Diary of a Property Investor UK – www.hbfinvestor.co.uk

Most professional property investors and people looking to buy investment properties for the first time are convinced that now is the time to buy.

Today, it is possible to buy ready-tenanted investment properties at a 25% discounts from their current open market value, meaning that property investors can effectively buy properties at 2003 prices!

What does this mean and how does this benefit you?

There are two main financial benefits for you:

1. property prices double on average every 10-15 years.  This means that by 2018 [at the latest?] if a property investor buys an investment property at 25% discount from today’s prices [i.e. effectively at 2003 prices] their property will be worth double the price they paid for it today.
2. rental yields are now 10%.  This means that property investors buying at 25% discounts today are collecting 10% on rent and paying 6% on a mortgage. Property investors are therefore making 4% gross profit each year on each of their investment properties.

Let me show you how by buying just 10 properties at 25% discounts this year these two facts will enable you to retire early and retire wealthy!

For example:  A property worth £100K in 2007 is now worth £80K and you buy it for £60K (25% discount)

It will cost a property investor a 25% (£15K) deposit to buy this property for £60K, so they will have a mortgage of £45K and a property worth £80K.  In 10 years (2018) this property could be worth £120K – giving the property investor £75K equity which is a 500% return on their initial £15K deposit.

The rent on this property at 10% will be £6K/year = £500/month.  The mortgage on £45K at 6% is £225/month so the property investor will be making £275/month (£3300/year) gross profit.  As the investor paid £15K deposit, they will be effective obtaining a 22%/year rate of interest on their £15K investment!!

Conclusion:  In 10 years just one property will give a property investor £75K equity and over £3K/year gross profit from the rent. It is easy for most people to buy 10 investment properties.  If they buy them this year 25% discounts, then by 2018 these property investors will have £750K equity and over £30K/year gross profits from their rents. 

In 10 years with just 10 properties this year, most property investors will be able to comfortable retire on far more than their day jobs and pensions would pay them. And that’s after working 30-40 years until they are 65!

In future posts I will show how EVERYONE can buy properties at 25% discounts without paying a penny deposit!

Buying 10 properties and retiring early is an OPTION FOR EVERYBODY!

Source:  HBF Investments