Lender Goal Posts

There have been significant changes for landlord/investors in the property market during past months and whilst the opportunity to buy seriously discounted property remains strong, continuing for the foreseeable future, lenders are without doubt moving the goal posts.

Whether buying buy-to-let or buy-to-live, there is an increasing requirement for proof of deposit (typically 25% of the purchase price). The good news however, is that with us you are buying for 25% less than with an estate agent and finance approvals proceed quickly for investors with deposit who will take advantage of our excellent deals.

With high rental expectations and typical 33% immediate equity on our BMV purchases, the opportunity for investors to build a high equity, high yielding portfolio of 5, 10 or more properties is very real. For example, our typical BMV deal could mean that you buy an £80,000 property for just £60,000: with a deposit of just £15,000 (25% of £60,000).

After paying legal fees, valuation and finders' fee, you will typically enjoy an £80,000 property with more than 40% equity and positive cashflow of £2-300 per month. All this for an investment of less than £20,000 instantly doubling your money and with positive cash-flow far exceeding Savings Account, Bonds or Cash ISA's.

The more you invest, the more attractive the return. If you buy 10 BMV properties over the next 12 to 24 months for an investment of around £200,000 your portfolio could be worth £800,000 with equity of nearly half and positive cashflow of £30,000 per year.

STOP PRESS Lloyds Banking Group have reduce the number of Buy to Let mortgages they will allow one individual - but you can double this for your family if you and your spouse buy in separate names. The Mortgage Works have as yet no upper limit on how many mortgages they will allow but acceptance criteria can be very tight.

Whilst no one can safely predict what the future will bring to the property market, we believe that property remains the best opportunity of real capital growth and healthy rental income over the medium to long term. No prudent investor will ignore an opportunity to create real wealth, supplement retirement income and include high yield investment property as a valuable part of their investment strategy.

With a growing number of deals coming through every week why not discuss your tactics with John or Gina.