One bed flat – first time BTL is it a good investment ?
I am in a need of any suggestions you may have please.
I am looking for a property for investment, mainly for capital growth but at the same time give me the rental that should cover the mortgage expenses. The sums are below:
Price of property: 310000
Deposit: 124000(40%)
Mortgage rates: 2.29 tracker HSBC or 2 year tracker/fix around 2.19 or little less
Rental: 1200/ month
Service charges: 2000 pa
Property type: 1 bed
I did tried using yield calculator but there are couple of things which I wasn’t sure like mortgage rate which is of course not fixed and rental which is again not fixed so can’t get my rental yield to be exact.
I like the property and it’s very near to station and town centre. Properties in same block was sold for 320000 in April 2014 and if I go before then they were sold for 250k in 2012 and earlier.
Any suggestion if I am doing right in buying it. This is our first time in BTL so very much a possibility that I may take wrong decision 🙂 so please give me any suggestions you have based on your past experience and above numbers.
Many thanks
Kaps
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Member Since January 2015 - Comments: 22
11:12 AM, 4th March 2015, About 11 years ago
Reply to the comment left by “Claudio Valentini” at “04/03/2015 – 10:15“:
Hiya, That’s correct. These are the BTL rates and as my deposit is 40% so probably thats the reason they are low. It is just that if you add up the arrangement fees on a BTL Mortgage for 2 years, then it will eventually be higher than what I quoted above.