Investment Properties UK

This is a typical investment property deal that we source:

Purchase Price £54,000

2 bedroom mid terraced property in NE England.

Currently tenanted on 6 month lease at £75 per week. So this property was bought with furniture and a tenant already in place, therefore no voids! New carpets required - we arranged through our team in the area.

Gross Yield – 7.4%

Management Cost - 10%

Interest only mortgage at 85% LTV, 5.26% interest rate, through one of our recommended brokers who deal with our UK investment property deals.

Monthly Income

Rent - £325

Outgoings

Monthly interest payments - £205.00 pcm

Insurance - £15pcm

Management Cost - £35 pcm

Net Income - £70.00 each month

Total Money In

Deposit 15% £8100

Finders Fee £1400-1600 + VAT (depending how many properties you have bought)

Legals £500

Mortgage £500

New carpets £500

Total £11,000

The areas we target, for our investment properties UK, are seeing an average of 15% capital growth each year, and many are higher!

Therefore on average if put £11,000 into each UK property deal that we promote - what would your return be at end of year 1?

Net income £70 x 12 = £840 per annum

Capital Growth at an average of 12%

ie At start of Year 1 Value £54,000

At end of Year 1 Value £60,480

So Return on Investment would be £840 + £6480 = £7320 - or 67%!!(7320/11000 x 100%)

Of course this is an average - and does not take voids/maintenance into account - but gives you an idea of the potential available in property - in the market we target.

This also shows why capital growth is the key factor when looking to get a strong return on investment.

Maximise your leverage, cover your costs, and target local affordability - and you will see fantastic return of investment.

If compare to the average return at the bank of 4% per annum - you can see why investing in property is so attractive.

We very much believe there are many excellent investment properties UK wide and will continue to source them over the next 5 years.

Next: Recent UK Deals

To discuss your situation, or any of the property deals we have, email us at deals@property-investment-deals.com

Check out our investment properties UK deals!

Recommended Overseas Deals!