Before mortgage costs that’s a yearly income of £15,000 on your £110,000 down payment – or a massive 14pc.Assume mortgage costs of 4pc (£550 per month), meaning your net rental income drops to £700.That’s still a handsome return of nearly 8p on your down payment, thanks to the effect of the borrowing.
Whether you’re looking to rent or buy a flat, it’s still possible to get a cheap flat in Central London.
Ok, so it’s a lot harder to buy cheaply, but it is doable – especially if you’re after a studio or a one-bedroom flat.
We always have a good selection of studio flats for rent and sale on our books in all areas, including the most fashionable areas of W1, WC1, WC2 and so on.
London flats to rent or buy – discover how to make the most of your money As well as value, there are plenty of other reasons to opt for Outlet - see reasons to choose us for buying and reasons to choose us for renting If you’re buying and are looking for a good mortgage deal, then a great place to start is Outlet Money But if none of the flats for rent or sale on the site catch your eye, don’t worry.
Landlords loans dried up after that and have only in the past two years become readily available again and increasingly competitively priced.
How much rent will you need to charge to cover your mortgage?
He then marries this against information about property prices and rents.
Higher than average rents indicate stronger demand in an area.
It was a property they probably had lived in themselves, rather than one chosen deliberately for the purpose of letting.
But landlords who set out specifically to maximise returns can be more discriminating.
1) Manage your borrowing Part of the lure of buy-to-let is the borrowing.