As potential property investors you may be choosing between a number of investment options. Here’s a brief overview of the some of the differences between what My Property Partners is offering and…
Click each panel to see the detail
… Keeping your money in a saving account at the bank
- Your returns are restricted by the interests rates offered by banks
- Over the next year or so it is expected that the Bank of England will reduce interest rates, this will in turn reduce the interest you earn on your money
- If history is anything to go by property delivers substantially more returns over the long term
… Investing on my own in a buy-to-let propert
- You will most probably need to take out a mortgage
- Many companies out there will encourage you to release equity from your own home to cover the upfront costs like deposits, stamp duty, solicitors fees etc
- If the property is not rented you will still have to cover the costs of the mortgage
- Wth My Property Partners there is no mortgage, therefore even if the property remains empty, the fixed costs are minimal compared to having to pay a mortgage
- In the current market even the monthly payments on an interest only mortgage are often too large to be covered by the rent
- In the worse case, if there is a correction in the housing market the value of properties will come down and rental values may also come down. You may find your self in a negative equity situation and your rent may not cover your mortgage. Your property may be threatened with repossession if you can't keep up your mortgage payments. With My Property Partners the only impact would be the level of rent you receive may get lower, but as there is no mortgage your property is safe and you will still generate seom income and can afford to wait for house prices to recover
- On the flip side, if you are able to rent out your property, maintain your mortgage payment and there is growth in the housing market you are likely to generate greater capital gains as you've leverage your money with a mortgage
- If you are able to take out a mortgage, are confident with where the market is heading and are willing to the risks involved then the buy-to-let route may be the right choice for you
… Investing in property funds or collective investment schemes
- Property funds may be purchasing property outright or raising additional funds with your deposits
- You will probably not know where your funds are being invested except at a very high level – e.g. UK Property
- You will most probably be charged a fixed fee every year irrespective of performance – whereas My Property Partners only charges if there are profits
- The fees are likely to be taken from your initial capital if there is no profit in any given year – My Property Partners will never take charges from your invested capital
- You will not be involved in any decision making and day-to-day control will be in the hands of the scheme operator. All decision will be behind closed doors and you won’t have any input into how your money is invested
- You will however, be able to retrieve your invested money when ever you choose
- If you are comfortable with this black-box investment strategy and can bear the associated risks this may be the route for you
- With My Property Partners however, you will be required to be involved in all decision making and you will get the experience of a propety investor
- In this case My Property Partners may be part of your broader investment portfolio as a lower risk investment option
… Investing in funds that purchase stocks and shares
- Similar to property funds, you will not have any insight into where the money is being invested except at a high level, e.g. UK or Asia funds or Technology or Healthcare funds
- Although the investments are managed by experts in the field this is considered a riskier investment strategy than property as the underlying investments are often stocks and shares
- If you are comfortable with this black-box investment strategy and can bear the associated risks this may be the route for you
- In this case My Property Partners may be part of your broader investment portfolio as a lower risk investment option
… Investing in stocks and shares directly
- The returns could be extremely high, but also you could loose your money very quickly
- This is probably one of the riskiest way of investing your money
- If you have the expertise, the time and the risk appetite to invest in stocks and shares then good luck
- In this case My Property Partners may be part of your broader investment portfolio as a lower risk investment option
Now you should know everything you need to know about how My Property Partners works. Have a look at the projects currently being considered.
|
