How to Invest in Property

How does Property Investment Work?

Think of it this way – if you have £20,000 to invest, and you put it into a savings account or into shares, then you’ll make a return on that £20,000 – no more, and no less.

If you use the £20,000 to raise an £80,000 mortgage and purchase a property worth £100,000 then you’ll making a return on the whole £100,000 – and in the meantime you have the rental income (becuase it's a buy to let property) to pay the mortgage each month. So if savings rates or stock market growth are running at 5% pa, and property prices are increasing at 5% pa, you’ll STILL get five times more return on your money with a single property investment.

BUT this is only how the story goes with a ‘traditional’ investment property – buying through 1st Asset is even better!

When you buy through 1st Asset, we negotiate a discount on the purchase price of your property – typically of 15% of the purchase price. This means that to raise an 80% mortgage, you only need to put in the other 5% . On the hypothetical example above, this would be just £5,000 of your investment fund is needed to buy your first property – leaving the remaining £15,000 to buy another three. So instead of owning a meagre £20,000 worth of stocks & shares, you could be reaping the rewards on a £400,000 property portfolio!

Now remembering that you’ll still need to settle-up the acquisition-costs (solicitors, stamp duty, mortgage fees) and that a sensible investor always leaves a ‘slush-fund’, that is still a truly astonishing return on your investment.

To find out how we can help you, please call us now on 020 7014 3800.