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View Full Version : Is this a good BTL investment?



MGS
30-09-2008, 08:48 AM
Hi all,

I am deciding on whether or not to purchase a new B2L property, and decided to ask what everyone thinks of the investment opportunity. I will be advertising the flat myself and believe that it is in a high demand area for rental and should have no problems renting it out for £600pm.

Property Costs
Property- £105,000
Solicitor- £1,100 (estimated)
Furnishings/Redocoration- £3,000 (estimated)

Mortgage
25 years fixed 5.69%, AR fee £1700 (2% based on £85,000 borrowing).

Survey Fee
£195

Advertising/Managing Fees
£55 (I will advertise/manage myself)

The prpoperty itself was sold in 2006 for £150,000 and is a new build 2 bedroom flat built in 2005. Others in the block have been sold this year for £145,000 and £139,000. The flat I may buy is heavily discounted as it is a repossession flat, but everything seems to be in order (not allowed to do bioler/gas checks).

I plan to buy this flat and rent it out for at least 10 years.

Cheers.