Mark Campey

Registered with Property118.com
Saturday 21st April 2018

Location
Beverley

Trading Status
Company

Providing essential rental accommodation since
1994

Insures properties through a broker recommended by Property118
No


Latest Comments

Total Number of Property118 Comments: 3

Mark Campey

A month ago
Return on Investment or Capital Employed Formula?

I totally agree with what you are saying. Their is no predetermined return when investing in this way you (well I do) have to take a blended view. I calculate my returns over a rolling 3yr term using actual costs and receipts. We recalculate the capital gains every 5yrs. However this dilutes the return for example; I bought a property for £29500 in 1997 It stands me to £42k now the value is today circa £150k giving a £108k gain subject to CGT should I sell it.
The return is calculated on the basis that at 75% LTV this is giving a return (on this property) of 12.4% using the most recent valuation. Thus reserving the capital return.
As I said this calculation is worked on the last 3yrs costs and income. I treat the capital as a completely separate calculation.
All of the comments on this subject further endorses their isn’t a clear cut formula. You could argue that I should work on my base cost but I see this as distortion as the market value is now much more hence the need to re balance +/- the capital value at set periods of time property is long term investment.... Read More

Mark Campey

A month ago
Return on Investment or Capital Employed Formula?

Reply to the comment left by AA at 13/05/2018 - 10:20
I totally agree with what you are saying. Their is no predetermined return when investing in this way you (well I do) have to take a blended view. I calculate my returns over a rolling 3yr term using actual costs and receipts. We recalculate the capital gains every 5yrs. However this dilutes the return for example; I bought a property for £29500 in 1997 It stands me to £42k now the value is now £150k giving a £108k gain subject to CGT.
The return is calculated on the basis that at 75% LTV this is giving a return (on this property) of 12.4% using the most recent valuation. Thus reserving the capital return.
As I said this calculation is worked on the last 3yrs costs and income. I treat the capital as a completely separate calculation.
All of the comments on this subject further endorses their isn’t a clear cut formula. You could argue that I should work on my base cost but I see this as distortion as the market value is now much more hence the need to re balance +/- the capital value at set periods of time property is long term investment.... Read More

Mark Campey

2 months ago
Return on Investment or Capital Employed Formula?

I work on a capital employed formula.
If you buy a property for £100k and find it at 75% thus putting £25k in as a deposit the rent is £6k pa cost of funds at 4% is £3k cost (insurance repairs etc) £1k leaving £2k this gives you a return of 8% which is liquid.
I’ve had many people over the years Challenge my theory however I’m seing an over all return on my cash of 13.8% geared to 75% which is in my opinion the optimum.
This doesn’t take any +/- in capital valuation into account it’s purely the return on your cash just as you would look at an ISA or other deposit investment.
Hope this helps.
Mark... Read More