Invest in Property
Buy-To-Let Property
Property makes money in THREE ways
Firstly from monthly cashflow (the rental income after deduction of expenses such as mortgage payments and letting agent fees)
Secondly from capital growth where the value of the property increases over time
Thirdly from rent appreciation (where the rent increases above inflation rates).
Choosing the right Buy-to-Let investment is key and that’s where the experience of our team at ProSports Property Partners comes in. We consider a range of factors assessing a property.
Area – are there amenities such as schools, shops, parks etc nearby?
Returns – does the rental income to purchase price make sense?
Growth – are there signs of investment in the area?
Demand – is this a popular area where people want to live?
Condition – is the property in good condition?
Investing in property can be done either by purchasing in personal names or via a company set up for this purpose. For those looking to build a portfolio we recommend that a property investment company is set up, known as an SPV. This usually offers tax advantages over holding property in individual names.
We do not offer tax advice, however, we can assist you with setting up your company and bank account. We also have relationships with specialist property accountants who can help take care of accounts and regulatory submissions on your behalf, allowing you to concentrate on your sports career!
Buy-to-Let properties can be purchased in cash which gives the opportunity to secure even greater discounts with vendors. We would always recommend subsequently refinancing on to a BTL mortgage as this creates leverage, meaning that you have less of your money left in the deal but you benefit from the capital growth of the whole value of the property.
Buy-To-Let properties can also be purchased using a BTL mortgage product. This means that once fees and acquisition costs have been taken care of, a deposit of just 25% can be used for the purchase with the balance secured via a mortgage. Again, you benefit from the power of leverage. We will assist with your mortgage and introduce you to our highly skilled and independent mortgage broker who will advise on the right mortgage for you.
Property Development (Flips)
Property development or flips are also very popular with property investors, where the project comprises purchasing a property where value can be added, often through a refurbishment programme, and then selling on to an end buyer at a profit. Key to this strategy is knowing the market well to forecast the likely end value to ensure that a profit can be realised.
We occasionally offer these opportunities to our clients but only where we believe the property market is stable and we are in or heading into a growth cycle to minimise the risks to you.