FT reports boost in buy to let

 

I love financial journalism.  You can take some data, get a few comments from some well known property companies and create an article that cheers everyone up!


FT are reporting that:


  1. rents are rising and will be up by NINE per cent on last year
  2. rents will continue to rise in 2011 and 2012 by SEVEN per cent

WOW!  That is some increase.  Especially when then the LHA rate will be knocked down a peg or two by the new government cuts.  


If we are to believe these predictions rent will be 25% higher by the end of 2012.  So if you buy a property that yields 8% today it will yield 10% by the end of 2012.


If you look at the cashflow and you bought a property that yielded 8% today, you could expect to earn another 2% as pure profit on the cashflows.  In other words if you bought £1m worth of property you can expect to earn another £20,000 in profit just by merely being the owner of the property.


No enhancements

No creative ideas

No additional spend


Just by being the owner of a portfolio you get to collect another £20k profit per million invested. 


Now before you say "I do not have a million!" you do not need a million.  You get it off the banks. 


And before you say "I do not have a deposit" we know people who will lend you the deposit also. 


And before you say "I have bad credit" we can introduce you to lenders who do not mind your not so perfect credit history.


I have been investing in property for 12 years now and I am a living example of how a young Essex boy, educated by state comprehensive and grew up on a council estate can now live a lifestyle that I did not even dream of. 


My portfolio returns me a very nice income and I did this all with the banks money.  Not mine (as I did not have any!), not given to me (as my family were not rich!) and not stolen as I am not a criminal!


If I want you to get anything from all of this it is this:


BUY ASSETS WITH OTHER PEOPLE'S MONEY


If you follow this path you will be rich in 12 years but probably sooner as asset prices have never been so low.


To read the FT article go here.


To start your investment career contact me and I will put you in touch with all the people who are willing to lend to YOU.


Ajay


Posted on: 29th Jul 2010






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