Our role is to help you choose your investments carefully based on the criteria that suit you. When we’re helping you plan this out, we use a spreadsheet tool we’ve developed that shows potentially how your investment could grow and what impact changes in different variables will have on your wealth accumulation.

 

People are always amazed at this. They had no idea that one small change could impact their wealth so much. Here’s an example.

 

Let’s say you invested £50,000 in property and on a regular basis reinvested the profits in more property of a similar type. If the property grows in value at 7% and all the other variables stay the same, then after 10 years, it’s possible you could have an income from your property of £68,521 each year, tax free. 

 

But let’s say property only grows at 6% a year – just one percentage point lower - and all the other variables remain the same, then your annual tax free income could be reduced to £33,369 a year. That’s a reduction of more than 50% in your potential annual income. 

 

Of course, in practice not all the other variables will remain the same either and you may decide not to reinvest the profits on such a regular basis so you should not assume that you could necessarily replicate these figures. This is used to serve as an illustration of the impact a small change can have on the wealth accumulating in your portfolio. 

 

Some of the variables you can try to control (for example by only buying property with a certain rental yield) and others are outside of your control (such as interest rates). But it’s important you are aware of the impact that any changes are having on the value of your portfolio and the accumulation of your wealth. At Property Investors Road, we help you to plan your portfolio carefully at the start then keep a close eye on it by reviewing your portfolio regularly so you stay on track to meet your financial goals.

 

Email info@propertyinvestorsroad.com

Telephone 01525 634025

Int’l enquiries +44 (0) 1525 634025