Any spare cash at your disposal needs to work hard to grow beyond inflation and with markets currently depressed it is a 'Buyers Market'.  But, where should you consider investing your hard won money.  Here is food for thought ... 

All investments share the same four basic features ...

1. A product i.e. stocks, shares, precious metals, precious stones, works of art, cars, property etc;

2. A buyer i.e. this can range from a small number of professional collectors or institutions seeking, for example, fine art, to many thousands of ordinary people accepting share options from their bank or building society to, private individuals or investor clubs;

3. A seller i.e. someone with something of value to sell;

4. A good price i.e. traditionally where demand exceeds supply, prices will be forced upward and, where supply exceeds demand, prices will be forced downward.

In addition to the above, the very best investments have two other key-features:

5. They are bought with someone else's money i.e. legitimate borrowing; and,

6. They attract *tax breaks i.e. deductable business expences and, Capital Gains tax relief. 

Only one of the mentioned investments contains all 6-features and we are here to find these deals for you. 

Here are three comparable examples of £100,000 investment :

1. Gold, gemstones, stocks & shares etc. for £100,000.
Will cost you cash £100,000. 
Day one equity in that investment will be c.£95,000 due to the costs of trading (5% dealer fees).
Net cost to you £100,000.
Day one return on your investment minus £5,000.

2. An Estate Agent bought property for £100,000.
Will cost you cash £25,000 deposit (plus £312:50 per month (@ 5%pa) to service a £75,000 mortgage, and if you let the property, the rental income of c. £350per month will cancel out the costs of the mortgage repayment). 
Day one loan £75,000.
Day one equity £25,000.
Net costs to you £25,000.
Day one return on your investment £Nil

3. A Below Market Value, Buy-To-Let property for £100,000.
You will purchase for only £75,000 (typically 25% off market value).
Will cost you cash c.£5,000 (plus £312:50 per month (@ 5%pa) to service a £75,000 mortgage, less rental income of c. £350per month, which cancels out the costs of the mortgage repayment).
Day one loan £50,000 (Deposit Paid).
Day one equity £25,000.
Net costs to you £5,000 (Fees).
Day one return on your investment £25,000 or 5-Fold.

In A Nutshell:

If you had £100,000 to invest, you could buy up to twenty (20), Below Market Value, Buy-To-Let properties with a true market value of two-million pounds or more;

Or

For every £5,000 you have to invest, you could buy one (1) BMV/BTL with a true market value of 10-20 times more than your investment!

To find out more about how BMV property works and strike the 'market' whilst the iron is hot, call Gina Angeletta 01275-846662 for an informal discussion.

*It is your responsibility to seek independent tax advice.

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