There are many types of buy-to-let strategies, all with pros & cons for the investor. We have a concept that has been performing consistently for many years for our clients.
This means we can promise there will be no hard sell, just honest advice gained over more than 20 years of acquiring and managing high quality buy to let portfolios on behalf of our clients.
Read more about our Buy to Let concept…
The Buy to Let Concept
If you’ve got capital to invest, you’ve probably been considering buy to let property as an option.
But how does it work?
For me, buy to let is a medium-to-long term investment.
As a starting point, there are two ways to approach it.
The first is the way most people think of buy to let. You buy a property outright and take the net rent as an income.
There is another way
It’s to buy a property with a 25% to 30% cash deposit and an interest only mortgage.
Fast forward 10 to 20 years. During that time, the property has been paying for itself and possibly provided a small net income.
Crucially, it’s also seen capital appreciation. (Broadly speaking, property prices have increased by 6% a year since the early 1980s.[1])
This capital appreciation on the property is yours to do what you want with.
Let me give you an example:
A client of mine bought a property in 2002 for £69,500. In 2017, she re-mortgaged it for £185,000. She used £80,000 of the re-mortgage as two £40,000 deposits to buy two more properties, bringing her portfolio to three properties with a capital value of over £540,000 and a net cash flow of over £800 a month.
When the time comes for her to retire, she’ll sell one of the properties and use the proceeds to buy the other two outright.
She’ll then have two mortgage-free properties with a steady income stream to help fund her retirement.
My priority is to build mutually profitable business relationships, not make a quick buck. So if you’ve been considering buy to let as an investment option, drop me a line.
You can call me on 07730 797406 or email me at ian@aspirelettings.co.uk.
[1] https://www.ukvalueinvestor.com/2018/06/uk-shares-uk-property-better-value.html/
