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
Robin
