The stock market is not a happy place. £45 billion has been wiped from global company pension funds since the beginning of 2008. And among the world’s 11 largest countries, the UK’s pension schemes have been hit the hardest, with 64% of our long-term assets in equities. Nick Hopkinson, of property investment company Fruitful, doesn’t understand why more of us haven’t diversified into property before. “It’s clearly the best option for long-term capital growth,” he argues.

 

It’s a fair point – a quick look at what’s happened to the value of properties over the last decade can show you that. But isn’t the stock market slump of the last few weeks a telling sign of economic slowdown? Aren’t we told on a daily basis that the property market is falling, and that sellers are worrying and dropping their prices?

 

“Some sellers are,” Nick says, “but you have to bear in mind that the monthly property market figures you read are somewhat misleading. National figures hide major differences in growth because they’re based on averages. Parts of London and the South East, for example, are still growing because of the permanent shortage of supply. So as long as you buy in the right place at the right time, you’ll make a long-term profit. Now is the right time. And with good advice from a company like Fruitful, you’ll find the right place.”

 

We want to know why now is the right time. Do we really want to invest in property in the current climate? “If you’ve got a good credit rating and some capital, then definitely yes,” Nick says. It’s true that the banking system has not collapsed – in fact, the major lenders are already offering competitive mortgages to buyers who have A1 credit status and a deposit. Funds are bound to become increasingly available as the credit crunch unwinds over the next few months, so creditworthy customers will certainly be able to afford to purchase properties.

 

argues Hopkinson. “I can’t stress this enough. If you follow the golden rules and don’t overstretch yourself, now is the time to get into property investment. It’s not a get-rich-quick scenario, but a long-term game-plan to ensure a more comfortable future. And that game-plan should start now. The longer you’re in it, the higher your return.”

 

Nick explains to us the ‘golden rules’ for getting real capital growth in property in the long-term. They are: maximum gearing – that is, using a mortgage as leverage to earn returns on much more than your initial investment; buying in the right locations; and compound capital growth – making money on the entire value of the property over ten years or more, rather than just on your outlay. For Nick, all these elements help to reduce the investment risk and maximise returns.

 

“Follow these,” Nick tells us, “and you won’t get caught out by the short-term fluctuations of the market. The biggest single group of people on the UK rich list consistently generate most of their money through property, regardless of the ups and downs of the market. However, most people just don’t have the time to find, negotiate and manage property investments. At Fruitful, however, we do all that for you. It’s completely hassle-free, since we act as your long-term investment partner, finding you the right property in the right place at the right price. We’ll give you all the information you need to help you form a bespoke ten-year investment plan and build your portfolio.”

 

It certainly sounds convincing. But for those of you who need more proof, there’s an Fruitful networking event on 12^th February, where you can meet other potential investors, as well Fruitful’s current clients, who are the best people to ask about getting started. To find out more about this event, call Fruitful on 020 7409 1055 or go to www.fruitfulproperty.com. These events usually book up early, so get in touch with Fruitful today to reserve your place.

 

As a Management Consultant and former Banker, you’d think Jonathan Fryza and his wife Ruth, a Risk Manager at RBS – with over 50 years experience between them – would be able to invest wisely.

 

“We were already heavily exposed to equities and ‘traditional’ pension investments,” Jonathan explains, “and wanted to benefit from efficient long-term gearing and capital growth in property. We wanted our money to work as hard as we do! But we just didn’t have the time to do this on our own. It was only when we found Fruitful that we were confident to get involved in buy to let.”

 

They have now bought six properties in different locations in and around London through Fruitful, including one next to the new Woolwich Arsenal DLR station, as well as properties in Crawley and Ebbsfleet near Dartford. All have completed successfully and have been let out exactly on plan.

 

“From the start,” Jonathan says, “Fruitful really took the time to understand our objectives and develop a relationship. They’ve become our trusted partner in property investment. But they’re not just nice people – their sourcing strategy makes a lot of sense, their investment research was well laid-out and the financial spreadsheets were very clear and realistic. We only wish we’d started years ago, but without Fruitful’s help we would never have had the time. They just do it all for you.”

 

Jonathan has since introduced several friends and colleagues to Fruitful’s services. “Fruitful are a real people-based business. If you are thinking about investing you may want to go to one of their regular networking events, meet real investors and check this is for real. That’s what we did and we’ve never looked back!”