I had a great 3 days. I met up with over 70 people over the Fri/Sat/Sun and I hope those of you I met got some good advice from me. So what did I learn from the 3 days? Well I learnt that there are alot of you out there really do believe in what I teach about yield. This I am glad about as its the only real measure of ANY investment.
Just to jog your memory yield is Annual Rent divided by Purchase Price. I did see some people who have invested in properties where BMV (Below Market Value) was more important than yield and they are now paying the price. Can I just say they should change BMV to BSOIV. This is short for BELOW SURVEYOR'S OVER INFLATED VALUE!
Remember: A property is only worth buying if it puts money in your pocket from day 1. Equity means nothing if you have to work like a slave to top up the mortgage to "preserve" this equity. Equity is only real once it is accessed by either remortgaging or selling. Try selling these BSOIV properties for the over inflated price and you'll soon realise this price is based on fiction. Its just a matter of time before the Serious Fraud Office crack down on these property companies and surveyors as the surveys bare no relation to the market value.
I also met alot of people who wanted to leave their job and become their own boss. This I hope they do. To do this you need to set a financial target, like a monthly income target, and then work backwards. If you require £2,500 per month and you have found a property that can return £500 per month profit then you obviously need 5 of these properties.
If each property costs to £10,000 to acquire, then you need 5 x £10,000 = £50,000. Now don't say I do not have £50,000, because I never said this to myself when i had nothing. You just have to go out there and borrow it. Be it credit cards, unsecured loans, secured loans, remortgages, early inheritances or IOU's - just raise the money! If you're wondering where you can get cashflow positive properties that return you £500 per month from a £10,000 investment then I can tell you - its the USA.
Anyway was a great weekend and there will be plenty more of these roadshows, so I hope to meet you all.
Happy investing.
Ajay
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Posted on: 26th Feb 2008
Just to jog your memory yield is Annual Rent divided by Purchase Price. I did see some people who have invested in properties where BMV (Below Market Value) was more important than yield and they are now paying the price. Can I just say they should change BMV to BSOIV. This is short for BELOW SURVEYOR'S OVER INFLATED VALUE!
Remember: A property is only worth buying if it puts money in your pocket from day 1. Equity means nothing if you have to work like a slave to top up the mortgage to "preserve" this equity. Equity is only real once it is accessed by either remortgaging or selling. Try selling these BSOIV properties for the over inflated price and you'll soon realise this price is based on fiction. Its just a matter of time before the Serious Fraud Office crack down on these property companies and surveyors as the surveys bare no relation to the market value.
I also met alot of people who wanted to leave their job and become their own boss. This I hope they do. To do this you need to set a financial target, like a monthly income target, and then work backwards. If you require £2,500 per month and you have found a property that can return £500 per month profit then you obviously need 5 of these properties.
If each property costs to £10,000 to acquire, then you need 5 x £10,000 = £50,000. Now don't say I do not have £50,000, because I never said this to myself when i had nothing. You just have to go out there and borrow it. Be it credit cards, unsecured loans, secured loans, remortgages, early inheritances or IOU's - just raise the money! If you're wondering where you can get cashflow positive properties that return you £500 per month from a £10,000 investment then I can tell you - its the USA.
Anyway was a great weekend and there will be plenty more of these roadshows, so I hope to meet you all.
Happy investing.
Ajay
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Posted on: 26th Feb 2008
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