I have read some people suggesting apartments are better than houses, so I had a look around to see what I could buy as a BTL apartment.
With apartment prices lower than houses, it seems appealing. Some things to note with apartments:
- Service charge can be significant, in this case £100 per month
- There should be no costs for gutters, roof, garden and other outside costs
- Purchase price is much lower than house price for a 2 bed
| Price | £72K |
|---|---|
| Mortgage | £54K@ 3.4% = £153 per month |
| Deposit | £18K |
| Service Charge | Approx £100 per month |
| Rent | £550 per month |
| Management | 9%+VAT = £59.40 |
| Insurance | £13 per month |
| Cashflow | £550 – £59.40 (management) – £153 (mortgage) – £13 (insurance) = + £224.60 per month |
| Return on Cash | 2695 / 18,000 = 14.9% |
This apartment is in a good area, so hopefully demand will be high.
Here is the updated summary
| Type | Deposit | Rent | ROI | Cashflow | |
|---|---|---|---|---|---|
| Property 1 | 2 bed semi | £26.25 | £595 | 13.6% | + £298 |
| Property 2 | 3 bed detatched | £31.25 | £650 | 8.54% | + £305 |
| Property 3 | 2 bed semi | £22.5 | £525 | 16.5% | + £309 |
| Property 4 | 2 bed semi | £24k | £595 | 15.7% | + £314 |
| Property 5 | 2 bed terraced | £6,250 | £450 | 49% | + £257 |
| Property 6 | 2 bed apartment | £18k | £550 | 14.9% | + £224 |
| Total | + £1707 pcm |
I will keep an eye out for any more like this, as the price is good, and the return is OK. Its not amazing, but a good solid buy.
Property Seeds 