What is property Sourcing?

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Property sourcing is a term used when a person or company instructs another business to find a high yielding investment property on their behalf that they would not have been able to find their selves. They may not be able to find it themselves due to lack of contacts, market knowledge and time, amongst other things. They also might simply, just not want to and therefore outsource to a company with the expertise and time to do it for them.
A property sourcing agent is someone who secures property deals which they then sell to property investors. The role of a property sourcing agent is to act as a middleman between the buyer and the seller, helping to smooth the deal out, making it a better experience for both parties. Working with property sourcing agents is a great way to grow your portfolio at a faster rate than maybe going alone. There is always a fee involved to pay the sourcing company for the service they have provided and this will vary from company to company and depend on the size of the property deal. If you are interested in our property sourcing service get in contact now

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How long does the property sourcing process take?

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The average deal takes around 4 months from when we begin sourcing for you. We actively generate a steady stream of opportunities throughout the year, but they never last for long for long! The best way to keep up to date with our latest deals as soon as they are secured it so sign up to our mailing list today. That way, when a suitable property is available, you’ll be first to hear.

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Are you able to find tenants?

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We cannot directly find tenants for you, however, we have a good network of successful letting agents that we can introduce you to. We only recommend property letting agents that we know and trust and have used ourselves.

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What is the difference between an ‘estate agent’ and a ‘property sourcing agent’?

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An estate agent works with the seller, and their fees are based on selling at the highest price possible, whereas a sourcing agent works with the investor/buyer’s interests by negotiating the lowest purchase price. They are negotiating on your behalf. An estate agent’s loyalty will always naturally lie with the seller and a sourcing agent’s will always be to their investor client.

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Can you help with my mortgage application?

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We are not mortgage brokers, however, we have a good network of reliable brokers that we can introduce you to. We only recommend mortgage brokers that we know and trust and have used ourselves. Broker fees can vary in price. It is good to establish the differences in costs from the very start of the property purchasing process.

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Can I use my own solicitor or builders?

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Yes, you are more than welcome to use your own solicitors and builders. We have recommendations to our own team members available should you require them. If you already have your own solicitor and builder, and you are happy with their services - that’s fantastic. If, for example, you don’t have a mortgage broker or surveyor, then let us know, we are always more than happy to help guide and advise you. If you do not need recommendations or project management, we can simply source you the property without any additional services involved.

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What is rental yield?

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Rental yields are percentage figures which indicate the type of returns you will make on your buy to let investment. Identifying your rental yield is a key part of any property investment strategy and you must know this figure when reviewing and comparing different properties.

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What kind of yields can I expect?

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Yields can vary, depending on where and what type of property you buy. Contrary to what many people think when they think about investing in property in the UK, London actually offers some of the lowest property rental yields in the UK. Regional cities in the north of England offer better rental yields in the UK, regularly above 8%. All of the properties within our portfolio in Liverpool currently offer yields upwards of 10%.

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Do I need to do my own due diligence?

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You are expected to conduct your own due diligence and make your own judgement on any property being offered. You must verify the information and any speculative information offered by us. You are expected to perform your own financial and legal assessment of any opportunity prior to making any commitment to purchase a property.

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What makes a property sourcer fully compliant?

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Winova Property Sourcing Limited is a fully compliant property sourcing company which means we have professional accountability. We are registered with the Property Ombudsman, ICO, Anti-Money Laundering with HMRC and are fully insured with Hiscox to carry out this work on your behalf. If a property sourcing company cannot show you proof of all of these items, they might be operating illegally and unprofessionally and are probably not people you want to work with. Every sourcing agent should have their own contracts which outline their own unique terms and conditions.

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What does BMV mean?

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Below Market Value ( BMV) properties are residential properties available for sell at a price below their actual market value. This is usually because the owners of such property need to sell their property very quickly. In most cases, the sellers will sell their property below market value because they are faced with some kind of financial difficulty. In some cases, they may be facing repossession. Some people sell their property below market value due to a divorce or because they are relocating; there are such a broad variety of reasons why someone might want to quickly sell their home. Selling a home below market value means the owner can dispose of their property quickly, without going through a complicated and lengthy process. Speed is usually their priority.

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Why use a property sourcing agent to help find and secure BMV property deals?

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A key reason for working with a property sourcing team is that you benefit from access to the most lucrative properties that have not even reach Zoopla or Rightmove yet. This means the properties our clients have access to are pre-release deals – often not available to the public market.
We purchase properties in Liverpool and the North West on a regular basis. We have strong relationships with local estate agents and letting agents where we know and trust each other and have worked together for many years. This gives us excellent buying power and therefore availability to below market value properties in Liverpool. Most importantly, we know what a good property deal looks like and it is our goal to help you secure these deals to help you grow your own property portfolio.

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What is a HMO?

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A house in multiple occupation (HMO) is a property rented out by at least 3 people who are not from 1 ‘household’ (for example a family) but share facilities like the bathroom and kitchen. It’s sometimes called a ‘house share’. If you want to rent out your property as a house in multiple occupation in England or Wales you must contact your council to check if you need a licence. Renting out a property by the room tends to generate more revenue than letting it as a whole.
You must have a licence if you’re renting out a large HMO in England or Wales. Your property is defined as a large HMO if all of the following apply:
1. It is rented to 5 or more people who form more than 1 household 2. Some or all tenants share toilet, bathroom or kitchen facilities 3. At least 1 tenant pays rent (or their employer pays it for them)

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What is a single let property?

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A Single Let is where you own a house that you let out to one tenant. The one tenant might be family or an individual. They are often considered to be less work and hassle than a house which is rented out room by room (HMO). As a landlord, you are responsible for looking after the property and making sure everything works. This is as well as paying the ground rent and service charge, if it is a leasehold property. The tenant is responsible for paying all of the utility bills such as water, gas, electric, broadband internet, TV licence and council tax - plus their own personal contents insurance.

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Why invest in Liverpool?

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Liverpool wasn’t always the thriving city it is today.

The 1970s and 1980s brought economic difficulties in all of Britain, but prominently so in Liverpool. It had some of the highest unemployment rates in the country, tons of factory closings and thousands of people leaving the city.

The mid-1990s finally saw some turnaround, with a drastic economic revival coming from billions of pounds spent on improving the city, attracting jobs and increasing tourism.

The Liverpool economy is still rapidly improving, as it is considered one of the fastest-growing cities in the UK.

Below are some of the efforts Liverpool has taken to become the city it is today: Regeneration Efforts

Liverpool has been going through a ton of regeneration efforts to upgrade the city drastically.

As these projects are completed over the next several years, property values are sure to rise to reflect these improvements and the rising demand to live there.

Here are some of the regeneration projects occurring.

Better Roads

Liverpool will be spending £500 million on improving its roads.

Their goal is to improve key routes that are in poor condition and have lots of traffic.

This project will likely cause some disruptions in the short term but will have considerable benefits in the long run.

The Anfield Project

Anfield is where Liverpool FC plays, and the stadium and surrounding areas are undergoing a significant renovation.

The project has been going on since 2012 and is headed by a partnership of Liverpool City Council, Liverpool Football Club and Your Housing Group.

The project seeks to create an attractive environment around Anfield by:

• Adding new and refurbished housing
• Expanding the stadium
• Developing a new public square with retail and commercial premises
• Revitalizing high street

Water Regeneration

Liverpool has some beautiful waterfronts, and Liverpool Waters is going through a massive regeneration project.

Liverpool Waters will see 60 hectares of historic dockland regenerated, creating a £5.5 billion world-class, high quality, mixed-use development.

This will provide 1.5 million square meters of floor space, encouraging a significant increase in Liverpool’s cultural and business offerings.

It’s a 30-year project that is a major part of Peel Investments’ £50billion ‘Ocean Gateway’ project to regenerate its land and assets fronting the Manchester Ship Canal and the River Mersey.

The site is also adjacent to Ten Streets Creativity District, which is revitalizing historic docklands over the next 15-20 years.

The Liverpool Knowledge Quarter

The Liverpool Knowledge Quarter is an area that contains the city region’s key partners, creating an environment that inspires innovation in science, technology, education, health, and culture, among other fields.

It seeks to support the growth of new innovative businesses and promote programs that invest in research and its 54,000 students.

There are already £1billion of new developments underway, one being the Paddington Village expansion site, which includes facilities such as RCP North, Rutherford Cancer Centre and Liverpool International College.

Liverpool One

Liverpool One is a massive £960 million shopping centre built in 2008.

It has more than 170 shops, bars and restaurants spread across five districts in the hear of Liverpool City Centre.

Millions of people visit Liverpool One, and it is a big tourist attraction.

Capital of Culture 2008

In 2003, Liverpool won the right to be named Capital of Culture for the year 2008.

They spent five years planning events that left a lasting impact on the city.

Some of the events were:

• Liverpool The Musical
• Holocaust Memorial Day
• British Dance Edition
• Three Sisters On Hope Street
• Viennese Balls
• Art in the Age of Steam
• Fragrant Liverpool
• Streets Ahead
• Liverpool Sound Concert
• Streetwaves
• The Open Golf Championship
• Carnival Weekend
• World Firefighter Games

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What does a high rental yield mean?

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Rental yield is a measure of how much cash an income-generating asset produces each year as a percentage of that asset's value.

So for real estate, the rent yield is the rental income as a percentage of the property’s value.

How to calculate rental yield:

Property value: £800,000

Expected rent per month: £5,000

£5,000 x 12= £60,000 (annual rent income)

(£60,000 / £800,000) x 100= 7.5% rental yield

Ideally, rent yields are around 7% or 8%

Liverpool has some of the best rental yields in the country.

Liverpool’s average rental yield is around 5%, which is far better than cities like London (3.05%0 and Southampton (3.55%).

Some of the best postcodes in Liverpool as of 2020 are:

• L1 - 10%
• L11 - 8.67%
• L6 - 8.12%
• L2 - 7.56%
• L3 - 7.40%
• L4 - 7.13%

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How does Tourism & The Student Population impact investment?

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Liverpool has a huge student population, with about 70,000 students.

This means a significant portion of that population will be looking for housing, especially rentals, which is something you can take advantage of.

A large student population also usually means that bars, restaurants and clubs will be thriving in nearby areas, which can help the property value.

With Liverpool’s regeneration efforts, tourism has been increasing in Liverpool and improving the economy.

As of 2019, the tourism economy was worth over £4.9 billion, which is 400 million more than 2018’s all-time high.

And in 2018, 67.3 million visitors came to the region, which brings in a ton of money for the city and supports over 57,000 jobs.

Liverpool also has tons of tourist attractions, such as:

• Albert dock

• The Beatles Story (and tours for Beatles landmarks)

• Pier Head

• Liverpool FC

• St. George’s Hall

• Cathedrals

• Museums

• Waterfronts

This all combines to help Liverpool’s economy, which is great for property values.

You can also take advantage of this tourism by renting out property Airbnb style.

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Have jobs increased in the local area?

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Jobs have been on the rise in other areas besides tourism as well.

The tech sector has had huge expansions, and 11,451 new businesses started up in 2018.

Things look good for the future as well, with reports predicting that 11,600 new jobs will be created over the next three years.

This all bodes well for the economy, and the demand for housing will increase, which is great for investing.

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