1) Buying a 1 bed central Edinburgh flat for 90k and central Edinburgh 2 bed for 160k.
2) These would give net rents of £500 & £725 pcm. £1225 total pcm. £14,700 per annum.
3) Assuming you put down £100k in total then you would borrow £150k (60% Loan to Value).
4) This equates to a gross yield of 5.8% on £250k. This is reasonable yield figure to work on for quality Edinburgh property.
4) Loan repayments would be circa £6750 per annum.
5) Net rent £11,000 per annum after all costs ie management, insurance & repairs.
6) Net profit £4250 per annum on £100k investment. 4.25% yield.
7) With 100k invested in the right flats with 3% growth per annum you would obtain 7.25% yield.
You can see more on our site at www.investmentpropertyagency.co.uk.
With most pundits predicting a price rise when the Government Help to Buy is extended to pre-owned property next year, it looks like a good time to get back into smaller residential property investment.