The potential risks that are inherent when investing can be intimidating and even off-putting for some. However, having a diverse portfolio can help you significantly reduce these risks and make investing less a game of chance and more a strategic vehicle to increase your wealth over the long term.
This was also true for our clients, London-based couple Hinesh and Reena. They had money in stocks and shares but wanted to spread their risk by investing in buy-to-let property. Their aim was to eventually build up a portfolio of properties so that they had another income stream, aside from their jobs, and didn’t have to work until they were 60.
“We wanted to set a good example to our kids but also create financial security for our future”.
Here, we share their story, their investment journey and their decision to work with Lifestyle Property People.
Joint Venture
Hinesh and Reena decided to invest with their good friend Nihal, pooling resources and minimising their risk at the same time. Teaming up with another person or investing on a ‘joint venture’ basis can be a great option for those who don’t quite have the funds to invest in property themselves or who maybe don’t have the time or knowledge to invest alone. Many of our clients invest with a family member like a parent or a sibling and it can be a great way to get started.
Location
The decision of where to invest was also about diversification for them. All three have their homes in London but with property prices soaring, they needed to invest in a different location where their money could go further.
‘Location wasn’t important to us. It was about the cashflow and capital growth potential’.
Being busy professionals meant that they didn’t have the time to visit or learn about other investment locations, so they needed a hands-off service that they could trust and would take care of everything for them.
Collaboration with Lifestyle Property People
Hinesh had invested with Shiv before, so they all knew about his excellent reputation in helping others achieve great returns through property investment.
‘We didn’t even look at any other property investment services, we knew Lifestyle Property People were the company we wanted to work with’.
After discussing their investment goals and our service with them, the three friends were excited to begin their investment journey in the North.
Using our professional expertise, Lifestyle Property People were able to source a three-bed, semi-detached property for them, in a popular suburb of Leeds which was growing in popularity and had strong rental demand.
After we purchased the property on their behalf, we gave it a light refurb and the house is now tenanted, generating £8340 of rental income every year, making a 7.9% return on investment.
But for Hinesh & Reena, this wasn’t just about creating an extra monthly income. They were looking for a long-term investment option that would provide them with a secure financial future. This property has a capital growth potential of 5% per year so in the future, they will be able to refinance the property, use the equity gained to buy another property and continue building their portfolio, and in turn, their wealth.
“The service from Lifestyle Property People was efficient and the team were approachable. We really liked the way we were kept informed through WhatsApp, received updates all the time on the progress and next steps and could see that deadlines were being met. We’d recommend your service to all our friends.”
If you’re interested to learn more about buy-to-let investing and want to understand how our done for you, hands-free investing service help you and your family create financial stability, just like we did for Hinesh & Reena, you can message us on WhatsApp to find out more.