Despite reports to the contrary, rental returns have remained stable according to the Association of Residential Letting Agents (ARLA) with returns between 4% and 7% with occupancy levels being constant.

Calculating Buy To Let Investments and Returns
The experience of progressively rising property prices confirms people’s belief in ‘bricks and mortar’.

Moribund Stock Market results and troublesome changes in the UK pension industry further cement the desire for a stable and visible Investment.

Investment in property has proved to be Historically a very reliable investment - Like any investment, you need to choose the right path to security – Let us guide you to the correct decisions

Case study
Most people will opt to borrow the majority of an investment property purchase. For this example, the client has bought a property for £100,000 with a £15,000 deposit.

Capital Growth
The property value increases to £125,000 after 2 years.
The client sells and redeems their mortgage of £85,000 leaving a residue of £40,000.

The initial investment of £15,000 has increased to £40,000
(excluding the costs of buying and selling).

Income
The property yields a gross rental income of £650 per month
(£7800 per annum)
The letting costs (management agents, maintenance) accrue to £150 per month
(£1800 per annum)

Mortgage Payment
The client's £85,000 interest only mortgage costs £425 per month
(£5100 per annum)

Need advice?
The Property Banking team are helping many clients purchase second homes and buy-to-lets. Call one of our team on 08704 28 28 29*.

* Lines open Monday - Friday 8.00am - 10pm. Calls charged at local rate. Calls are monitored and may be recorded for training purposes. Operated by Asset Design Limited, authorised and regulated by the Financial Services Authority. Find out more