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How to Invest Your Equity Release Wisely for a Return of up to 11%

James Middleweek

Published: 20th January 2019

This blog was written by: James Middleweek


At Buy2LetCars, we’re always keeping an eye out for opportunities that will benefit investors. Utilising the equity that homeowners have accumulated over the years presents a great option for investment in Buy2LetCars.

Let’s do the math

In round terms, house inflation is estimated to increase by 2% a year on average. If you’re lucky enough to have bought your property in the 1980’s, you will potentially have seen an increase in the value of your property in excess of 2% p.a.

Let’s look at an example:
Someone who releases, for example £100K equity from their property and invests in Buy2LetCars, pays the £2K advisers commission and then has £98K to invest in seven new cars.

Upon investing, B2LC customers will receive their monthly dividends of £1,871.52 for the first three years, and then a gross final payment of £57,071 in month 37.

£1,871.52 a month for three years is pretty unbeatable in today’s market, as rolling over returned “reduced” capital after three years produces follow on interest. It’s a gross gain of £26,445.72 – an amazing 11%!

 

CALCULATE YOUR RETURNS

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