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The current "credit crunch" - with high interest rates
and high requirements for rental coverage, means that fewer
deals work as No Money Down.
Some are still achieveable, but invariably mean high
interest rates and a monthly shortfall ie the rental
income does not cover the mortgage.
As an investor, you are faced with a choice.
Lowest money in - meaning highest borrowing, less favourable
interest rates and highest mortgage payment.
Or more money in - meaning lower borrowing,
better interest rates and lower mortgage payment.
For most purchases you are likely to need 20%, 25% or even
30% deposit - but with the discount being used to subsidise
it - you can get away with 5-10% deposit.
Still infinitely better than needing the full amount
- as the following example shows!
HOW TO BUY TWO
PROPERTIES FOR THE SAME CASH OUTLAY AS YOU’D USUALLY
NEED FOR ONE!
Here's how it works ...
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Funding
Property The Traditional Way |
Funding Property The Fast-Track Way
|
| Retail Value |
£150,000 |
£150,000
|
| Deposit |
£30,000 |
£7,500 |
| 80% Mortgage |
£120,000 |
£120,000 |
| Discount/deposit (15%) |
£0 |
£22,500 |
| Net Price |
£150,000 |
£127,500
|
| Arrangement Fee |
£0 |
£3,999 |
| Typical Acquisition costs |
£3500 |
£3,500 |
| Total
Cash Outlay |
£33,500 |
£14,999 |
The above example is based on the 15% discount being used as the deposit on completion and is subject to status for buy-to-let mortgage purposes.
Acquisition costs include mortgage broker fees, legal fees and stamp duty |
Let's say you obtain a buy-to-let mortgage to purchase
a property, which has a developer's list price of £150,000.
As you can see, funding the property in the traditional
way would need a total cash outlay of £33,500.
Funding the Fast-Track way, with a 15% discount requires
a total cash outlay of only £14,999. NB - This is
a typical example - although some properties come with higher
discounts, and can reduce the deposit. With some we don't
even charge our fee.
The £33,500 you’d need to purchase ONE property
can now be used to buy TWO.
It’s easy to see how you could quickly own a substantial
property portfolio - and be in instant profit, due to the
bargain prices.
Call us now on 0207 758 2580
for details of current BELOW MARKET
VALUE PROPERTIES.
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