The property investment sector has had a turbulent couple of years and many landlords and investors have been forced out of the market by a lack of cashflow and capital. Leading the field of those still flourishing is the Platinum Property Partners property investment franchise, founded in mid-2007, which has recruited 45 high net worth Franchise Partners to date, with more waiting to join. By following PPP’s proven business models and with the support of their expert team of over 33 professional advisors, Franchise Partners are expanding their portfolios and increasing profits through the recession.
The beauty of property as a wealth creation vehicle is not only are you investing in tangible assets which will appreciate over time, but you can also refurbish and let the properties out in such a way that the rental income covers the mortgage, utility bills and maintenance costs, and also gives a significant positive cashflow. PPP’s Franchise Partners are seeing average returns of £1,000+ pre-tax profit per month, per property, even allowing for void periods.
This kind of investing starts with the principle that an investment property is simply a money-making box. How much profit you make in the short and long term depends on what you do with the box: what & how you buy, how you divide up the space inside and how you tenant and manage that space. Anyone can buy a property and wait for its value to go up in line with the market; the skill is in 'beating' the market and bettering those returns.
One Leicester-based Franchise Partner bought a property in Spring 2008 for £225,000. He spent £60,000 refurbishing it to the PPP model, and it now delivers over £4,000 a month in rental income, with over £2,500 pre-tax profit. The property has recently been re-valued at £335,000 - that’s an increase in asset value of £110,000 during a national market slump!
Maximising profit and establishing a good stream of passive income from property is a simple concept to understand, but not an easy strategy to implement. However, for smart property investors who surround themselves with the right experts and professionals, 2010 is going to be another superb year!
