MORE ABOUT Property Wealth

Residential Property for Investment - The Facts !

Over the past 35 years property prices have risen by an average 11.74% per annum according to the office of the deputy prime minister's web site published figures.

The centre of economic & business research (CEBR) have predicted an average annual house price rise of 6.24% between the years 2002 and 2020.

Over the past 50 years, UK house prices have doubled every 7 years.

Since 1970 there have only been 4 annual price falls in the housing market, the biggest being just 3.8% in 1992 (when interest rates were circa 14%)

There is a national housing shortage in The UK and The Government are now offering certain tax breaks to Private Landlords in return for helping to provide extra accomodation to an increasing rental market/population.

The UK is but a small island, when compared to the land mass of the rest of the world; once our land is used up, there simply is no more. LAND is our raw commodity !

Do YOU have £100,000 (usable) equity in your home ?

If so, what's it doing for you right now ? (probably nothing).

If you have more than 5 to 10 years remaining on your residential mortgage, have you ever considered the affects of "borrowing" this £100,000 and really getting it to work for you ?

Here's a basic example*, using investment property and buy-to-let mortgages:-

With your £100,000, purchase 5 investment properties at £100,000 each;

Use £15,000 for deposits plus £5,000 for fees, cashflow and maintanence for each property;

Structure 85% buy-to-let mortgages on each property;

Get Letting Agent to house suitable tenants in each;

Hold on to your £500,000 property portfolio until such a time when it's value has risen by 20% (historically, easily within 5 years) and re-finance the buy-to-let mortgages, pulling out the £100,000 "borrowed" from your main residence.

The result = the £100,000 "borrowed" from your own home has now been put back, but has been leveraged to cash in on house price growth. If house prices doubled over a 10 year period, after re-finance, you could have an investment property portfolio of £1m with gross equity, after mortgages, of £475,000. This means that the £100,000 would have earned you the equivalent of £47,500 per year over 10 years............ How much do you currently earn in your main profession ?!! 

*This is just a basic example. Proper advice should be sought before investing in residential property for the first time.

Please note Buy to Let mortgages are not regulated by the Financial Services Authority.

We suggest that you contact us for a more detailed personal appraisal of your circumstances before entering into the investment portfolio market place.