In the UK there is a problem with the conventional buy to let strategy. Why is there a problem? The problem exists because currently it difficult to obtain buy to let mortgages without putting down a sizable deposit. In the past if you had the deposit for a buy to let you didn't have to prove your income because the banks used to take the market rent in to count as a way to determine whether or not lend the investor the funds to purchase the property. Nowadays, if you have a sizable deposit, then you have to prove your income and even if you get this right, the mortgage company may still decide to pull the plug on you at the last minute.
Many people realise that now is the time to take advantage of low property prices in the UK however the issues above prevent people from taking advantage of all the great opportunities. However, those that are determined to succeed will succeed.
It is possible to acquire properties without battling with the above issues, in fact it is possible to buy without a mortgage, you also get to set your own monthly payments and the best thing is that it can be done without proving your income and without a deposit.
How? By using Lease Options.
Lease Options are a financing instrument in which you can buy a property for a specific price within a specific period of time without the obligation of buying the property.
Lease options are even better because they allow you to structure your own monthly payments and this can be done in a legal, ethical and totally risk-free way.
An example to illustrate lease options in practise:
Option to purchase a property valued at £100,000 at £90,000 (it can be any price, it can be even more than market value)
Option Term: 5 years
Monthly Payments: £400
Market Rent: £750
The above overview shows a property worth £100,000 being purchased using a lease option for £90,000. This means that it can be purchased for £90,000 at any time during the next five years. The buyer will make payments to the seller for £400 and pocket £350 each month for up to five years proving the property is rented.
The price is fixed so if the property rises in value the buyer will benefit from this. The buyer also has option to walk away and not buy the property at the end of the term.
Lease options allow an investor to acquire a property without a deposit, without getting a mortgage and without having a fantastic credit score.
This underground method of acquiring and profiting property is being used by all the investors in the know. It is common in the US and Australia for investors to buy property using lease options however in the UK it is now the new phenomenon.
Amandeep Sandhu is a UK (London based) property investor specialising in acquiring property using no money down strategies. Amandeep has written a home study programme titled "Secrets of Investing in Property without Money, Mortgages and Risk". To find out how you can learn the secrets of investing in property without money, mortgages and risk, visit http://www.leaseoptionprofits.co.uk
Article Source: http://EzineArticles.com/?expert=Aman_Sandhu
