The table below shows the figures involved in the purchase of property in the NE and an indication of how they have performed since they were bought. Recently due to doom and gloom news paper headlines, it has become easier to find great deals and buy properties below market value.
| Property | Purchase Price | Date | Rent | Mortgage | Current Value |
| 91 Collingwood St | £75,000 | 24/05/07 | £400 | £289 | £84,000 |
| 100 John St | £72,000 | 30/05/07 | £433 | £268 | £85,000 |
| 21 Palmer St | £49,000 | 29/06/07 | £355 | £282 | £58,000 |
| 175 Park Road | £86,000 | 13/08/07 | £433 | £355 | £92,500 |
| 81 Tweed St | £76,000 | 13/12/07 | £400 | £317 | £84,000 |
| 1 Charlotte St | £75,000 | 07/01/07 | £350 | £272 | £80,000 |
Below is a further breakdown for the figures involved in the purchase of a property. Typical figures for buying with a 15% deposit and 10% deposit are shown.
Purchase Price £72,000
2 bedroom mid terraced property in Stanley, NE England.
Tenanted for £100 per week two weeks after completion.
Gross Yield – 7.2%
Management Cost - 10%
Interest only mortgage at 85% LTV, 5.26% interest rate, Mortgage Payment - £268
Monthly Income
Rent - £433 pcm
Outgoings
Monthly interest payments - £268 pcm
Insurance - £15 pcm
Management Cost - £43 pcm
Net Income - £107 each month
Total Money In Purchase
Deposit 15% - £10800
Finders Fee £1000
Legals £500
Mortgage £0
Redecoration £0
Total £12,300
If you have any queries or are interested in the above, please do not hesitate to contact us.
The above figures were the actual figures used to purchase this property. This property could have been bought with a 90% LTV product. We tend to use these products were possible now to minimise the down payment. The figures for the purchase of this property with a 90% product are as follows.
Purchase Price £72,000
Management Cost - 10%
Interest only mortgage at 90% LTV, 5.39% interest rate, Mortgage Payment - £291
Monthly Income
Rent - £433 pcm
Outgoings
Monthly interest payments - £291 pcm
Insurance - £15 pcm
Management Cost - £43 pcm
Net Income - £84 each month
Total Money In Purchase
Deposit 10% - £7200
Finders Fee £1000
Legals £500
Mortgage Arrangement £0
Redecoration £0
Total £8,700
As you can see, the 90% LTV deal means a slightly higher mortgage payment but reduces the cost of buy by £3600 (12300- 8700).
If you have any queries or are interested in the above, please do not hesitate to contact us or fill out the feedback form below.
