I have just read the article about the Gentleman who put a £5 each way bet on Leicester Foxes to win the League at 5000/1! He has walked away with £33,000...
So it got me thinking – what if I had £ 33,000? Spend it on a holiday or invest it in my future?
Would it be enough to be a deposit for a house? A potential investment property that could give me an income and in 25 years be a valuable asset?
If I purchased a property for £133,000 then I would be looking to borrow a 75% mortgage. At this level you have quite a few options in the buy to let mortgage marketplace. For example - At the point of writing this 5th May 2015 there is a buy to let repayment mortgage available with Barclays, 2 year fixed at 1.83%. The repayments for this fixed term are £419.78.
You can play around with the repayment terms and type of mortgages you want to consider using this buy to let mortgage calculator: https://www.mortgageadvicebureau.com/belvoirmeltonmowbray
What could you buy in Melton Mowbray that would let well and give a good rental income. Currently on the market for sale at around that figure you could consider the following 3 bed houses in Melton Mowbray:
Elms Road £134,950 would achieve £625 pcm
Staveley Road £132,500 would achieve £600 pcm
Robin Crescent £136,950 would achieve £600 pcm
The conservative rental incomes are over the initial repayment figure and leave room should the mortgage rates increase. Lenders expect borrowers to renegotiate their mortgages when fixed terms come to an end but even if the % rate increased to 4.5% you would still only be repaying around £570 per month. Still under the rental figures these properties would achieve today. If you take into account the continuing high demand for rental property and the slow levels of new build developments in the area rents will continue to go up. In fact according to new data from HomeLet, in the East Midlands rents are registering a 7.9% rise compared to rents this time last year.
So if you are thinking of purchasing a buy to let then please give me a call. We specialise in letting so we will give you honest advice when it comes to considering an investment property. Call us on 01664 569700 or pop into see me at 27 Burton Street Melton Mowbray.