Now:

Pay £3,800 Reservation fee (takes the property out of the market and fixes the price)

4 weeks:

Pay 1st stage of deposit (10% less the reservation fee) £7,662

Pay the legal and all extra costs (£7,500), making the total payments £18,962

Receive 5% gifted deposit (£5,731) making your equity in the property 15%, the remaining 5% will be delayed until completion!

Nothing more to pay for 2 years until completion at April 2010!

2008:

Nothing to pay

2009:

Nothing to pay

2010:

The property is completed and delivered including A/C at no extra cost!

At this time due to the significantly discounted off plan price and the capital appreciation during construction phase, it is anticipated that the £114,615 buying price will have grown to a property value of £138,684, your equity in the property is now £46,992 and all you have paid is £18,962 giving you more than 147% Return on investment in only 2 years with no monthly commitments!

Now the remaining 5% is due, you have two options:

1.  Pay the outstanding 5% (£5,731) and keep your equity for further growth.
2.  Re-mortgage the property and release equity to pay the outstanding balance and invest the rest in more properties.

Now you have a guaranteed rental income for 10 year to cover your mortgage repayments, so you don’t have to worry about any expenses for 10 complete years, you also don't have to worry about maintenance and finding a tenant.

The rental guarantee is index linked (i.e. Increases every year according to the inflation rate)

The rental guarantee is also insurance backed (i.e. if the tenant fails to pay the rent you will be paid by the insurance company)

You don’t have to worry about your property for the next 10 years until 2020

2020:

The property value is now £359,712 your equity in the property is £268,020 and all you have paid initially is £18,962. this means you have a return of more than 1300% in ten years with no worries!

The above calculations are done using a 10% capital appreciation per year (the area has been averaging 15% + per annum, over the last 5 years, however, we have taken an average of 10% per annum for the future). For more information please refer to "Making money in Property" report.