Sunday, 7 July 2013

5 Reasons why LEVERAGE is the KEY to Success in Property Investment

1. YOUR ASSET PURCHASE: The way you buy property as an asset by using a deposit rather than the full value is known as gearing which means you are buying an asset often worth 5 times more than the deposit. Which means 5% growth of the asset is worth considerably more than 5% growth of a similar investment where 100% of your money IS the investment. For example £50,000 deposit will buy a property worth £250,000 using 20% as the deposit requirement - so 5% growth represents £12,500. Compare this with £50,000 in a bond which @5% represents £2500. A property therefore is leveraging your money and gaining the investor 5 times more return.

2. YOUR MORTGAGE RESEARCH: An independent mortgage broker has expertise , experience and tools which allow them to research the whole of market to find you the best deals. They are not tied to a product like a bank adviser and are not going to hoodwink you with loss-leading headline rates like the internet comparison sites. Instead they are going to understand your goals, find the best deals on the market and succeed in your application - cutting down all the hassle, time and give you peace of mind. This is leveraging all of those years of experience they have, their established relationships with the major lenders to get applications through successfully and also by gaining access to their software which analyses the market place, providing instant access to the optimum products. If you don't have the time or experience - then why bother trying to do this on your own? How do you think you would compare to the experts trying this on your own?

3. YOUR ANNUAL COSTS: Getting advice from a chartered accountant will help you mitigate your tax liabilities. Again by leverage their expertise you will be spared the sweat of keeping up to date with budget and legislation changes affecting your liabilities and allowances. They will help you keep good books ready for your tax return and they will also produce your personal tax return saving you money and keeping you legal. This kind of leverage gives you your time back, some of your money back and most importantly, peace of mind.

4. YOUR BUY PRICE: You can turn a decent profit from day one with your property purchase - so use a property sourcing agent who can demonstrate a genuine discount to market value - you should make sure they are a reputable agent with a track record and plenty of happy customers to provide testimonials. The agent should provide a RICS valuation, at least 3 comparables and evidence of a purchase of a similar property. If you are looking at a new build in a block then you should be told how many have been sold to other investors, because on completion, you cant be competing with other landlords to find your tenants. You can therefore leverage the sourcing agents time and experience to find you a good property and lock you in a profit from day one.

5. YOUR RENTS ACHIEVED: Finding good tenants quickly can be done by leveraging multiple agents in the property area. Their combined tenant databases will ensure you are getting blanket coverage when they market your property. You should tell them you are instructing multiple agents so they compete with one another and keep them hungry for business.

So there are 5 reasons why leverage is going to help you succeed in property and give you more money, more spare time and more peace of mind knowing the asset, the expert advice and the mutli-agent method will increase your chances of success.

I hope you found this blog useful and informative. Please feel free to contact any one of our team for some free advice on your property issues.

Until Next Time



  1. Real Estate Investment is a tough business to handle. A business that needs your whole attention to be successful. But now, there are agents who can help you manage your business. Its about time to get their services for your business.

  2. I have enjoyed reading your articles. It is well written. It looks like you spend a large amount of
    time and effort in writing the blog. I am appreciating your effort. George offers Property leveraging opportunities and teaching Commercial to Residential Conversion.


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