Here are the answers to the most frequently asked questions. If you do not see what you are looking for, please email us at info@kuveraproperties.com
1. What sort of properties does Kuvera source?
We source newly built and off-plan properties because they require fewer repairs and less maintenance. Many of these properties can appreciate in value during the build time and the lower deposits needed to secure these properties means higher returns on your capital.
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2. Who buys the property?
You buy the property in your own name. Kuvera does not own a share of your property.
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3. Can I use a solicitor and mortgage broker of my choice?
Of course. But bear in mind that the analysis of each opportunity involves a team of independent professionals that includes mortgage brokers, solicitors and property negotiators. The properties will be pre-assessed to provide the best sources of finance and we recommend that you use our appointed professionals to ensure an efficient administration of each purchase.
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4. What are my options if I don’t have any money to invest?
If you own your own residence and/or buy-to-let properties, our recommended mortgage brokers can advise you on any potential equity release. Some off-plan deals only require an initial investment of just £10,000. We can also introduce you to lenders who will consider both the market value (say, £160,000) and the purchase price (say, £135,000). If you have a reasonable current financial profile, you may qualify for higher loan-to-value which means an even lower initial investment.
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5. How do I know that the discounts you have negotiated are true?
Naturally, this is the most common question we are asked. All valuations are undertaken by a member of the Royal Institute of Chartered Surveyors (RICS) or an overseas equivalent. Nobody can guarantee the value of a property but these valuations are recognised by whichever lender will be arranging the finance for your property. Our partners also investigate the realistic market values by talking to local estate agents. In England and Wales, individual property transactions are available through HM Land Registry which indicates the true market values and, in turn, the discounts we negotiate. Finally, a quick Internet search will reveal the public asking price for the development units.
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6. How accurate are Kuvera’s rental assessments?
This is a very important question. We strive to find investments where the rental income should cover the cost of the financing and, in many cases, also provide a surplus. With meticulous research of the area and by collating information received from several ARLA registered letting agents, we can report a pretty accurate picture of the local letting market. We call them realistic and achievable rents. For collaboration, you will also see a rental assessment in the valuation report prepared by the RICS surveyor for the lender, as they usually require the rental income to cover the finance cost by 100% to 120%. When you receive a report, use the realistic and achievable rent to assess the viability of the opportunity in terms of income and return.
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7. What happens if there is a crash or a fall in house prices?
You should always consider property as a mid to long-term investment opportunity. By buying property at a genuine discount through Kuvera, you will have instant equity and an immediate margin of safety. By gearing (obtaining the maximum available finance), your personal investment in a property is minimal. If a purchaser buys a property with a 15% discount, property prices would have to fall in excess of 15% for you to lose money in real terms. But historically, property doubles in value every 7 to 10 years and so any short term drop in value will be recovered over the longer term.
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8. How do I join Kuvera?
Come to one of our free workshops and find out more before you make a decision.
You can book your place here,
call (01) 640 1815 or e-mail us at info@kuveraproperties.com
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9. How much does it cost to become a Kuvera member?
The once off cost of membership is €1,000, payable only when you decide on a property.
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10. What is the typical price of a development?
We aim to keep our units below £150,000. This is a guideline only and we sometimes offer units above this price.
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11. What makes Kuvera different from other property investment companies?
- Kuvera is a highly ethical company that measures its success on our members' success
- We are the only company we know of that passes all of the negotiated savings on to our members. It seems everyone else is negotiating a discount and then adding on a sizeable margin in return
- If there are any doubts about a development, we will not recommend it to you - in fact we turn down over 80% of the developments we research because they do not meet our stringent criteria
- We work very closely with you to provide superior support
- We never encourage members to purchase property that is financially unsuitable
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12. How can I limit my risk to competition in new-build apartments?
In some new-build developments, a scenario called 'Investor Ghetto' can arise, where the entire complex is bought by investors. To avoid getting caught up in it, Kuvera focuses on:
- Smaller developments
- Areas that are not saturated with investors
- Areas where there is good rental demand
- Prices that fit the average person's lifestyle both to rent and to buy
- Regeneration areas
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13. Why would a developer want to sell at a discount?
When you exchange contracts, the developer can use these documents to gain further funding for other projects or to jump start the next phase of the development in which you are investing. A streamlined sale to our members also reduces or eliminates costs such as show homes, advertising / marketing campaigns, sales staff, extended fees for contracts and solicitor. The developer views it as a quick and easy sale and an excellent marketing tool for larger, phased developments i.e '1st Phase Completely Sold Out In 1 Day!'
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