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BUYING A ‘TURNKEY’ BUILDING INTENDED TO BE LET FOR A FAMILY

BUYING A ‘TURNKEY’ BUILDING INTENDED TO BE LET FOR A FAMILY

A Belgian family who wanted to make their first investment in a building intended for letting called on BuyerSide to assist them in the various stages of the acquisition process.

Clearly defined objectives and criteria
With a budget of around one million euros, this family had a very specific idea of what they wanted. One of the important points in their search concerned the neighbourhood and the quality of life that they could offer tenants, but they also wanted to pay particular attention to the liquidity of the product. So the aim was to combine comfort with a good rental return. Another important element for the future investors was to find a property that did not require any work. In fact, buying a property in need of renovation was not feasible given their professional and private commitments.

Optimal responsiveness
Just one week after the search began, a dossier was suggested to the client. It was a building intended for letting that was being renovated by the owner. In order to be able to take a decision quickly and prevent the property from being divided up and sold unit by unit, a visit had to be arranged very quickly. BuyerSide then began challenging negotiations with the seller: not only about the price, but also about the terms and conditions of the offer, given the particular nature of the dossier. This was a building that had to be handed over and accepted on a turnkey basis after renovation, within a certain deadline and on the basis of specifications to be validated. The family’s offer was accepted in just three days. A record time, given the difficulties that can be encountered when buying a building on a turnkey basis, which necessarily involves precise negotiations about the specifications/annex that are an essential part of the agreements. 

Long-term assistance
Once the offer had been accepted, BuyerSide followed up the work regularly in order to ensure compliance with the schedule and the specifications. Thanks to the team’s professionalism, the clients felt secure and supported. Despite a number of difficulties encountered during the course of the renovation work, which we dealt with successfully, the final result is definitely worth the effort. The rental process started smoothly in a virtually new property! The entire building was let in just a few weeks at rents higher than the estimates used in our valuation before the purchase. It yields a return of around 4.25% gross, deed in hand.