How it works
Our simple method of building a property
portfolio with an immediate equity gain is explained in more detail
below.
Our example is based upon a list purchase price of £180,000
with a discount of 15% (£27,000) and our arrangement fee
of 2%+ vat.
| List Price: £180,000 |
Arrangement fee: £4230 |
| 15% discount: £27,000 |
|
| Net price: £153,000 |
|
| |
|
Total
price: £157,230 |
Total
discount: £22,770 |
Even with our finders fee there is immediate potential equity
gain of £22,770
Assuming the market continues to grow at a positive rate over
the next 10 years you will see the value of your property increase.
The table below illustrates compound interest over a one to ten
year period between 0% and 20%
| |
0% |
2% |
5% |
7% |
10% |
12% |
15% |
20% |
| Year1 |
£180000 |
£183600 |
£189000 |
£192600 |
£198000 |
£201600 |
£207000 |
£216000 |
| Year2 |
£180000 |
£187272 |
£198450 |
£206082 |
£217800 |
£225792 |
£238050 |
£259200 |
| Year3 |
£180000 |
£191017 |
£208372 |
£220507 |
£239580 |
£252887 |
£273757 |
£311040 |
| Year4 |
£180000 |
£194837 |
£218791 |
£235943 |
£263538 |
£283233 |
£314821 |
£373248 |
| Year5 |
£180000 |
£198734 |
£229730 |
£252459 |
£289891 |
£317221 |
£362044 |
£447897 |
| Year6 |
£180000 |
£202709 |
£241217 |
£270131 |
£318880 |
£355288 |
£416350 |
£537477 |
| Year7 |
£180000 |
£206763 |
£253278 |
£289040 |
£350769 |
£397922 |
£478803 |
£644972 |
| Year8 |
£180000 |
£210898 |
£265941 |
£309273 |
£385845 |
£445673 |
£550624 |
£773967 |
| Year9 |
£180000 |
£215116 |
£279239 |
£330922 |
£424430 |
£499154 |
£633217 |
£928760 |
| Year10 |
£180000 |
£219418 |
£293201 |
£354087 |
£466873 |
£559052 |
£728200 |
£1114512 |