Entries (RSS)The benefit of borrowing money to invest
If you purchase your property investment using all cash (i.e. without getting a buy to let mortgage), the return you will get is not much different to that which you could achieve with other types of investments.
The reason why property is such a good investment is that with property you usually do not pay using cash- instead you use someone else’s money to buy your property. Banks have always recognised property, and especially residential property, as an excellent security. As a result they are happy to lend a high percentage of the value of a property. Banks are aware that property values have never permanently fallen over the long term.
The benefit of being able to borrow money to invest is called leverage. You put down a small deposit, typically between 25% - 30%, and the bank finances the rest.
Given the ability to borrow money to purchase a buy to let investment you can therefore have a larger investment than you would normally be able to. If you look at an example of a typical buy to let investment costing £100,000. If you have £100,000 available, (maybe through the equity in your main residence) you can purchase this property without getting a buy to let mortgage. However, with the ability to borrow, if you only need to put down a 25% deposit, instead of buying one property at £100,000 you could buy 4 properties and put down a deposit of £25,000 on each.
This will significantly increase the amount of profit you can make from your property portfolio. To work this out for yourself please sign up to my newsletter at www.marywaring.co.uk. A downloadable buy to let calculator will be sent to you. You can then try a number of different alternatives and see the effect on your return.
Because of its history of security, stable income and proven capital growth, residential property is regarded as a prime security or collateral for loans. This means that banks will often lend you up to 75% of the value of your property.
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July 29th, 2010 at 2:09 pm
It was hard for us to travel out of town because we didn’t have a car. It was my wife who suggested that we could just rent a car at a car rental shop. It wasn’t really that expensive and it was a good decision to make because we really needed it. Thanks to my wife!
July 29th, 2010 at 5:36 pm
We had a an enjoyable trip with my family last weekend. We didn’t use our car but we just rented a car from a local car rental since my husband wasn’t sure of the obstacles we’d face. It was still enjoyable because my husband was able to pick a good car. These are those times when car rentals can be really useful.
July 29th, 2010 at 5:58 pm
We had a an enjoyable trip with my family yesterday. We didn’t use our car but we just rented a car from a local car rental since my husband uncomfortable of the obstacles we’d face. It was still enjoyable because my husband was able to pick a good car. These are circumstances when car rentals can be beneficial.
August 4th, 2010 at 3:06 pm
2. Life in general can be a little difficult for most of us. people go to work to recompense for dues and mortgages and spare only a couple dollars for forthcoming use since we’re all used to living our lives in debt nowadays .
August 4th, 2010 at 3:26 pm
My partner and I were talking about how we lived our lives in the past few years and life in general. I always love spending moment with him through a wonderful conversation. Our teacher gave us a school assignment where we have to compose a song regarding life in general. I’m studying Art and Music in a university in our town and I’m really excited to begin working on the project we were assigned to do.
August 4th, 2010 at 3:45 pm
1.I was invited a few months ago to be a lecturer at a high school in a nearby city. I’ve been in several career talks before as a speaker and I’m excited about this new invitation since I consider it very satisfying to talk about career and life in general. Life in general can be a little difficult for many of us. people go to work to pay for fees and credits and spare only a few dollars for future use since we’re all accustomed to living our lives in debt nowadays .
August 4th, 2010 at 4:26 pm
We were discussing in class a artwork during the Renaissance period . It was a classy painting about life in general throughout those times. There were characters in the painting doing their daily routines and the painting was like a window of the earlier period.
August 4th, 2010 at 4:41 pm
I was strolling at the mall when I saw a thief dashing towards the exit carrying a bag from a young lady. I was relieved that it wasn’t me whose bag was stolen but I felt sad for the victim. Life in general can be unexpectedly harsh for some of us.
August 4th, 2010 at 4:59 pm
10. I was reading Paulo Coelho’s book entitled Eleven Minutes and I felt sympathy for the central character in the story since life in general for her was cruel. The writer was really creative without losing grasp of the ruthless realities of these days which made the novel worth reading.
August 5th, 2010 at 9:04 pm
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August 6th, 2010 at 8:27 am
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August 7th, 2010 at 4:58 am
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August 7th, 2010 at 9:24 pm
Made a video about this, would you and anyone else here consider looking at it real quick and let me know your thoughts? I left the link in the website field, hope you can access it. I’d appreciate it greatly, thank you
August 9th, 2010 at 3:50 am
Made a movie about this, would you and anyone else here mind looking at it real fast and let me know what you think? I left the link in the appropriate field, hope you can get to it. I’d appreciate it lots, thanks
August 12th, 2010 at 8:31 pm
I have a appointment with my dentist next week to have my braces extracted. I am so thrilled because I have been having my braces for 2 years now. I can no longer remember how I really looked without my braces. I’m thinking to have a hair cut after visiting the dentist to have a full make over of myself. I’ll be going to the dentist tomorrow to accompany my grandfather. He’s having troubles with his false teeth because it never stops on coming off. whenever he eats or talks it would just suddenly come off and he finds it very embarrassing . We’re considering to have his false teeth repaired or maybe get him some new ones.
August 12th, 2010 at 8:52 pm
I went to the dentist a few weeks ago to have my braces on. I’m still having difficulty in chewing because of the wires. I also observed that I’m having a lot of wounds inside my mouth because of the wires and I consider it very inconvenient . When I was little I’ve always wanted to become a dentist. That’s the rationale why I went to the university to study dentistry. I’m currently in my second year and I’m hoping that I’ll be able to pass in all the subjects so that I can graduate soon enough and be able to practice my dream job . We were fooling around at the pool yesterday when I accidentally slipped and hit my face on the ground . I thought nothing was wrong when I noticed I lost my front tooth. It was shortly that I realized that my mouth was full of blood because of the missing tooth. We immediately went to the dentist to get it fixed .
August 12th, 2010 at 9:09 pm
I’m thinking to set an schedule with my dentist tomorrow for a check-up since I’ve been suffering from tooth sensitivity recently . I find it very painful to consume a glass of cold water which is absolutely unusual for me. I was amazed to see my officemate with really white teeth yesterday. She whispered she visited to the dentist to have her teeth bleached. Because of her testimonials I’m thinking to visit my dentist next week to have dental bleaching as well.
August 12th, 2010 at 9:33 pm
Jimmy and I were discussing about bringing our children to the dentist next week. Our kids have habits of eating chocolates and not brushing their teeth subsequently. This resulted to their cavities . I’m just worried that the kids and I will be having a lot of troubles tomorrow because they are afraid of going to the clinic.
August 18th, 2010 at 5:36 pm
I continuously enjoy volunteering at the nursing center near our house. I find it very gratifying to spend quality time with the seniors there and they have so many things to impart about life in general which is worth learning.
August 18th, 2010 at 7:04 pm
My brothers and I were on a vacation to Texas when suddenly out of nowhere a tornado touched down near our vehicle. We all flustered but miraculously we got out of the circumstance without harm. every so often, unexpected things occur which makes you feel lucky of being alive and be able to recognize the value of the beauty of life in general.
August 23rd, 2010 at 9:26 pm
My friend suggested a car rental shop when my family and I had a recreational activity out of town. It was an choice to make for us since we didn’t have a car back then. I didn’t regret renting one because it was enjoyable and now I know that it is more convenient.
August 23rd, 2010 at 10:17 pm
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August 24th, 2010 at 6:20 pm
My friend has a dealing on car rentals and he really loves having it. Part of his business is also fixing small parts of cars. He has become more thriving than ever with his business and it has really help him with a lot of financial problems.Car rentals are one of the best business trends offered that I find witty so far. I can’t help thinking about cars being borrowed by people you barely know. Although it is a good business, it is rather risky for me since I am a kind of person who his profit.My father used turn down the idea of renting a car from a car rental. He would say that it is to risky since it is not our personal car that we would be renting and using. Although we would be paying for the car, he would still refuse to ride it.