Xerendipity Property Management will let you step inside a world of billionaires’ strategies for buying their homes
Earlier this year, one of the most important mortgage broker in London arranged the financing for a Arabian client who was buying a home in London for 10 MLN pounds, putting down no money whatsoever as a deposit.
Financial strategy he used for was simple: he used existing assets such as individual shares in addition to the property itself to guarantee the mortgage.
But not limited to, he arranged the mortgage with a 1 per cent interest rate!
In London all the homeowners knows that these terms are considered "too good to be true”.
So, the money saved can then be shuffled around the world in search of the best tax deal and the biggest investment gains.
With annual net income over 300,000 pounds or net assets over 3 MLN pounds, Xerendipity Management’s clients enjoy a wider range of options than other UK Real Estate Management customers.
Borrowing the money and buying in London brings huge benefits.
Many are resident non-doms (RNDs), meaning they live in the UK but declare their domicile elsewhere so are not taxed on money earned outside the country, so long as they don’t bring it in.
It’s a no-brainer, borrowing means your money is working in two different places to generate wealth.
You own the house in London, which may increase in value, and you also invest the money offshore.
For a HNW and UHNW individual, the combined value of multiple home loans can extend to the hundreds of millions, with international private banks typically lending the money.
Often they clear the borrowing quicker than a high street bank would, helping clients snap up a bargain.
Borrowing means you own the house in London and you also invest the money offshore
Those who offer home finance, or arrange it, pursue potential clients at trade fairs, where the very wealthy shop for Super Yachts or Private Jets, or events where they enjoy their pastimes.
Xerendipity Management, who also arranges finance for yachts and jet purchases, has collected up to 200 MLN pounds of leads through PR in the Monaco Yacht Show.
Xerendipity Management is also a regular at Geneva’s European Business Aviation Convention and Exhibition.
Classic and supercar events such as the UK’s Salon Privé at Blenheim Palace and the Goodwood Revival are also popular mixing grounds, as is the Paddock Club VIP access at the world’s Formula 1 races.
Private banks may host events at the World Economic Forum at Davos, luring current and prospective clients with celebrity speakers.
Financiers make sure they keep advisers to the Super-Rich, including Property Management firms, lawyers, accountants and tax advisers, up to date with what they can offer.
Xerendipity Property Management Staff visit Ultra-High Net Worth conventions to know the ultimate services on offer that could be of interest for our clients.
And, obviously, rich people talk!
Xerendipity increased the portfolio thanks to billionaires client that introduced us to the other Ultra-Wealthy individuals they knows… It’s a word-of-mouth Branding strategy at the end.
Everyone wants as much Loan-To-Value as they can get
Several UK high street banks will currently lend mortgages of up to 10 MLN pounds, but borrowers must be able to demonstrate clear historical income to show they can afford the repayments.
For sure, the high street banks have the lowest rates and fees, but they are criteria led and can't negotiating of the terms and lower flexibility.
The private banks look more at the bigger picture, such as retained profits in a business, private equity investments, a stock portfolio, or fine art.
This approach is for HNW and UHNW clients who can fulfil 90 per cent of lenders’ guidelines but also have a few exceptions: as a banker whose income grew exponentially last year so their two-year income average doesn’t reflect this.
Or they want to own their home through an LLC firm (limited liability company), or perhaps an ultra-rich who wants to keep his identity private.
The precise tax benefits associated with borrowing money to buy expensive homes vary from country to country.
As an example, in France and the UK, buying homes with borrowed money reduces the value of the home subject to inheritance tax.
And the mortgaged portion of a home’s value is exempt from France’s wealth Tax.
So, in these cases, Xerendipity Partners will advise our clients to buy homes entirely with borrowed money.
UK residents, including resident non-doms, are exempt from capital gains tax paid on their main UK home when they sell it.
Besides the tax benefits of basing in the UK, the prospect of home price increases is part of the appeal of buying a home.
10 MLN pounds is the maximum mortgage loan available from several UK high street banks
UK property provides an attractive investment environment for those seeking to save taxes.
Currently, it’s far too easy to hide who controls substantial residential assets behind corporate structures, often registered in one of Britain’s secretive offshore financial centres.
So, that’s why you must consider partnering with a Xerendipity Property Management.
Our expertise and comprehensive management solutions ensure that your property is well-maintained, legally compliant, financially sound, and strategically positioned in the market.
Preserve and enhance the value of your property… Value Your Time.
Francesco De Biase
Chairman BoD & C.E.O.
©Xerendipity Corporation Ltd.
©Xerendipity Corporation Ltd.