Jump to content
House Price Crash Forum
Sign in to follow this  
Catch22

Case Study In Buy To Let [renting Off The Bank]

Recommended Posts

House goes to Land Reg July 2004. 275K + ST 8.25K + .75K solicitor= 284K ball park.

100% IO mortgage [ just to be able to draw a straight comparison regards cost of buying to renting] @5.5% = £15,620 per annum to rent it from the Bank.

Currently let out at £600 per month = £7200.... after 1 month void [actual] buildings insurance, boiler safety checks, bit of maintenance, and agents 10% management charges, I reckon there's £5,500 nett left.

I know the person who is renting it, only in there because the landlord did not mind a 5 year old child, a dog, a cat , two rabbits [outside in hut] and the gold fish :D Otherwise the renter would not have even considered it . As a building surveyor friend of mine said, its a two bed bungalow in need of flattening and a house building in it's place, but at 284K for the plot the sums don't add up, even if he landlord decided to go down that route.

15,620- 5,500= 10,120 a year to subsidise the tenant........but theres always HPI ...........unless he bought at what I suspect is market peak or their abouts.

Edited by Catch22

Share this post


Link to post
Share on other sites

Join the conversation

You can post now and register later. If you have an account, sign in now to post with your account.

Guest
Reply to this topic...

×   Pasted as rich text.   Paste as plain text instead

  Only 75 emoji are allowed.

×   Your link has been automatically embedded.   Display as a link instead

×   Your previous content has been restored.   Clear editor

×   You cannot paste images directly. Upload or insert images from URL.

Loading...
Sign in to follow this  

  • Recently Browsing   0 members

    No registered users viewing this page.

  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



×
×
  • Create New...

Important Information

We have placed cookies on your device to help make this website better. You can adjust your cookie settings, otherwise we'll assume you're okay to continue.