Buy-to-Let Investment – How Do The Figures Look Now?

02 Sep 2020

Buy to Let Investment Case Study

Historic buy to let acquisition client  – 3 years on – how do the figures look?

Back in late March 2017, I took on a  new client who was looking to invest some money in buy to let. They were completely new to property investment and wanted to make their savings work a bit harder for them. Their budget was around £80,000 – and they were cash buyers. We discussed their requirements and goals and after considering a couple of options we offered on a 1 bed modern flat in Dennistoun in early May. It was a bit tired inside but in a great location, and importantly that meant that potential rental income was around £600 per month.

The purchase price was £71,000, and after a freshen up it went on to the rental market in July 2017. Since then it has had 1 change of tenant and been empty for a total of 7 days.

So how has this stacked up financially for the landlord over the past 3 years?

PURCHASE PRICE £71,000

RENTAL INCOME £22,500

MANAGEMENT FEES £3,000

REPAIRS, INSURANCE AND FACTOR FEES £6,250

TOTAL INCOME £13,250 OVER 3 YEARS (£4,400 PER ANNUM)

That’s a net yield of 6% and the property has increased in value by around £20,000-£25,000.



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