Lovely Jubbly Jubilee!
Tuesday 24th May 2022
By Patrick Bullick
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Our beloved Queen has been our Monarch for 70 years!
1952 – 2022 even Rodney, of Only Fools and Horses fame, would know that.
What you (and Rodney) might not know, is that whilst doing some research for a project some years ago, I discovered Prime Central London properties had roughly doubled in value every 10 years since the 1950’s when the Queen came to the Throne.
- Buy a Central London property for £1m.
- Borrow £500k.
- Therefore £500k capital invested.
- A decade passes.
- Based on historic performance - possible property price after 10 years - £2m.
- Sell property to pay off debt.
- Net £1.5m.
- Return on capital employed - 200%.
Now, I know that is extra-ordinarily simplistic, and there will be costs and some hassle along the way, plus past performance should never be taken as an indicator of future performance etc etc…
... but try getting that sort of return on stocks and shares.
Probably best to hold it in a company structure so interest can be offset against income before tax.
None of the above is financial advice - for that you need to ask someone qualified, like an IFA. But they won’t like it and will advise you to stay in stocks and shares which they can manage for you.
Pot, Kettle and Black I hear you say. True we would get some fees from you along the way if you buy property.
Raise a Jubilee toast from the cup of compromise and invest in both.
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