A United Kingdom (UK) property investment firm, Baron & Cabot, has urged Nigerians to invest in UK real estate, adding that such investment is by far the safest investment option that guarantees higher returns against global inflation.
The company said investment in UK properties offers a great alternative to the practice of converting their cash to dollars as it is the practice among many Africans.
Baron & Cabot’s Managing Director, Mark Pearson, gave this charge during a familiarisation of the brand with the media on its operations in Nigeria.
The company which recently established its base in Kenya and Nigeria has for the past three years been servicing the Nigerian market by guiding clients from Nigeria to owning properties in the UK.
Pearson asserted that the qualities that stand them above other property firms are client relationship, client education on investment in the UK, building cash flows for clients and ensuring that clients have full ownership of their properties.
He said, “In a country like Nigeria with high inflation, heavy inflation that does not encourage investment at home, the people are very proactive in moving money to dollars or pounds, even before we came because it was safe.
“So we looked at the fact that they were doing that, and we said, look, we have another route you could actually make higher returns on your money and investment on, plus you are able to use the mortgage.”
He further noted that Nigerians often see the UK as their second home, urging them to invest in the country’s safe market under the wise counsel of Baron & Cabot.
“We do a lot more with the client. We are the only company that does the full training process with the client. Normally, what will happen is, if you contact someone in England about trying to sell your property, what they tell you is buy this, but we don’t do that.
“We have got 4,000 property investments. So what we do is we educate the client about investing in the UK, the landscape, and what areas in England suit best for that individual. Then we look at the individual properties and build their cash flow so they can know their exact cash flow.
“We are the biggest Nigerian investor in the UK. By far, the biggest company in the world investing in property in the UK. And part of that is because we do the whole process. We have lawyers, five different lawyers who are all accustomed to Nigerians and the way money has to be moved from the country.
“We are the only company that has mortgages for Nigerians and Nigerian clients, and we are able to get these mortgages and their deeds on your name which is very important and not on the mortgage name, which means that you are miles more protected,” Pearson added.
Speaking also during the interactive session was the Head of Sales, James Walsh, who revealed that oftentimes, people always ask him if they can buy UK properties without being in the UK and if they can get mortgages.
“People don’t actually believe they can buy properties in the UK. They are always ‘I am in Nigeria, how can I buy property in the UK?’ We guide them through the process. We can be hands-on as much as people want us to be.
“The second question is: can I get a mortgage? Yes! You can get a mortgage. We help people buy properties, get mortgages with very low-interest rates that appeal to most people’s purchasing power and make for an exciting investment,” Walsh said.
“So we have got all these regulations going, plus then, we have got the investment properties insured. So your property is secured. Plus also, the mortgage company is investing with you, so they are checking as well.
“They are not going to put money down on a property that does not exist. So you have got massive layers of regulations in place. For Nigerian clients, it is all about speaking to us to have them understand these things. We can show them all these before they even get to part away with their money.”
Pearson, however, stated that the budget for property investment ranges from low-level property price to multi-million prices that offer the glamour properties in eyebrow areas where the elites in the UK reside.
Speaking further on the lucrative side of the UK property market, Pearson described it as massive, especially its immunity against inflation while noting the days of loss of returns on investment as a result of global inflation is over.
“The UK property market is massive. It is a very safe investment space. A lot of people don’t realise the returns. The first thing you need to do is look at returns not just in themselves but against inflation.
“Because we have got clients in Nigeria who have done investments in the country, and after three years that they get their money, when they convert their money to dollars or pounds, they have actually lost money. So we have taken into account inflation.
“We are not saying don’t invest in Nigeria, no, not at all, we are just giving alternatives as well. And because we can use the mortgage to leverage the property, you are looking at a 14% return on investment per year and in a very safe market. So for most clients, when they realise the process, and how easier it is for Nigerians and the return they will get against inflation, it starts to stack up well for them,” he said.
Speaking on the transparency of the firm in its dealings with clients and ensuring what is promised to them is what they get to have, Pearson, said that the regulations in the UK are ones that are systematised, making any act of fraud impossible.
He also stated that the firm has Nigerian lawyers to work with clients from Nigeria, not to forget the various insurance policies they also have running against loss for the clients.
“We have been doing this for years. And behind the scenes, we have built hundreds of Nigerian clients living in Nigeria. These are existing clients. These are people we are already working with. So, what we have learnt is that in Lagos for example, we are finding an investment community where clients find each other and grow so big within the oil and gas firms.
“For example, the major oil and gas companies, we have dealt with hundreds of clients in this company, therefore, they could always speak with each other, those who have been on the property. So, that is one on the general emotional level.
“On a tangible level, England is voted the number one transparent country for property investment in the world. The reason being that there are so many regulations, so much you have to go through. For instance, before I or a developer takes your money off you, there are about four weeks of lawyers, cross-checking everything.
“These lawyers are independent of us, we can’t pick you a lawyer. So we got independent lawyers because they check on us as well. So the lawyers ensure indemnity insurance, which means that if they make a mistake, you get your money back.
“Now because of that, we don’t just have the government regulating them, we also have the insurance companies checking on them because they don’t want to pay out big deals.
“So we have got all these regulations going, plus then, we have got the investment properties insured. So your property is secured. Plus also, the mortgage company is investing with you, so they are checking as well.
“They are not going to put money down on a property that does not exist. So you have got massive layers of regulations in place. For Nigerian clients, it is all about speaking to us to have them understand these things. We can show them all these before they even get to part away with their money.”
Pearson, however, stated that the budget for property investment ranges from low-level property prices to multi-million prices that offer glamour properties in highbrow areas where the elites in the UK reside.