Why Property?
Most people’s largest passive gain in wealth over the last fifty years has been derived through owning their own home. Imagine if you owned two, four or eight properties or more over the same period and some one else was paying the mortgages! I doubt you would still need to work today.
Consistent Growth
The UK property market has enjoyed ongoing capital growth over the last fifty years with property prices doubling every seven to ten years. Property has proven to be a great medium to long-term investment, regardless of short-term market fluctuations.
Find out the facts about the UK property market
Increasing Demand
The UK has a serious shortage of housing caused by a number of social and demographic factors resulting in an increase in demand for property. This should ensure that the price of property and the demand for rental property will continue to increase over the long term.
Find out why rental demand is set to increase
Instant Profit
Unlike any other investment you can make an instant profit on property from day one by buying a property below the market value through the discounts we negotiate on behalf of our members.
Buffer Effect
Buying property below the market value means that you can make money even in a declining market. According to Nationwide figures, the worst fall in the property market was by 11% back in 1990.
Concept Property offers discount between 15% and 30%; if property priced decrease by 11% you would still make a profit and this is without taking into consideration any capital growth you have achieved whilst owning the property.
Stability
The property market is relatively stable and, unlike many investments, is not subject to rapid overnight fluctuations. Property offers a safe investment provided the correct approach is adopted.
In contrast, the past five years have seen shares and pension schemes performing poorly. (It must be remembered that these can be very volatile and have never been a low risk investment option.)
Control
Unlike many other investments property is a tangible asset which you own and control; its value can be increased through simple measures such as redecoration and modernisation.
Unlike investing in a pension you can re-mortgage your property or sell it at any time and access the profit you have made at a time in life where you may need it or appreciate it more.
Rental Income
Property can produce a consistent income as well as capital growth, which will continue even after you stop working.
Leverage
Most traditional investments, (such as shares), require the investor to have liquid funds to the full value of the investment.
Property is such an attractive investment because you leverage other peoples’ money, usually in the form of a mortgage, to maximise your return.
Most lenders will lend you 85% of the value of a rental property, in other words you don’t have to outlay all of the capital, but can still enjoy all of the profit.
The effects of leverage can be further enhanced using our innovative financing techniques to use your discount towards your deposit meaning that you don’t have to outlay any of your own money.
Compound Growth
Compound growth is the year on year growth of investments and widely considered as being the key to long-term wealth building. The profit you gain stays re-invested in your property, building further wealth each year
Find out how compound growth works
Taxation
When the value of your property increases you can re-mortgage the property to release some of the profit you have made. This could be used to fund the purchase of more property and is tax free. Any gains on property are not paid until that property is sold.