If you have £6000 currently, what is the best way to invest this?
- Put it in the bank - could be considered the safest by some! In 5 years time, will be lucky if that is worth around £600 - not very exciting, and not going to help your retirement.
- Invest in the stock market - lets say you beat the average and get 12% return per annum for 5 years. Your £6000 will be worth £10574 in 5 years time - not a bad return.
- Let's say you invest in a property with a huge amount of equity already built in!
The figures could look like this:
- Current RICS Valuation - £100,000
- We secure the property for £75,000
So your £6000, which includes your buying costs, immediately gives you £25,000 of equity. Then let's say the property goes up a very conservative 2% per annum for the next 5 years so in 5 years time the property is worth £110,408 - therefore if you sell the property in 5 years time for this figure - you will have turned your £6000 into £35,408 in 5 years!
Lets assume conservatively that all costs are covered for 5 years ie rents equal mortgages plus any ongoing costs.
I have been buying property for over 10 years - and you can see with the example above why right now is the best time to be buying, as many of our investors have seen!
What a great way to secure your financial future - and the great thing is you can make the bulk of the return on day one - and we have assumed a very conservative level of growth. You gain such a return by the huge discount our team of sourcers around the UK can source for you, and the well leverage investment.
This allows your investment to stretch further - if you buy 3-10 properties in this way, you can get a spectacular return!
So if you have been waiting on the sidelines, and are unsure how to set yourself up for the future, or have not pushed yourself enough, hopefully this gives you a clear idea why property investors make up the largest percentage of those on the Sunday Times Rich List!
We have many excellent examples of properties with exactly this sort of return ie
Example 1
Property Valued at £80,000 - secured from a distressed vendor at £60,000 - market rent £450 a month and £20,000 instant equity!
Example 2
Property Valued at £120,000 - secured from distressed developer at £90,000 - market rent of £550, and £30,000 instant equity!
For more information on the above, enter your full details with the subject '5 year plan' here and we'll get in touch with you direct. You can also register for new deals as they come in here
If you have any questions, on investing - remember we have a national team throughout the UK, and manage the buying process from start to finish, and then can organise ongoing management!
You can get more details by emailing Alan at service@propertysecrets.net or calling 0115 9853963.
