Investments

Investments

 ^{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.}