Investments & Sourcing
Investing in a property in Edinburgh and the Lothians
Investments are a critical step in the attainment and protection of personal and commercial wealth.
Investments allow your money to work for you, building upon itself and earning returns, which make them more attractive than savings.
Property remains the primary form of investment for most people, and at Smart Property our experienced estate agents can advise you on the best options.
One of the most attractive elements of investing in property is that it can be done through the use of borrowed money. A mortgage can be used to purchase the property, meaning there is no immediate draw on all your financial resources. If you are buying a property to maximise annual income, spreading your cash over a number of properties will generate more income as a proportion to the amount you’re planning to invest.
Spreading your cash over a number of properties will also enable you to benefit from capital growth.
Be Smart…
Examples:
Someone with up to £120,000 to invest with a typical annual gross rental yield of 6%.
Option 1: Cash Deal
Buy 1 property for £120,000 cash will give an annual gross income of £7,200
Capital Amount £120,000
Option 2: Mortgage Deal
Buy 4 properties each for £120,000 using 75% buy to let loans
(with 5% interest only loans)
Annual rental income after mortgage deduction for all properties is £10,800
Capital amount of £480,000
You can see from these 2 examples that the capital amount in Option 2 is £480,000 even though you only own £120,000 of it. So when values double you will have £960,000 of capital as against £240,000 if you had purchased just 1 property.
As you bring in tenant rental payments in excess of what you will need to pay for your mortgage and interest, you will immediately have a reliable income that can be used as you wish.
Another draw of property investment is that this form of investment is largely passive. The purpose of our service is to offer investors the flexibility to make the most important decisions as needed and then remain essentially hands-off while collecting your returns.
We take care of sourcing the property, coordinating refurbishments as needed, and then manage the property with minimum involvement of the investor.
Investing in property is a safe and secure form of investment that allows for the building of a strong portfolio and reliable income stream for years to come. This form of investment offers you the opportunity to create the lifestyle you desire, a comfortable retirement, or to invest in the stability and comfort of your children’s future.
