BTL Returning soon.....

_bankrupted

Just saw this in the window whilst out walking.

And rents for that type of property in the area are £600 pcm. (£7,200 per year)

50k in the bank will get you about £1000 (less tax) which could be 40% depending upon circumstances.

The other scenario is that rents must start falling dramatically. There can't be many (sensible) working people unable to secure the mortage on that type of property.

socrates

Seems a good deal - wondering about the lease and service charges.

Like I have said anything 10% yield and up is worth buying (in the current market)

Wonder how long its been on the market, looks pretty good nick.

lil'H

you are only buying a 40% share of this flat, soyou wouldn't be able to make that kind of money renting it out as you more than likely won't be allowed to let it.

socrates

Sorry did not read it properly - nor did the OP by the looks of it - yet another wasted thread!

Perhaps thats why he went bankrupt

_bankrupted

Ok I missed that it was 40% shared ownership. It does not state this on the main page, or in the estate agents window, I thought it sounded very cheap..

But still £135k (or 120k if you neogatiated hard) as cash in the bank would generate around £2,400 per year gross. Still 3 times the income if you bought it BTL.

ManAtHome

Might do if you've come into £120k in the last 4 months or so, but 6% wasn't that difficult in 1-5 year savings accounts summer 07 to autumn 08... (with no capital loss).

Cozworth806

However think about the cost of an interest only mortgage for this place, or anything else that is around £100k (maybe £450pm?) which could pretty easily by matched or exceeded by rental income so I would not be at all surprised that assuming that the investor has some ready capital then why wouldn't you go looking for potential bargains to snap up.

socrates

Investors are only interested in proper bargains @ 10% yield - repos that need no work just rent out and start earning.