It's one thing to recommend potential
investments to people looking to get into the buy to let market but what are
the real costs of becoming a landlord?
I spotted a two bed terrace on the market with
Moores Estate Agents for £94,950; this property is just around the corner from
us on Regent Street. It is a busy road
but this property would let for £525 pcm.
It looks like a great potential return on
your investment of 6.6% but what are the actual costs to get into property
investment?
I spoke to Tom James at Thomas Nicholas
Financial Services in Melton and he had a look at what buy to let mortgages are
available this week.
There is a provider currently offering an
80% loan to value buy to let mortgage which would mean a deposit of
£19,000. On a repayment basis over 25
years the cost would be £372 per month.
With an income of £525 pcm this would leave room for covering the cost
of repairs and any tax due. This is at a
3 year fixed rate of 3.29%.
This is a fee free mortgage but there will
be stamp duty to pay (£2850) at the point of purchase along with solicitor
fees.
You would expect rents to rise over the
period of the 25 years so the margins will only improve and you will have the
capital value to help with the pension pot at the end of the term.
If you are considering investing in
property give me a call to discuss the costs involved and follow
www.meltonmowbrayproperty.com for potential investment properties.
Charlotte Baker 01664 569700
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