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DabHand

Mental Rentals

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Following from the Japan thread, l thought it might be interesting to get a snapshot thread going on what people are paying and where Vs house value IO mortgage (6%?).

£795/m

NR1

180k

IO @ 6% £900/m

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2 Bed Flat

Upsatairs is on with RookMatthewsSayers for £139,000, ours is identical.

We pay £475 pcm

IO on £139,000 at 6% is £695

£220 a month in the back of the net!

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Lo

I pay £1,083 a month on rent

Flat worth £300,000

IO repayments over 25years £1500

Money going into ISA each month £700

(another flat in the building identical to mine is just gone on rental markets at 1,143 Per month)

Live in WC1B Bloomsbury.

£417 saving!

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Rent: £750

Value of the flat: 200,000£ (dropping quickly, see property snake)

Service Charge: 2000£ per year.

no brainer.

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Following from the Japan thread, l thought it might be interesting to get a snapshot thread going on what people are paying and where Vs house value IO mortgage (6%?).

£795/m

NR1

180k

IO @ 6% £900/m

Rent PCM: £525

House in B13: ~£200k

Any good?

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Several identical houses sold for £155,000.

Rent £550 pcm; £6,600 pa = 4.3% gross yeild.

IO mortgage - £775 pcm; £9,300 pa.

Rough calculation of the annual loss.

Rent £6,600 after void and agent fees say £5,400; annual upkeep @ say 1% of value = £1,500 so profit before interest £3,900, after interest loss £5,400

If you allow for annual rental growth of say 4% you need to wait 15 years for any sort of profit.

In it for the long term? You bet!

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Rent: 750

Worth: Maybe 220K?

But here's the thing; the landlord split a large flat into two and lives in the other half (250K before the split on the Land Registery - ~ 2003).

So, it looks like a good move on their part (apart from the crazy stuff, like they have to pay for the gas and power because it's still all on one meter)

There could be quite a few like this around, which look crazy but still work really well.

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Flat bought for £142,995 (info from houseprices.co.uk).

Rent £450 a month.

Looking at rightmove there are another 2 to rent in the same development at £520 a month.

So....

142995 IO at 5% = £595.81 and dont forget the nice £47 a month service charge.

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Rent £1,800 (includes cleaner twice a week)

Mortgage on 6% IO would be £4250 with £150k deposit.

As I'm renting I can more easily charge about £300 a month to my company for office space.

So we're in a (currently) £1 million 5 bed property which is costing us about the same as my previous 2 bed terraced.

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Repayment mortgage approx 1000, period 3-bed semi, big garden, property purchased in S.London Zone 6 last year.

Prior to that in the same area I rented:

2005/6 period 2 bed terrace rented for £950 (scabby LLs)

2004/5 a 2 bed 2nd floor "deluxe" new build investor flat rented for £900 (too small, and 2 floors up - never again!)

Current rents, seem kind of similar really, although I note that there is very little cheap rental property around, eg you could perhaps to settle for a 1 bed place as low as £650 a few years back, but everything seems between 800-1000 now.

New build over my road: "deluxe" 2 bed "penthouse" for £280k

2-bed terrace in my road, sold in about 4 days, asking 200k - dont know what it went for yet.

I think snobbery has protected my area from massive HPI, ironically the town is one of the wealthiest in the country too, but the borough has a bad rep. The bargins are out there if you want to see them...

Edited by Orbital

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My LL bought in 04 for 210k!

210k at 4% = £700 IO

My rent is £1050

However, if he was on a fixed deal for 2 years then a 6% remortgage would now equate to £1050 IO pcm :lol:

So that means I am now paying him to pay the bank? :o:lol::blink: Break even @ best!

Edited by me me me

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Rent: 1650pcm

IO mortgage at 6%: 2200pcm

Service Charge: 3.5k!!! :o

The landlord bought at 40% below current market price. Having been screwed over by my last two over mortgaged BTL numpties I am happy to finally have a LL who is actually making money.

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4 bed detached, double gge, large private rear garden, value £250k in nice crime free area. Rent £550 pcm = gross yield 2.64%. No rent increase in 6 years. Cash in bank earning rather more!

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I havn't sold yet but have my eye on a property for rent.

It sold for £540K in January this year.

It came on the rental market for £1350 at that time and has dropped to £1250 last month.

Its a bit out of my league but I am thinking of a cheeky rental offer when I sell. ;)

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My gaff:

£575 pcm,

£169950

=£850 IO mortgage at 6%.

Also, these here

on at £650 pcm and being sold for £190k (950 pcm IO at 6%) by barratt homes.

That's a 300 quid loss per month.

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2 bed ground floor flat (one double, one single, small terrace and garden) - Isle of Dogs, London (not ex. LA, but a private development)

Rent £758 pcm (£175 per week) Has not changed since Jan 2004.

Value.... £250k (as of December) gives IO = £1250 (6%, 30 yrs) Savings of £492pcm

Very conservative value... £200k gives IO = £1000 (6%, 30 yrs) Savings of £242pcm

The savings make it a no brainer... Renting the roof over my head from the market rather than renting it from the bank makes sense.

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Guest The_Oldie

Rent £895pm

Similar house on market for £425K

I make that a yield for my LL of 2.5% :blink:

100% IO mortgage at 6% would be £2,125 per month, or to look at it another way, building society interest of 5.7% on £425K deposit would be £2,018 per month.

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