Create a positive income stream by investing in property

You still have the opportunity to make money, even in a recession, but you need to select the right property.

A high yielding property will give you a positive cash flow from day one, as well as the potential for long term capital appreciation.

There is a shortage of property in the UK which is why prices remain high despite the economic conditions we are in.



There is still a good demand for student accommodation due to rising numbers of students going to university and wanting to live away from home.

There are a number of suitable properties in the area for letting to students, but these are generally 3 bed houses and 3 bedroom maisonettes. The lounge is then normally split to create a fourth bedroom (occaisionally it may be possible to create a fifth bedroom if an extension is built). These investments are still providing positive cash flows for our clients and higher rents than what could be achieved if rented out normally.

Here is a worked example of a house purchased last September:

Purchase costs:

Purchase price £187,500

Stamp duty £1,875

Misc legal fees £1,058

Refurbishment costs £2,500

Total initial spend £192,933

Income

£85 per room per week x 4 people x 52 weeks £17,680 pa

Less 15% management fee £2,652

Income after management charge £15,028

Borrowing costs

BM Solutions interest only mortgage at 5.89% fixed for 3 years £707.48 per month £8,489 pa (75% LTV)

Notional cost if deposit borrowed at same rate £2,858

Misc costs

Insurance £287

Annual gas safety certificate £72

Total expected profit £3,322 pa

Net yield on property c 7.5% For details of current properties available please call us on 07767 018020.



Risk warning:

Before purchasing a property you should be aware of the investment risks associated with property and that prices and rental income can go both down as well as up. This document should not be construed as financial advice.

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Tel. 07767 018020