Ajay Ahuja Blog Post on Safety and The Dark Side

My mortgage broker made me RICH.  It is true.  She got me mortgages totalling £7.5m over a 10 year period on a property portfolio worth around £15m.

So when I was chasing up on a remortgage I was trying to get she mentioned a new entrant to the market.  When she told me the brief details I have to admit I got a little bit too excited.

Here are the basics:

No minimum value

No 6 month rule

For those who don’t know those 2 bits of criteria mean you can get VERY rich.  It means you can buy high yielding properties with no money.

But here is the bad bit:

The best rate they can offer you is 10.8% borrowing rate!

Now before you think “what a rip off, I’m not going for that” just take a moment.  If you can find a property that rents out for £500 per month for £25,000 then BINGO!  Your mortgage would be around £200 per month and your profit would be £300.

So can you get a property that will rent out for £500 for £25,000? Of course you can.  These are the exact sort of properties I buy and you should buy.  Yes they are UGLY, yes they are in BAD AREAS and yes the make you RICH.

Now if you are new to property investment I suggest you go for the properties that cost £50,000 and buy with a standard buy to let mortgage and borrow at around 4%.  Once you’ve got some experience I reckon you should follow me and go to the dark side……