So how does all this work? - Do you have any examples of current purchases?

Making it clear and simple to all is one of our main philosophies, and we would like to think we are accessible to the normal person, that currently invest in savings schemes such as Isas, Premium Bonds and Pensions.

The type of person that wants to look out for their financial future remaining grounded, in the knowledge that they aren’t going to build 7 million pound portfolios overnight. We make a lot of the fact that on average for a terraced property, just £8000 will get you on the Investments ladder. To give you more of an idea how it all works - please find below our case study for Mr Richards...

Step 1 - The Interest, The Sourcing, The Viewing

Mr Richards approached us, looking to invest in East Lancashire.  Being London based, he was shocked at exactly how cheap the properties we had on offer were - and was buoyed by the value increases the area has been seeing. He had £10,000 to play with, so we sourced him a perfect property - in Colne, just outside Burnley, Lancashire.

The photos of this property are the actual property he purchased, no funny business going on here.  The address is St Johns Street BB9, Check it out for yourself!  The properties we source are generally terraced properties that have been refurbished to a high standard. This ensures that the properties are future-proof, and there are no surprises!

For the purposes of the photo-shoot, we furnished the property out, we removed it before Mr Rodger took the property on, but can offer this option, please call us for that - we have strong ties locally with a reputable furniture retailer. 

So having viewed the property, Mr Richards decided he would go ahead with it. He had his TwentyFour-Key in hand (see Page “The Key to Your Investment Future” for that story) which earned him 5% value in cash towards the deposit.

Step 2 - The Figures

Step 3 - The Mortgage

We have an in-house mortgage broker, who we work in conjunction with who specialise in Buy-to-Let mortgages, so we took care of the majority of Mr Richards' paperwork (other than his signatures) and he passed for the mortgage with flying colours.

Total Amount to Mortgage = £68,849.15
Fixed Rate Mortgage = £334.68 per month

He accepted the competitive mortgage rate, then having decided to leave the tenant hunting and management of his portfolio to us, we found the tenants.

Step 4 - The Management

Twenty Four Estates Ltd, is our sister company check us out online at www.twentyfourestates.co.uk.  Following the sale, and having had Mr Richards' approval, and preferred tenant specification, we found him the perfect tenants; a working young professional couple, who have recently located from Lincoln, and were looking for affordable accommodation within a commute of Manchester. (Incidentally, Manchester is serviced regularly by train and bus from Burnley, and by car is only 38 miles from Colne.)

The Management Rate?

Our current management rate for rental properties in normal instances is 12%. For this, you have a team on hand 24 hours a day for day-to-day repairs and renovation, together with a credit chasing team ensuring rent is in on time every time, and ongoing client management.

But if you purchase the property through us, it goes down to 10%, so for that 10% you need never hear a peep from your tenants!

For a property of this standard, we saw fit to let it at £450 per month fully furnished.

The Figures on that then were...

Rental Income   £450.00 per month
Management Cost   £45.00 per month
VAT   £7.87
Total returned to Mr Rodger   £397.13 per month

As you can see this comfortably covers his mortgage, and this amount hits his bank 2 days before his mortgage leaves, every month.

Step 5 - The Future

Between December 2006 and December 2007 a typical terraced property such as Mr Richards’ investment increased in value by 14.5%. This took it from just over £66,000 to just over £76,000. That is a jump of over £10,000.  This is no fluke either, considering that from 2002 to 2007 the typical terraced house DOUBLED in value!

Mr Richards told us he was looking for a mid-term investment of around 5 years, then he will evaluate with a view to selling. If the current rate of growth (14.5% in 2007) continued, in 5 years his property will be worth £156,456.

The Figures on that then would be...

Remaining Mortgage Amount    £77,000 approx
Conservative Sale Figure    £140,000
Total Profit    £56,860

Remember Mr Richards is earning on top of this £62.45 per month - which is the deficit between his mortgage repayments and the rental income. East Lancashire is one of the only places left in the UK that have a positive deficit between Mortgage Payments and Rental Income. The majority look for their equity from the value as apposes rental income deficits. Over 5 years, this would accumulate to £3,747! It is good practice however to put this figure to one side, in case of any major issues with the property, that require the owners attention.

Mr Richards was delighted with the service he received, and here’s what he had to say...

"Well, what can I say... SIMPLE is not the word, I was delighted with the service Twenty Four offered me throughout the process.  From start to finish, they literally gave me all of the information I needed and more, to make the decision to purchase.  I am happy I have bought in East Lancashire, and I think that even with tough financial times ahead, this area still represents great value for money.  I have properties in Manchester and other cities in the North that I fear will not do as well, however in Colne and East Lancs I think my Investment is Safe!  Thanks again Mark, Gavin and the team, look forward to many more properties with you guys - and thanks for the key!!"

John Richards

We aim to enlighten potential investors, rather than hard sell properties, so we are always delighted to chat.

Please call us on 08454 00 10 24.

We also have a free book, entitled “Investing for Non-Experts”; a fun guide to the ins and outs of the investment World, and what you need to do to succeed!, to get that please drop your first name and email in the webform below!

You have made the right choice now in the first instance finding out about the service, so now you need to take that interest further and CALL US, or EMAIL is fine too!  Info@twentyfourinvestments.co.uk