Property and Real Estate

Investing and Investment Plans

Here's one:

Buy a property at BMV (below market value) for cash, then mortgage the property at the market value and get your money back! Simple!

Simple example:

Buy a property worth £100,000 at £80,000 cash.
Mortgage the property at 80% LTV (loan to value)
The lender pays out £80,000 giving you back your investment

If the mortgage is at 5% that is £4000 per annum or £333.33 per month
If you can achieve £333.33 rent per month then your mortgage is paid for by the tenant

Apart from the property maintenance you then have a free house.