Monopoly is child’s play, right?
The simple board game was our first exposure to learning about property investment. We’ve all played it growing up and seen how easy investing and leveraging cash to buy property is. We know it can make big returns in the long run once you get on the board and build your own portfolio.
But alas, Monopoly money isn’t legal tender. So how do we take these learnings and play Monopoly in real life? Is it really an unobtainable dream to grow an investment property portfolio from nothing?
It might be cheaper than you think to begin
An average three bedroom house in Leeds currently costs around £75,000. This requires a cash investment of approx. £30,000 for you to begin with us. It includes things like the 25% deposit, legal and mortgage fees and our £4,000 sourcing fee. (We’ll show you a full example below).
However, if you already own your own home or other property with some equity, you may be able to leverage this as security. This means you could begin for much less.
What about the real world, how long does it take to start?
It takes five minutes to get the monopoly board out, distribute the cash evenly to all the players and argue over who will be the gumboot or the iron. The real life game with Lifestyle Property People can start with a £500 commitment fee to allow us to start the search. And we love to search. We usually view 30-50 properties in a week - more properties than the whole monopoly board.
Typically, it takes four weeks to source a deal, eight weeks for the purchase process and two weeks for tenanting. So it can take just 3-4 months from deciding to play the game, to receiving passive rental income into your account.
What returns can I expect?
Leeds is the fourth largest city in England. Being at the bottom of the investment cycle it brings a good potential for capital growth. We typically bring in returns of over 10% cash flow as a proportion of investment.
When Fleet Street costs £220 for £18 in rent for 8.2% return, which would you rather? See below for a fully worked example of investment, rent and costs from one of our properties.
But what are the costs?
In addition to the set-up costs included in the example above, Our Lettings Partner charges 10% of the gross rent collected ongoing, voids & maintenance, plus an initial £100 for finding tenants. There are no hidden ‘Chance’ cards or surprise costs on top of this. And we won’t send you to jail. Mortgages are in the area of 4% which is an opportune time to make the most.
Monopoly is a fun game for the whole family to play, it only takes a few minutes to begin and there are high yielding properties.
Or to play in real life, talk to Lifestyle Property People today.
Passionate about helping Investors achieve financial freedom through fully managed, high yielding property investments in Leeds
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