Creating
Financial Freedom
through Property

• We recommend £50,000 as a minimum. This gives you enough to pay the 25% deposit required for a rental property, 3% stamp duty, solicitor’s fees, mortgage arrangement fees, our sourcing fee and any refurb costs required.

• In the past, we have had clients use their own solicitors and brokers. What we found was that there was a communication breakdown. We have a great mortgage broker and team of solicitors that we have built a relationship with. We speak to them every week to make sure that your property is progressing, and because they know us, we don’t get any of the ‘excuses’ that these trades are often known for. By using our team, it gives us full control so that the process can run smoothly and you can be as hands free as possible.

• We have a great Letting Agent who we will introduce you to towards the end of the refurb process. They will find you a tenant, ensure you have everything you need for the tenancy agreement and communicate with us on the rare occasion there is any snagging to be done once the tenant moves in.

• What many people don’t realise is that a rental property requires a bigger deposit than a residential home. The deposit is usually 25% but can be more depending on your circumstances. Also, don’t forget that you will need to pay stamp duty which is charged at 3%.

• We are not tax advisers and as such, we recommend you speak to our tax adviser as every person is different. But in our experience, we have found that for the majority of people, buying in a Ltd company works out to be much more beneficial for tax purposes. Whilst you may pay slightly more on your mortgage interest (2.5% for personal name, 4.5% in a company), you can offset the full refurb against tax in the company. The mortgage is classed as an expense in a company, so you are only taxed on the profit whereas in your personal name you are taxed on the full rental income. If you are in the 40% plus tax bracket, you will be charged 40% plus on the rental income if it is in your own name whereas in a company you will be charged at the standard corporation tax rate. There are other pros and cons but as suggested, please talk this through with a tax adviser. If you haven’t got one that you use already, we can recommend one to you.

• We always recommend that you do your due diligence on the properties we send you.

Due diligence is where you look at the property, what you are paying for it and the return it will give you. You check whether you believe it to be the right property and deal for you and check if it meets your criteria.

• We charge 10% with the minimum being £500.

• We charge £7500 per property and take the fee up front. This allocates you a space in our client list. After taking the fee, we give ourselves 4 months to find you a property. In the unlikely event that we don’t find you a property in that time, you can choose to extend the search period or have a full refund.

• We aim to source you a property that will give you a minimum of 8% return on your investment per annum.

• We want to provide you with a hands-free service but there are a few things we need you to do. There is paperwork to sign for the solicitor and mortgage broker, a few phone calls to be had and money to transfer to the solicitors for the purchase and to us for the refurb.