There’s a great saying in investment land and its
‘ Buy low, Rent high with a good manager nearby’
A bit of a throw-away line but it’s so true. Professional investing is about the numbers, the bottom line – Profit! Sure it might be nice to drive past your investment property on the way home but does it really matter? No, if the highest ROI deals are away from where you live and even with a 10%pcm manager fee included into your figures your returns are higher than yes it makes complete sense. Read more on this by clicking here.
We are currently sourcing strong investments in areas where properties can be picked up at around £50,000
If you’re planning on mortgaging your first investment property is the lowest purchase price Lenders are currently lending against. The standard BTL (Buy to Let) mortgage products right now require a 25% deposit so £12,500 then approximately 3-5% for legal and fees £1,500-£2,500. Then say it needs a £5,000 refurb that would mean you could start your investment journey for around as little as £20,000!
For example, let’s say a purchase price of £50,000 was 12.5%(BMV) and that the uplift you’ve given the property through refurb has added more value. You can then refinance, draw most of your capital back out to go towards your next investment.
No, our specialist team will take care of every step of the process and involve you as much or as little as you want. Whether you’re looking for a completely hands-off experience purely focusing on the end return or you would like to enjoy the experience of investing along the way, either can be delivered.
BTL, HMO, Flats, or commercial, there are so many strategies and all of them work but choosing the one that’s right for you personally and financially along with the right timing is key to long-term growth and success. The strategies will change and grow as your portfolio grows. We can guide and work with you to make the right decisions at the right time.
This in our opinion is the old school way of thinking versus the new way conundrum.
The old school approach is to work hard in your job for 25 years to pay off one asset.
The new and in our opinion better approach is to listen again to the numbers. With interest rates so low right now. You can leverage this and take some (not all) of the available equity in your home out through refinancing at say 2% then invest into one or maybe more investment properties that give you 10-15% returns. You will then have multiple properties increasing in time with capital appreciation plus receiving a positive monthly cash flow.
Depending on the level of refurbishment that is needed, 3 months is the average time it takes after your initial inquiry to source and complete your investment ready to let.
At PSP we source property investments that have extremely high returns which therefore gives us and you the reassurance that if for some unexpected reason it falls slightly short of the expected returns it will still generate a more than acceptable high ROI%. One example of this could be increased refurbishment costs that would only come to light once work commenced at the property. If your margins were tighter which can happen to less experienced investors this could turn a good deal into a bad deal. PSP carries out extensive due diligence on all our investment properties to give us wider margins so if monsters in the closet appear during the refurb phase our numbers can handle it.