Three Bedroom Investment Flat SW London
2008
|
|
|
|
Purchase |
|
|
£195,000.00 |
|
A |
|
Duties and fees |
|
£3,450.00 |
|
B |
|
furniture |
|
|
£2000.00 |
|
C |
|
Acquisition fee |
|
£2291.25 |
|
D |
|
Renovation cost |
|
£0.00 |
|
E |
|
Renovation fee |
|
£0.00 |
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Total purchase cost |
|
£200,741.25 |
|
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Investment return 2008/9 |
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Weekly
Rent |
|
|
£311.54 |
|
|
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Annual
rent |
|
|
£16,200.00 |
|
|
|
Gross
return |
|
|
8% |
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Expenses |
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|
F |
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Insurance
|
|
|
£250.00 |
|
|
|
Gas an electric tests |
|
£65.00 |
|
G |
|
Documentary costs |
|
£129.25.00 |
|
|
|
Letting
fee@ |
10.00% |
|
£1,833.00 |
|
|
|
Managing
fee@ |
5.00% |
|
£916.50 |
|
H |
|
repairs
say |
2.50% |
|
£405.00 |
|
|
|
Service charges |
|
£250.00 |
|
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Total running expenses |
£3,848.75 |
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|
I |
|
Net Rental Income |
|
£12,351.25 |
|
J |
|
Net Rental income Yield before tax |
6.15% |
|
K |
|
Capital appreciation |
|
4% |
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|
L |
|
Total return before tax |
|
10.15% |
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With Borrowings:- |
75% |
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|
M |
|
Mortgage borrowing |
|
£146,250.00 |
|
|
|
Net rental income before interest |
£12,351.25 |
|
N |
|
Interest
@ |
6.00% |
|
£9,033.36 |
|
|
|
|
|
|
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|
O |
|
Net rental income |
|
£3,317.89 |
|
|
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|
|
|
|
|
P |
|
Net rental income yield before tax |
6.61% |
|
Q |
|
Capital appreciation |
|
16% |
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|
R |
|
Total return before tax |
|
22.61% |
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| |
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| A |
Stamp duty, Solicitors and surveyors fee (estimate). |
|
|
| B |
Basic furniture has not been allowed for but if the property is let furnished
this will be an extra cost |
| C |
Fee for sourcing arranging and negotiating the purchase of the property |
| D |
Estimated cost of the works required |
|
|
| E |
Tate Residential's fee for arranging and supervising the renovation |
| F |
Building and contents insurance if applicable. Leasehold building insurance
is part of the service charge |
| G |
1/2 the Tenancy Agreement Cost. The other 1/2 is paid for by the Tenant |
| H |
This can be completely variable. This is therefore a provisional sum. |
| I |
Gross rent income less total running expenses |
|
| J |
Net Rental Income expressed as a percentage of the Total Purchase Cost |
| K |
Increase in capital value of the property as a percentage of the Total
purchase cost |
| L |
Net income and capital appreciation as a percentage of the total cost of
purchase |
| M |
75% |
of the total purchase cost assumed borrowed |
|
| N |
Repayment of interest only on the Mortgage borrowed. Variable depending on
lenders terms. |
| O |
Net Rental Income with Borrowings |
|
|
|
| P |
Net Rental Income expressed as a percentage of the Investor's capital
invested |
| Q |
Increase in Capital value of the property as a percentage of the Investors
capital invested. |
| R |
Total net rental income and Capital appreciation expressed as a percentage of
the capital invested |
