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Why Elite Can Help You

At Elite our directors have been working within the property market for over 15 years and their knowledge, contact base and ability to produce and find quality opportunities within the property market allows all of our clients to benefit from their experience. We also understand the professional sporting lifestyle and how different the needs are for professional sports athletes with regards to financial returns and early retirement.

At Elite we produce a specific plan of action with every client relevant to them and their individual circumstances. We take into consideration were they are in their sporting professional life, what they want to achieve through property and the lifestyle they expect after their sporting career finishes. We then build a strategic plan and show each client how over time they can achieve their goals and gain financial security within the property market.

Why should YOU invest in property?

As professional athletes or soccer player it’s a sad fact that off the thousands of players trying to make professional around the UK and the World only the top 5% will make it past the age of 22 and still be in a professional career.

For these lucky athletes and players alike the average professional’s career will span over a short 7-9 years period. This gives us a minimal amount of professional time earning money compared to a well paid doctor or lawyer who has a carer for over 40 years.

It's a fact that 98% of the population will die poor no matter what their career is! As professional athletes our careers are growing shorter and we are living longer, this means we need more money to support us into our maturing age.

Having looked into the sporting pension process and how athletes are supported after retirement most athletes can’t rely on their governing body pension scheme to pay them a good income after retirement. What this means for you is that unless you do something about it now, you will either have to take up new employment in placements you have no desire to be or accept a lower standard of living at an early age. That is unless you do something about it.

You have several options open to you:

  1. You could start a business to generate some extra income.
  2. You could invest in the stock market.
  3. You could invest in property.

Personally I have done all three and I can confidently say that investing in property is far easier, safer and can give a much better return than the other two options.

Property is one of the best investments you can make.
Is it because?..

  • Historically property values have doubled every 10 years?
  • It is a leveraged investment (25% deposit & 75% mortgage)?
  • It provides security in a bricks and mortar based asset?
  • It is a low risk investment (for those that know what they are doing)?
  • There are tax free ways of drawing money out of property?

The list could go on and on and it could be any of the above reasons.

Some people dabble in the stock market and some people are very successful at this. However, the issue is that if you invest £100,000 in shares a rise of 10% means you will earn £10,000. On the other hand – property will earn you £40,000!

How can Investing in Property yield 4x more return than the Stock Market?

If you invest £100,000 in property and use mortgages, then you will be borrowing £75,000 (75%) from a mortgage lender for every £25,000 (25%) you use for deposits. Lets say you use your £100,000 to purchase a properties and the values go up by 10%.

How much have you made? 10%? No, actually you have made £40,000 on your £100,000 investment so a return of 40%!!! Now how many other forms of investment allow you to do that?

Property Investment Wins Every Time

So which would you prefer the 10% in crease in the value of shares or the 10% increase in the value of property? Property wins every time. This is why ‘leverage’ is so powerful.

Property is in such a strong asset class that lending institutions are prepared to lend up to 80% of the value of the property so that you can buy it. It’s astounding that XYZ Bank Plc will lend you 80% to buy a £100,000 house, but they will not lend you 80%, 40% or even 10% to buy some shares in XYZ Bank Plc!

Do the banks know something we don’t? I think they are telling us that over the long term they think property is a safe bet, this is why they will lend you a high proportion of the value of a property at a relatively low interest rate.

UKProperty Value Cycles

In theUKproperty values have always moved in cycles…

  • Property values took a dive in late 2007 falling on average by 25%
  • During 2009 they recovered by about 5%
  • Many experts are suggesting that we have hit the bottom of the market and now is the start of a new cycle
Why Buy Property Now?

There are currently fantastic opportunities available as a result of the credit crunch disaster. The press are proclaiming doom and gloom forUKproperties, but savvy investors realise that now is an ideal opportunity to acquire great properties at bargain prices.

I always try to turn every disaster into an opportunity.

John D. Rockefeller – The world’s first billionaire

Year on year property remains the most reliable and profitable area in which to place your investment funds.

The main advantages gained from investing in property are:

  • Capital growth
  • Rental income
  • Degree of control
  • Lower volatility
  • Tax benefits
  • Hedge against inflation
  • Touch and feel it
  • Capital growth
  • Depositing your money in the bank or investing in fixed interest products does not provide you with any capital growth. If you buy property (or shares), however, you do so expecting that the property will grow in value over time.
Rental income

One of the advantages of owning investment property is that you can start to receive an income almost immediately. Once you have put a tenant into your property, you should receive a couple of weeks’ rent in advance upon signing the lease and then regular payments of rent into the future.

Degree of control

one of the main reasons people decide to invest in property rather than shares is that they have greater control over their asset.

For example, if they want to receive a higher rent, they can upgrade the property. If they want to increase the value of their property, they can renovate, landscape or possibly even sub-divide and create new allotments.

Lower volatility

The other main reason people will buy property instead of shares is that there is less risk in property. They understand that there is also a lower return in purchasing property but they are willing to forsake potential high returns from investing in shares for a stable return from property. They can sleep well at night knowing that the price of their property is very unlikely to plummet overnight, which can happen to the share market.

Tax benefits

Tax is very topical at this time of the financial year, several tax benefits are available to property investors. Using property as security to borrow money to purchase other property allows you to leverage to a greater extent than if you were using a share portfolio as security.

Most lenders will lend up to 80 per cent (and sometimes 85 per cent) of the value of the property being purchased. One of the tax advantages with this greater leveraging is that you can claim a greater tax deduction on the interest charged on the loan.

Any legitimate expense incurred in running your investment property should also be tax deductible. These include travelling to your investment property to collect rent or money paid to a property manager to manage your property on your behalf.

Depreciation of the building may also be claimed as a tax deduction. Buying brand new or a relatively new property allows for the greatest amount of depreciation. Claiming building depreciation is a clever way to increase your cash flow.

You should never buy property (or any asset) just for the tax benefits. Getting a tax benefit should be a bonus, not the sole reason for purchasing.

Hedge against inflation

It has been shown historically in theUKand all over the world that property increases at a greater rate than inflation. Periods of growth can vary but generally speaking in real terms (without inflation) property growth outstrips increases in inflation.

Touch and feel it

When you have a chance to speak to property investors at length, somewhere in the conversation they will state that they like to invest in property because they can see it, touch it, feel it and drive past it.

For many people, investing turns out to be an emotional decision rather than one based on pure numbers and these are the sorts of emotions that make people feel better about investing in property rather than shares.

I believe investors should have a diversified investment portfolio, which includes some property, some shares and some cash. The weighting of the portfolio will often be decided by the knowledge (or lack of it) in a particular asset class. If you want to earn more, you need to learn more!