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I have £100k - Best possible returns?
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But a classic car, enjoy it and get 20% return! Look at the Ferrari which sold recently!0
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To get a 10% return on a 100k capital investment in property you need to leverage (ie borrow money). If you buy a place for 400k and put 100k down then its possible.
Your 300k loan will cost you £7000 per year to service if you get 2.5% IR which appears to be possible (from a quick google)
Your 400k property might rent for £400 per week which is £20,800
Your gross profit - assuming no tax or outgoings will be £13,800 which is a 13.8% return on your capital of 100k
your net return will depend on your letting costs. You do also need to factor in loan arrangement costs, SDLT and agency fees, but this is by no means a particularly high leveraged return.0
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