Property Investment Services

Why invest in property?

We all invest in property to make money; to provide a better life for ourselves and our families, to give us a bigger pension pot or just to generate more income.

At NGU Homes, we are experienced investors in the North East (we own over 150 properties and have sourced over 400 for our investors) so if you want to deal with a company that lives, breathes, and sleeps property you’ve come to the right place. It is our number one goal to find you a property that generates income and increases in value to provide you with a better life.

We aim to offer a one-stop shop to our investors, helping them to purchase, manage, refurbish, and sell property under one roof.

10 Guiding Principles of Successful Property Investments

1. Start With Your Goals: Why Do You Want to Invest in Property?

Successful property investment begins with clarity about your goals. What does success look like for you? Investors typically fall into two categories:

1. Secondary Income:

   • Aiming for better returns than savings accounts.
   • Property offers 8%-30% returns compared to a bank’s 3%.
   • Use it as a pension source or to supplement your current income.

2. Financial Freedom:

   • Replacing your primary income.
   • Enjoy financial independence and the ability to travel or spend time with loved ones.

2. What’s Your Property Investment Strategy?

Before seeking deals, identify your strategy. Factors to consider:

Risk:

• Understand and build a portfolio based on your risk tolerance.

Risk Tolerance by Property Value:

• Low-value properties (£20K-£90K): Great for first-time investors but limited capital growth potential. Strategies: Rent, refurbish and add value.
• Medium-value properties (£90K-£150K): Best for stable growth and flexible strategies like HMOs or renovations.
• High-value properties (£150K+): High-demand areas with potential for significant capital growth. Ideal for experienced investors.

Initial Capital Investment:

Your budget determines the strategies you can pursue. Ask yourself:

• How long will you hold the property?
• Who’s your target tenant or buyer?
• Is the strategy cash-positive?

3. Four Proven Property Strategies

1. House in Multiple Occupation (HMO):
   • Investment: £60K-£120K. Profit: £1,000-£1,500/month.
2. Buy, Refurbish & Add Value:
   • Investment: £40K-£70K. Profit: £350-£500/month.
3. Rock Solid Rentals:
   • Investment: £15K-£40K. Minimal renovation needed. Profit: £350-£500/month.
4. Rent from Day One:
   • Investment: £10K-£25K. Buy properties with sitting tenants. Profit: £350-£500/month.
   
   

4. Accelerate Your Investment with Buy, Refurbish & Add Value

Example:

• Purchase price: £90,000
• Deposit: £22,500
• Monthly profit: £500
• Annual ROI: 27%

Refinance after refurbishment to recycle your investment capital.

• Refurb cost: £20,000
• Value after refurb: £135,000
• Expected rent: £800pcm

5. Focus on Prime Locations

We analyse postcodes monthly to ensure high-demand areas match your strategy.

6. Remove Emotion—Invest with Numbers

Use our DEAL MACHINE to systemize decisions and ensure your investments align with your goals.

7. The Slip Point Principle: The Small Difference That Makes You a Successful Investor

Property investment involves risk, but smart decisions can minimize it. The Slip Point Principle is about understanding what separates successful investors from amateurs.

Little Money Left In vs. No Money Left In

When using the Buy, Refurb & Add Value strategy:

1. Little Money Left In:

   • Expect to leave 10%-25% of your money in the property.
   • Works well in good areas with long-term growth potential.

2. No Money Left In:

   • You might recover all your money in low-value properties.
   • But these are often in poor areas with fewer buyers, lower demand and higher risks.
   • Think: Is it worth investing in a bad area?

Avoid Poor Locations

Low-value properties in investor-only areas may seem attractive with high rental yields, but they come with big downsides:

• Empty periods (no rent).
• Problematic tenants.
• Low long-term growth because fewer people want to buy there.

8. Armchair Service for Hands-Off Investors

• Refurbishments managed by NGU Property Refurbishments.
• Tenant management by NGU Homes.
• Enjoy passive income while we handle the details.

9. Proven Systems for Success

We provide:

• Project management tools for refurbishments:
  https://nguhomes.co.uk/refurbishment-services
• Award-winning tenant management with NGU Homes:
  https://nguhomes.co.uk/landlords
• Exit strategies with NGU
  https://nguhomes.co.uk/selling-property

10. Learn From Success Stories

Find out who we are:

YPN ARTICLE.pdf