At The Money Centre we understand that there's more to property investment than finding the right mortgage. The key to successful investment is to develop a strategy which maximizes the returns on your property; without having to sell. Our consultants look beyond interest rates to find mortgage products that are tailored to your individual needs. After all, we want your property portfolio to grow as much as you do.
Let's suppose that you have £100,000 to invest in the buy-to-let market. If we assume that the housing market grows at 5% a year; you're looking at an annual return of £5,000. Not bad, but there are other options open to you.
With just £15,000 you can buy a buy-to-let property for £100,000 (a mortgage of £85,000). If you receive enough rent to cover interest payments and management costs, and the market grows at the same rate, you still make £5,000. However as you have invested just £15,000; that's a return of 33%.
A savvy investor wouldn't stop there. By purchasing additional properties you increase potential returns and spread any risk. Say you bought a total of five properties, each with a deposit of £15,000 and each worth £100,000. You still have £25,000 to cover buying costs (such as solicitors' fees and stamp duty) and there's money to draw should anything unforeseen happen. Now you have a property portfolio worth £500,000, which at 5% growth, which means an annual profit of £25,000.
The Money Centre knows the secret is to tailor a mortgage package to your individual needs. With literally hundreds of years of consultancy experience to draw on; we are confident that we can find the right product for you.
