How_Money_Works_-_The_Facts_Visually_Explained

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PERSONAL FINANCE

Wealth-building investments

Save

Build a good team Specialize in a type

Buy

Research Look at budget

Maintain the property

Maintenance is essential to preserve

the capital investment. Landlords

must inspect properties on a regular

basis and keep receipts as proof of

work done as well as for tax purposes.

Buyers should compare prices,

risks, and returns for a variety

of properties – both flats

and houses – and consider

numbers of bedrooms.

Protect credit rating

Keep? Sell

Reinvest

Undervalued areas

with signs of growth,

such as new shopping

centres, can be a

good investment.

A mortgage broker and solicitor are

essential from the outset. In addition,

it is important to find an accountant

and a team of tradespeople – even a

property manager can be useful.

It is a good plan to concentrate on one

type of property, such as student

accommodation.

SOLD

The bigger the deposit

the better the chance

of a good mortgage

offer with preferential

interest rates.

Operating expenses

and cost of mortgage

repayments need to

balance rental income

and/or capital gain.

A buyer should get a copy

of their credit report –

usually free online – and

if necessary find out how

to improve their rating.

Interest

Rises (and falls)

in interest rates

can affect cost

of mortgage

repayments.

Finish

DEFAULT ON PAYMENTS – LENDER REPOSSESSES

GOOD MORTGAGE BROKER HELPS FIND A SUITABLE MORTGAGE

INTEREST

When prices stagnate or

increases are minimal, it is worth

keeping a property until the

market improves.

INHERIT MONEY FOR

INVESTMENT

CAN’T AFFORD MORTGAGE REPAYMENTS

HOUSE PRICES PEAK

or Sell?

Whether investing

long- or short-term,

selling at the right

time releases equity

HOUSE PRICES DROP for further purchases.

Choose

mortgage

Before beginning, a

buyer must look at

mortgage options,

confirm their

eligibility, and find

out what they

can borrow.

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