Low
Deposit Funding: Use the discount
on our properties to purchase four properties
for the cash outlay normally spent to
purchase one!
Financial leveraging or gearing
means using other peoples money
to increase your profits. It is the
key to building a property portfolio
with minimal cash outlay. It is also
the reason why buy-to-let can
offer an outstanding return on investment.
A buy to let investment will normally
require a 15% deposit with the remainder
covered with a buy to let mortgage.
However with Freedom’s strategy
and with the help of specialist buy
to let mortgage experts it is possible
to buy with very little cash outlay. |
Fig
1.1
| |
Traditional
Method |
The
Freedom Way |
| Purchase
Price |
£150,000.00 |
£150,000.00 |
| Deposit
required |
£22,500.00 |
£0.00 |
| Arrangement
Fee (inc VAT) |
£0.00 |
£3,525.00 |
| Discount |
£0.00 |
£22,500.00 |
| Acquisition
Costs (approx) |
£3,000.00 |
£3,000.00 |
| Total
cost to buy |
£25,500.00 |
£6,525.00 |
| Instant
equity |
-£3,000.00 |
£15,975.00 |
|
|
|
|
As
you can see from the table in fig 1.1
standard deposit on a buy to let could
be used to buy four properties.
Fig 1.2 is what it means to you in real
terms based on an estimated capital
growth of 5% per annum. |
Fig
1.2
| |
Traditional
Method |
The
Freedom Way |
| Total
property value |
£150,000.00 |
£600,000.00 |
| Property
value in 5 years |
£191,400.00 |
£765,600.00 |
| Equity
in 5 years |
£56,400.00 |
£225,600.00 |
|
|
|
|
- 1
- Free Buy to let investment strategy guide - ‘Maximise returns, minimise costs’
- 2
- Regular updates with latest 25% + discounted deals off plan and completed
- 3
- Introduction to independent finance and legal experts
|
