Residential Property Investment Proposal

Medium-term Acquisitions - utilising 75% of Shareholders' Capital

Mortgage funds will be raised at competitive rates of interest (typically, currently below 6%) from specialist lenders, for the purposes of holding these properties and renting them out until it is considered appropriate to realise gains before re-investing the proceeds.

Loans will be taken out to the value of no more than 60% of the purchase prices of the properties so as to ensure that interest payments are adequately covered by net rental receipts. 'Gearing' in this way has the beneficial effect of increasing the available funds as well as multiplying any capital growth by a factor of 2.5. Whilst past performance is no guarantee of future trends, growth in Central London property prices has averaged 13.4% over the last seven years (source: Nationwide Building Society).

This would have amounted to 33.5% per annum in the first year if a 2.5 multiplier had been applied, or 319% if compounded over five years. An investment of £30,000 would therefore have grown in value to £95,600 in that time.