The cost of property investment depends on the type of property investment and value of the property you are buying as well as the way in which you finance the purchase.
If we look at a typical Buy to Let mortgage this will require a 25% deposit plus your acquisition costs such as Land and Buildings Transaction Tax (LBTT) previously stamp duty, conveyancing, valuations.
Example: –
| Purchase Price | £100,000 |
| Deposit | £25,000 |
| LBTT | £4,000 (4% additional property) |
| Conveyancing | ££1000 | TOTAL | £30,000 |
The return on investment If we were to assume an 8% gross rental yield on an interest only mortgage at 4% interest would return you £330 per month / £3960 per annum gross profit. This is a ROI of 13%. If we then consider what the capital growth is per annum so let’s assume 5% then this is an extra £5000. The total return on investment per annum is therefore £8,960 or 30% gross profit per annum.
If you are interested in investing in property then why not contact us on 0141 732 1156 or email contact@fftbravepropertyinvestments.com