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Investments

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 Welcome to AAS Investments and Consultancy Ltd

AAS Investments and Consultancy Ltd has been established since the late 1990's, during this time the company has nurtured a diverse property portfolio including, flats, offices, restaurants, shops and houses. Properties are located in Wales and the South West with our head office in Bristol.

  

 

Reasons for Investing in the UK

A primary reason for investing in the UK is that the investment is safe, while the market trend in the long run is continuously upwards, other reasons include:

  • The population is growing and affluent
  • The UK have one of the largest economies
  • Average property prices have risen in excess of 6% pa since the early 80's
  • There is currently a shortage of properties demand is outstripping supply

Types of Income

  • Capital growth, how much the asset appreciates over a given period
  • Revenue income

Measures

There are indicators that assist in decision making, a good Return on Investment (ROI) is 10% while a very good ROI is above 12%. Regardless if you look at the financial aspect in isolation the opportunity cost compared with earning interest is considerable. However, risk needs to be factored in when making such comparisons

A further aspect that has helped the buoyant market are very favourable interest rates, interest rates have remained low for several years. Furthermore, there are very good 2 and 5-year fixed rates. As an example, in the late 70's the Bank of England base rate was 17%, since 2009 the rate has been 0.5% dipping to 0.25% in 2016 and rising in 2018 to 0.75%

Hence, with low interest rates, high ROI, combined with the duel income aspect, as demand is outstripping supply, investing in property represents a prudent choice.

The gearing ratio is also very important for long term stability. The gearing ratio can be described as a measure of financial leverage that indicates the degree to which a firms operations are funded by equity compared with creditors. AAS Investments and Consultancy Ltd, if the assets were revalued has a current gearing of 6.7% providing confidence and sustainability for the future.