03-06-2009, 10:59 AM
Is anyone out there looking for ways to increase the return they have on their savings?
It may sound crazy but although the UK property market is currently falling in value, for those looking for long term growth and immediate double digit returns on cash invested property offers opportunities not seen for some time. Furthermore Ex Pats receive significantly better mortgage deals than UK residents. This is surprising but at the moment a UK investor would probably be offered a rate of 5.69% on a buy to let mortgage while an Ex Pat can get a rate of just 2.89% over BOE base rate, that's 3.39% at present. Yields are between 6 and 9% and it is possible to find deals offered at up to 30% below current value.
Below is a general and conservative investment example:
Property value (in dependant valuation) £200,000
Discount negotiated 25% £50,000
Net price £150,000 (zero stamp duty)
Deposit required 30% £45,000
Mortgage required 70% £105,000
Monthly mortgage cost (25 year repayment) £525
Monthly mortgage cost (Interest only) £297
Gross rental Value per month (7%) £875
15% management and costs £132
Net rental amount per month £743
Monthly surplus (income after interest and costs) £446
Return on cash invested £446 x 12 = £5,352 / £45,000 (deposit) = 11.9%
If anyone is interested in taking advantage of the current UK property market and finding out more and or has any questions please pm me. Any comments, questions welcomed.
It may sound crazy but although the UK property market is currently falling in value, for those looking for long term growth and immediate double digit returns on cash invested property offers opportunities not seen for some time. Furthermore Ex Pats receive significantly better mortgage deals than UK residents. This is surprising but at the moment a UK investor would probably be offered a rate of 5.69% on a buy to let mortgage while an Ex Pat can get a rate of just 2.89% over BOE base rate, that's 3.39% at present. Yields are between 6 and 9% and it is possible to find deals offered at up to 30% below current value.
Below is a general and conservative investment example:
Property value (in dependant valuation) £200,000
Discount negotiated 25% £50,000
Net price £150,000 (zero stamp duty)
Deposit required 30% £45,000
Mortgage required 70% £105,000
Monthly mortgage cost (25 year repayment) £525
Monthly mortgage cost (Interest only) £297
Gross rental Value per month (7%) £875
15% management and costs £132
Net rental amount per month £743
Monthly surplus (income after interest and costs) £446
Return on cash invested £446 x 12 = £5,352 / £45,000 (deposit) = 11.9%
If anyone is interested in taking advantage of the current UK property market and finding out more and or has any questions please pm me. Any comments, questions welcomed.