Prices are down, interest rates are at an all time low, distressed sellers are motivated to offer a deal, so my view is…

… Now is a great time to invest in property; Richard Branson, Allan Sugar and James Caan have all publicly and separately stated that they were going to heavily start buying property.  If it is good enough for them it is good enough for me. That’s called modelling success – find someone you admire and do what they do to get the same results. I couldn’t agree more.

It’s a great time to get started in property AND to buy more. Perhaps you might even consider that since prices are low, it’s less of “a risk” for you?

But, there are two main principles that you need to keep in mind while we’re helping you to find your next Dreampad property; Leverage and Cash flow:

Leverage – If I went to one of the high street Banks or Building Societies today, and told them that I had a “hot tip” on shares in a new company – and would they lend me 80% of the money I needed for my investment – what would be the answer??…

Yeah, right!

But property is still readily accepted as a suitable security, even in a difficult market as we have right now. Provided you are an acceptable risk to those same Banks (in other words, you have managed your credit file well, and have a history of borrowing sensibly and paying back on time) they WILL lend you the lion’s share of the money you need to buy.

So now you’re leveraging other people’s money (OPM) to acquire assets that will eventually go up in value over time, at which point you can re-finance and draw out the cash value of that phase of growth.  This, in turn, can be used to buy more assets, fuelling the growth of your property portfolio at an even faster rate.

Cash flow – So now you’re using OPM to get you going, and the “double whammy” in property investing occurs when you have properties that have been bought and funded very efficiently (that’s where we come in!), and those properties generate more income than it costs to own them. In other words your valued tenants pay you more in rent than your mortgage fees and other outgoings (OPM again!), producing surplus funds every month.

If you look at The Sunday Times Rich List, almost everyone in the top 100 places has either made their money in property, or has invested it there as the most effective way of increasing the wealth they generated elsewhere. They understand the value of leverage and cash flow, and they pass these skills on to their kids – to keep the wealth in their families for generations.

For them, there is NEVER a bad time to buy more assets – and more new millionaires will be created in the next couple of years through buying quality properties during a dip in values.

What are you waiting for?…