Every year we spend a week in Wales. My wife, Andi, has family not far from Llandrindod Wells, so when the summer holidays come around, we pack up our bags and head to a little holiday cottage in the countryside. It’s our home away from home, complete with rolling countryside views and a hot tub for the kids in the garden.
I love to travel. Wales might not seem to be very exotic, but it’s still a different country with a different way of doing things. Take recycling as an example. When it comes to recycling the Welsh go all out!
There’s a bin for paper, another for plastic, another for food waste and at least two others that I haven’t quite got my head around yet! The point is they’re pretty big on it. They like to recycle whatever they can.
It got me thinking. You can recycle in the property investment business too. There’s an investment strategy called buy, refurbish, refinance. If you’re an active investor, then it might be a good strategy for you.
The idea is pretty simple. You buy a property that needs some work doing to it. You refurbish it, updating the aspects of the property that will increase its value the most. Then, once it’s done, you get it valued again in its new condition and refinance it at this new higher value.
This allows you to take some of your capital back out of the investment, freeing it up to invest in more properties. It’s effectively a way of recycling your cash so you can continue
to grow your portfolio.
There are various different mortgage products that allow you to do this, some of them will even provide funding for the refurbishment.
As a more advanced investment strategy, it’s not ideal for everyone. But if you think it’s something you might be interested in then give us a call on 01752 905 360 today, and we’ll work out the best strategy for you.