Use banks for their traditional purpose, to leverage an investment

Reg Miller, Propertyrush CEO and independent financial advisor of 18 years, believes that in order to achieve a significant return on capital (ROC), people need to take control of their investments, reconsider their use of high street banking products and instead use the banks to leverage an investment.

When you consider the low interest rates on offer at the moment, it is clear people are getting very little real returns for their investment in the banks. However, these institutions do enable a borrower to use their money to generate a profit for themselves in return for interest.

A saver may receive 2.5% interest per annum on their money, while the banks charge borrowers 5.0% per annum – you may think this indicates that banks make 2.5%. In actual fact, banks earn 50% gross profit of the interest generated from using your money, or put another way, they earn 100% mark up on the interest they pay you, for the privilege of using your money.

Using that method, Propertyrush help their clients achieve returns on capital (ROC) of not 2.5% per annum, but up to 45% per annum from buy-to-let property investment.

Propertyrush believes the demand for rental property in the UK represents a safer investment strategy based on solid assets. This view is backed by the apparent growing trend in rental property ownership.

Reg Miller, Propertyrush CEO, explains:

“40% more surveyors reported that rents rose rather than fell last year - the highest level recorded since the Royal Institution of Chartered Surveyors survey began in 1998.”

Furthermore, the Resolution Foundation recently stated:

“In today’s mortgage market, low-to-middle earners would need to save 5 per cent of their income for 45 years to obtain a deposit for their first home, up from just 7 years in 1997.” – Figures which suggest that demand for rental property will continue rising.

The Propertyrush model also helps communities by providing decent homes to tenants - through letting agent Letsrush Ltd, and work to tradesman, at a time when the UK house building industry is subdued by the economic downturn.

“Most people, by default, now invest through products from banks on the high street and have no idea of where their money is actually held, where it’s invested and the wider risks on money markets as world events unfold. That’s why we help our clients reconnect with solid investments.” - said Mr Miller.

For more information about Propertyrush’s services, or their approach to financial investments, visit: www.propertyrush.com or call: 01733 578477.