Historically, people have invested in property, usually as a medium to long-term investment. In recent years televsion programmes and magazine articles have helped fuel the property market, property investment and buy to let property portfolio developments.
Whether it’s buying a run down property to renovate, off plan or new build investment property, it seems that everyone wants to get involved. And, why not? When property has always been regarded as a good investment, surely property investment in the UK or overseas is the right thing to do. Some people use the increase in property value of their own home as a marker for likely returns on their investment property. But property investment can have it's risks? This is where experts are needed as buying an investment property can quickly lead to the development of a substantial portfolio, but only if done in the right way.
CAN YOU GET RICH QUICK WITH CHEAP PROPERTY?
Unless, you're a lottery winner this weekend it's unlikely that you'll ever find a get rich quick scheme that works. Don't be enticed by some claims of 'No Money Down Cheap Properties' A certain amount of money will always be needed in property investment. Due dilligence must be carried out on all prospective investments and returns need to be planned for for the medium to long term not next year! In the medium to long term there is no reason why you can't make property investment a very profitable venture.
Ok, it is unlikely that we will see the enormous price increases of recent years but history does have a habit of repeating itself and over the long term property prices have tended to go in cycles with prices doubling in value every seven years on average. This means that Buy to Let investment properties are a wise choice, but you still need to do your homework and seek advice and property investment training which we are happy to provide. (see Rutland Training)
STOCKS AND SHARES OR BRICKS AND MORTAR?
You could invest your money on the stock market but shares can go up or down and only the sum of money you invested will be affected by the rise and fall of share prices.
For example, if you invested 20k on the stock market your investment will go up or down in value depending on the shares performance.
However, if you invested 20k in a buy to let property valued at 200k your total capital investment of 200k will rise on an annual basis not just the 20k invested. Even an annual 5% rise in the property market would give you an annual growth in equity of £10,000.00.
If that rate of capital growth continues year on year you have got a solid return.
| List Price | £200,000 |
| 15% Discount | £30,000 |
| Net Price | £170,000 |
| Costs (stamp duty, legal and broker fees) | £3000 |
| Instant Equity | £27,000 |
| 5% | 10% | 15% | |
|---|---|---|---|
| 1 year | £210,000 | £220,000 | £230,000 |
| 2 years | £220,500 | £242,000 | £264,500 |
| 3 years | £231,525 | £266,200 | £304,175 |
| 4 years | £243,101 | £292,820 | £349,801 |
| 5 years | £255,256 | £322,102 | £402,271 |
| 5% | 10% | 15% | |
|---|---|---|---|
| 1 year | £37,000 | £47,000 | £57,000 |
| 2 years | £47,500 | £69,000 | £91,500 |
| 3 years | £58,525 | £93,200 | £131,175 |
| 4 years | £70,101 | £119,820 | £176,801 |
| 5 years | £82,256 | £149,102 | £229,271 |
What Type of Properties
The Rutland Partnership deals with new build investment properties when the development is very near completion. Property developments currently being constructed can limit what type of discount property we have available but it is not uncommon for us to secure the following property types.
- Modern Terrace
- Semi Detached
- Detached
- Luxury Apartments
- Townhouses
- Mews
Due to the recent demand for Buy to Let properties there would appear to be an over supply of apartments in some city centers and towns throuhout the UK. TRP constantly look at each development on its merits and ensure they have great letting potential and capital appreciation over the long term before confirming a purchase.
Whatever type of investment property we do secure, rest assured they will have genuine builder discounts and valuations where rental returns can be sensibly achieved - the way to intelligent property investment.
