Don't be duped into pie in the sky figures that the property may grow by 30 per cent in six months. If it were to donÕt you think that all of the investment banks would purchase every single property on the planet? Of course they don't because the risk is way too high and it's only worth what somebody else is willing to pay for it when and if you find a buyer. Only buy property where there is a clear four per cent plus yield over the mortgage and maintenance payments combined. With this you are 99 per cent certain that nothing will go wrong and the property will always make you consistent money. If you then have a 200 property portfolio making you £200 per property per month, then £40,000 income per month is a completely different story. We help investors acquire properties in tax efficient and growing markets where capital growth is an after thought. The management company is infinitely more important than any hypothetical capital growth, which can only be realised when the investment is disposed of or financed at a higher rate. I only now invests personally in international property in markets that are already established such as New York, Hong Kong, Shanghai, China, Panama and some of the Middle Eastern countries. He believes that yields in these areas can in some cases outstrip capital growth potential and therefore provide a much more secure investment. Imagine if I bought a property in the middle of Bulgaria which has risen by 100 per cent in the past 24 months alone. IÕve already priced myself out of the local resale market and canny investors donÕt want to buy there anymore because of the limited capital growth remaining.

The real high-yielding investments are found in areas of high population and very limited supply. Purchase a hotel room on 5th Avenue in New York; you know the supply is exceptionally limited and you can work out what your yield will be because of sensible comparables from surrounding hotels on the occupancies and their room rates. Rent the property nightly, not monthly, then you reduce your risk of an income hole on a monthly basis. If a room is occupied for 25 nights a month rather than ten months a year, then you only have five to six nights unoccupied and not two months unoccupied leading to a deficit. Bring in an internationally recognised hotel marketing brand and a global reservations system and you are set for a sensible and high-yielding, consistent investment return.

Has London's Time Come And Past?
This simple question by no means has a simple answer. However, it can be addressed by looking at the three types of property markets in London (upper, middle and first time buyer). The house prices in zone one and two in London are soaring with the average cost of a house in excess of £1,000,000. This upscale end of the market is no longer being driven by homeowners but by the high-end investor markets and the new money of the mega-rich. This part of the market attracts investors and an interest rate change of five per cent wonÕt even cause them to bat an eyelid.

The first time buyer end of the market, which is now purchasing in zones three, four and beyond, is experiencing an increase in house prices but over the next few years, the market will begin to correct itself. The part of the London property market that causes most concern is the middle tier-home owners who have made money from the entry level/first time buyer end of the market, invested in buy-to-let and the multi-property landlords.

This section of the market has used the tactic to purchase properties in London with zero cash input and in some cases, a cash back from a property purchase. This artificial market has been tempted to build a property portfolio worth £1,000,000 with no cash input. This is particularly the case in London. Many investment buyers have been enticed into cashless acquisitions' by the developer selling the stock at a 15 per cent discount from the asking and valued price. As a result, the purchaser is able to tell the mortgage company that the purchase price is £100,000, but in reality net price after the developer discount is £85,000. An 85 per cent LTV mortgage package, therefore, leaves £0 deposit deals available.