Why Invest?

Some of the most frequently asked questions we here are, “why should I invest my money in property?” and, “is it the right time to be investing in property?”  In our opinion now is a great time to look at property investment and through our deposit paid deals we can really help you maximise your potential.

Property investment is about making your money really work harder for you, there are many options for investment out there but it is property which has historically provided the best return on investment.  Why? Well listen up because here we go, let’s pretend you have £6,000 to invest wisely…

1. Put your £6,000 into the bank, it is safe and you can forget about it.  Get 6% interest over the year and by the end of the year you will have £6,360. Nice.
   
2. Put your £6,000 into stocks and shares, you have a good broker and he gets you a return of 10%.  By the end of the year you have £6,600.  Very nice.
   
3. Put you £6,000 into just 1 property with Global Access we help you choose a sound investment and the market grows modestly at 5% over the year.  By the end of the year you have £45,000. Fantastic!

OK, now we have your attention that’s good, you are saying to yourself, “yeah right, well how does that work” but that’s good because now we have got you thinking!

Here goes…

We have a 3 bed property with a national house builder based in the midlands, we have negotiated a discount of 25% with the developer and through our system we will use the discount as your deposit.  This equates to instant equity in the property a gain in personal wealth just for buying the property. Here is a breakdown…

Gross price of the property = £150,000
Net price of the property = £112,500
Instant equity = £37,500

As you can see your mortgage liability is the net price of the property but is worth the gross valuation price, from day 1 your £6,000 has turned into £37,500!  Beat that bank account or stocks and shares.

Now here is the really interesting bit, how did we get to £45,000 in a year?

For this example we looked at a very modest 5% growth across the year, remember the growth is on the value of the property not what you put into it, this is where property comes into its own.

5% growth over the year on £150,000 = £157,500 add your £7,500 in growth to the instant equity of £37,500…

At the end of year 1 the equity would be £45,000

Now Imagine the possibility of having more than 1 property… take into account property prices have historically doubled every 7 – 10 years… now imagine yourself in 10 years time.

If you like the look of where you could be then we can help you get there, ready to get started?

Sign up now to receive our weekly property release or why not call us on 01904 693329 and speak to one of our consultants to see how this could really work for you.