussed before entering into a joint venture. This will ultimately shape the contract you make legally binding between joint venture partners.

In case you missed it, last week’s blog discussed some basic principles of joint ventures and their place in the property world. It’s a good starting point if you’re completely new to joint ventures, so head back to the blog on the website and give it a quick read.

A joint venture contract doesn’t need to be a large, complicated, lengthy document, but it’s essential to take the time to get it right before you get going. It protects all the individuals in the joint venture to ensure all possible eventualities are covered, including profit split, responsibilities in the project, the exit strategy, and the backup plan.

First things first, you need to consider who will be involved in the partnership. Usually, the partners are the property professional who will bring their time, skills and knowledge of the industry, and the other partner will provide the funding and oversee payments throughout the project.

Have you considered who will own the property during the renovation?

Typically it will be the individual who provides the finance for the joint venture who will legally own the property. The individual who is not part of funding the property purchase may take out a legal charge on the property (for example an RX1 form) or a legal contract (deed of trust) to ensure the property cannot be sold or transferred without their permission.

Another important point to consider about a joint venture partnership is sharing profits. Here at Nichol Smith Investments, we like to see it as two or more parties coming together as equals, bringing equivalent skill or monetary value to the table, and therefore profits split evenly. However, that’s how we feel about joint ventures, and not all property professionals are willing to split profits equally. 

We have discussed buying, renovating and selling properties in joint ventures. This is the traditional way individuals can work together in property to share profits. However, there are plenty of people out there who are keen to work on all different types of property projects. For example, joint venturing on HMOs; where one partner is responsible for the project managing the renovation of the property to be suitable for HMO licensing and usage, and the other funds the purchase and renovation. The rent income (after all expenses) is split 50/50. This type of joint venture partnership is a longer-term commitment. Deciding an exit strategy is vital when considering a joint venture partnership.

What about when things don’t go to plan…

If you decide on an exit strategy, for example, buy to sell, but you can’t sell the property or don’t receive an offer that you (or your joint venture partner) see as acceptable, what do you do? It’s essential to document the plan for the ‘what ifs’ in your joint venture contract before starting out. Discussing these things early on will make decisions easier down the line if the worst is to happen, and you both have it written down in black and white. Say the market changes during a buy to sell project, consider what price you are happy to accept for the property to break even. Consider how long you’re comfortable leaving the property on the market, whether you’d consider an auction sale after a specified period of time, and what you would do if you made a loss.

It’s not always plane sailing. There is always an element of risk in the property market, just like any other investment method. One of our fond property friends comes to mind when we write up joint venture contracts, as they always say ‘cover the five D’s’. The five D’s are departure, disaster, death, divorce, and disagreement. Discussing the five D’s and acknowledging what to do in worst-case scenarios will put you in good stead for a successful joint venture. 

Investing in Property

We make property investing simple for people who want to benefit from high-quality property investments without investing their own time or resources. Our investors can benefit from a passive income on a fixed term, backed by a brick and mortar asset and a team of experienced property investment professionals.

Are you interested in finding out more?

Download our investor brochure by clicking the button below.

Joint Ventures: Basic Principles

Joint ventures are well known in the business world, but many are a little unsure about what joint ventures involve when it comes to property investing. Today I am going to outline some basic principles of joint ventures in property, including what makes a joint venture successful and how to cover all eventualities.

In the property market, a joint venture is a temporary but formalised partnership of two or more individuals, which contract with each other for a particular development project, such as a buy-to-sell project, often through the creation of a temporary subsidiary company called a Special Purpose Vehicle (SPV).

Creating a joint venture partnership for a specific property project can be a great way to work with other professionals or investors in the industry. Joint ventures, in our opinion, work best when two (or more) parties come together to work on a project where their skills complement each other. The way we like to think of it is: you don’t want two (or more) investors working on the same project with little experience of project managing, and likewise, you don’t want two hands-on individuals coming together with no way of funding the project.

A successful joint venture partnership works well in property when the individuals involved have skills that complement each other. This could be where one individual organises the funding for the project and oversees payments, while the other finds the project and manages the refurbishment from start to finish. Alternatively, it could be a partnership between an individual who can oversee the project and fund it, partnering with a builder or other tradesperson who will complete the refurbishment.

Not only can joint partnerships work well with two parties coming together with complementary skills to one another, but joint ventures can work well with more than two parties. We have met professionals in the industry that have multiple parties involved in a property project, where skills and expertise are brought from a wide range of professionals like architects, accountants, quantity surveyors and engineers.

You might be thinking “this all sounds great, but why would we consider joint venturing”. Let me explain some of the benefits.

For many individuals who want to invest in property, joint ventures can be a great way to get involved in a renovation project without going it alone. You can keep up to date with progress, be as hands-on or hands-off as you like depending on your workload and geographical location, and gain experience of what’s involved in a renovation project while working alongside someone with more expertise (and time) than yourself.

For property professionals, working in a joint venture partnership can be a way to expand their knowledge of different aspects of property, and allow working with new professionals in the industry. In certain circumstances, it can be a great way to work with an investor who can fully fund the renovation to get a project off the ground.

Depending on the joint venture partnership agreement, investors can often achieve higher returns on their investment than loaning money to a property company for a fixed return. At Nichol Smith Investments, we believe that joint venture partnerships are where each partner is equal. With this in mind, previous joint venture partnerships we have worked on with investors or other property professionals have resulted in a 50/50 split of profits. This allows us to work on more projects throughout the year while achieving great returns for our investors. And of course, having fun at the same time.

We hope this blog has helped explain the basic principles of what a joint venture partnership can involve in property, and why they can be a great way to gain experience in property and achieve good returns at the same time. Last week we touched on the recent changes the Financial Conduct Authority made to investors working in property. If you missed this article, it’s well worth a read if you’re considering joint ventures in property.

Next week we are continuing the theme of joint ventures, and we will take a more in-depth look into what a joint venture agreement should include. 

Interested in Investing in Property?

We make property investing simple for people who want to benefit from high-quality property investments without investing their own time or resources. Our investors can benefit from a passive income on a fixed term, backed by a brick and mortar asset and a team of experienced property investment professionals.

Download our investor brochure by clicking the button below.