Hi,
It has been a busy year! We have had around 200 investors who have made around £5 million of equity from deals we have sourced this year in the UK!
Impressive eh?
We have seen many investors clean up so far in 2009, making between £100-200,000 in equity across various property deals, for as little as £6000 per deal.
How well have they set themselves up for life? I'd say pretty well - I don't know many people saving £100,000 in a year....
That is the power of investing in property, and getting strong leverage and good cashflow.
We have been sourcing properties for 5 years, and we have seen big changes in the property market over those 5 years!
Some have been good, some have been tough, but it has been a case of adapting to the changes in the various markets, and making the most of them.
So how have we seen the last five years? And how do we see the next year?
What have been the main changes we have seen in the UK?
Well the “credit crunch” in the UK, has had a big impact.
Previous buy to let mortgages were very easy to get, at 85% LTV on a self certified basis.
Now buy to let mortgages are currently at best 75% LTV of the purchase prices for existing properties, and 65% LTV on new build properties – and self certified mortgages are no more.
I think most people would agree that the lenders were far too irresponsible with some of the lending previously, you had people earning £20,000 per annum who were getting self certified mortgages up to £200,000 in value, with rental coverage of barely 100% - not a good deal for the lender or the borrower!
So this has restricted prices on new builds, and properties over £150,000 as they are far tougher to fit for buy to let purposes.
The end of the market we have always concentrated on, properties priced between £60-120,000 have seen some slowing of prices, as mortgages have also become tougher for first time buyers – with lenders again looking for borrowers to have some deposit to put down.
However rental yields have stayed strong.
So prices overall have dropped an average of 10-12%, with new build flats dropping around 20-25% from their peak – however on houses in particular prices have started to grow again – an average of 2-3% in the last 6 months according to most indicators.
This will continue into 2010, with values staying fairly flat, but most likely rising slightly over the 12 months – I would suggest around 2-4% as an average increase.
Read more on the above article on our website!
We source properties all around the UK – Scotland, N Ireland, Wales and most of England – and can assist with management of all the properties we source, giving you a complete package from point of reservation through getting the mortgage with one of our team of brokers, to getting all legals organized, through to management on completion!
We have re-opened our Portfolio Building Programme, which allows you to gain this sort of equity, and a positive monthly cashflow for very little money in!
We had been looking at all our options to offer investors a further "Armchair" style service that can help them carry on with their busy lives but also help kickstart their investing and build up some significant equity!
We have put together 2 basic packages for investors to sign up to, where perhaps you are too busy to check every deal for yourself or would like to make sure you are not left behind and actually achieve the goals you want to achieve!
Package 1
For just £23,999 + VAT, we will:
1. Choose you 4 properties with £80,000 equity within the next 6 months
2. Help with the full buying and management process
3. Go for positive cashflow properties
4. Give an excellent mix of properties!
Package 2
Or for £43,999 + VAT, we will:
1. Choose you 8 properties with £160,000 equity within the next 9 months
2. Help with the full buying and management process
3. Go for positive cashflow properties
4. Give an excellent mix of properties!
This allows you to build up a huge nest egg, or pension while you carry on with your busy lives, knowing you are going a long way to securing your financial future!
Let's look at the return on Investment
Invest £24,000 - buy 4 properties at an average of £80,000 (purely for this example) with £60,000 mortgage. Immediately turn £24,000 into £80,000. This includes all buying costs!
Let's say in 5 years time prices have risen just 2% per annum.
Each property is now worth approx £90,000. Your £24,000 is now worth £120,000, assuming a neutral cashflow (in reality would expect this to be positive).
So if you have a 5 year plan, can turn £24,000 into £120,000 ie sell properties at realistic prices of £90,000 each after buying costs.
Let's say you have a 10 year plan
Let's assume properties rise at say 3% per annum from years 5-10. Remember while 3% seems a low rate you have a highly leveraged property so your return is much higher.
So in another 5 years properties are at an average of £105,000. This adds another £60,000 onto your return.
So your £24,000 investment is now worth £180,000!
Powerful?
This shows the importance of buying just now and maximising your returns! And most importantly the importance of looking at your investment as a 5 or 10 year investment. Remember while prices may seem low just now, anyone that bought property 5 years ago should still be well up overall on their return on investment.
So if you don't have a pension but have some funds to invest, surely this shows what a huge opportunity there is right now in UK property
Turn £24,000 into £120,000 after 5 years or £180,000 after 10 years!
We have had 3 investors sign up in last week for this, and so have 7 remaining spaces currently - if you want to finish the year strongly contact us today - remember any properties reserved now, will most likely complete in January - giving you a big kickstart to the New Year, and setting you up strongly for a huge 2010!
Join 10,000 other investors working with us, on their property portfolios – you can call myself, or Daniel to discuss investing options on 0115 9853963, or drop us an email to service@propertysecrets.net and kick start your portfolio today!
Regards
Alan Fosyth
