Investment | FAQs | How we work | Example purchase

REAL EXAMPLE PURCHASE

We recently had access to a development in Stouport that we managed to get an 18% discount on. In order to show you how this can work for you, below are the costs incurred by one of our investors who bought on the development:

MARKET VALUE - £143,950
DISCOUNTED TO £118,039 (£25,911 DISCOUNT)

• Reservation fee (payable immediately) - £1,000
• Valuation fee (payable up front) - £400
• Searches – (payable up front) - £300

TOTAL UPFRONT COSTS - £1,700

Of the 18% discount: - 15% was used as deposit for an 85% Loan to Value mortgage - £21,592.50 1% was used for Stamp duty - £1,439.50

Discount - £25,911.
Costs - £1,700 + £21,592.50 + £1,439.50.

This gave him a 2% cashback worth £2,879.

This cashback, less upfront costs, left £1,179. Our Finders Fee was £1,180 so to this point, it had actually cost him £1 to secure this property!!

On exchange, the reservation fee is returned. This gave him £1,000 with which to pay his solicitor which was about £600, so in effect he was given £400 to buy a property that had an immediate equity of almost £26,000.

This investor made his own mortgage arrangements so he had no fee to pay to a broker, but even if he ended up paying 1.5%, he would still have paid very little, for that kind of equity. We very often get developments with discounts higher than 18% so just imagine the small amount you’d end up paying for that amount of equity.

Yes, it sounds too good to be true, but plenty of people are now realising that it IS true.