London, United Kingdom, February 18, 2009 --(PR.com
)-- £130 per month profit from month 1, guaranteed for 12 months? It's Discover and Invest of course!
Following on from the ambulance and renewable energy offers, Discover and Invest is pleased to announce yet another income generating opportunity that is sure to deliver.
Chris Davidson, Managing Director for Discover and Invest tells us that “whilst sourcing for 2009, and although we usually get involved in alternative income generators, we noticed that the UK property market was starting to show real value. Prices had fallen, yields had risen, and a good quantity of cheap stock was available to the market.” Therefore as usual the problem is separating good deals from bad.
Davidson continues: “there are various problems facing would-be property investment buyers today: lots of stock without tenants resulting in poor cashflow forecasts, problems getting finance because the rental valuation coverage is too low (125% minimum these days), valuations getting downgraded too often meaning valuation funds are risked time and time again only to find the deal falls through. Finally, in a market where the value is good and the immediate bonus is strong cashflow from rentals, how do you secure the rental income?”
Discove And Invest have finally come up with a deal that knocks the socks off just about all property deals at the moment. Firstly, their deals guarantee a 20% discount from today's RICS valuation, with only a 5% net deposit down.
The properties they are sourcing are rentbacks, so you have quality tenants in your property from day 1, paying from day 1...so no worries about finding tenants, how long it will take to get them in, and whether they will look after your property. Remember the property used to be the new tenant's home, so it will be filled with their own furniture, etc. This is much more likely to mean you have stable cashflow and good quality tenants. The new tenants also sign 12 month contracts on premium rent, meaning excellent cashflow and low hassle for you as the rental management company is in place. Furthermore they have teamed up with Endsleigh Insurance to provide their rent guarantee scheme. This secures your rental income for a period of 6-12 months.
They are also so confident that the valuations are accurate, they will pay for the buyer's valuation, means no funds are risked. If the valuation is downgraded, the seller will have to downgrade proportionately. If they physically cannot, all parties walk away from the deal and no funds have been risked! Furthermore, lenders need to see 125% minimum rental valuation coverage, so we will only supply properties that stick up unless the buyers pays in full with cash.
The first property is being released on Tuesday in Cheshire. Valued in the last few weeks at £115,000, the property is available for £92,000. Monthly cashflow after mortgage, rental management and insurance comes to a whopping £134 per month! Total net buying costs are £8,450 so this gives a return on capital employed of around 19%. With £23,000 of built in equity as of today, there is sufficient leeway if the markets falls, and also built in profit for when the market recovers. If you were to sell your property in a year's time for the same price plus your rental income, you would have made a return of 250% on capital employed.
Chris Davidson Managing Director of Discover and Invest states that: “many analysts believe we are in a U curve recession now. Property prices are nearing the bottom in a similar way to what has happened in Florida. The bottom may take a while to turn but it also gives strong investor signals to buy up stock at value prices. We are all taught to “buy low, sell high” and the first part of this equation is nearing the right point for many. Now it is about finding the right deal.”
So yet again, Discover and Invest has hunted out the right deal for this market: accurate discounts, low risk, strong cashflow and secure income. If you take the view that we are nearing the bottom, why not check out the deal at www.discoverandinvest.com