The Real Yields From Buy To Let Investments In A Rising House Price Market In Cambridge

House prices are increasing in most if not all areas of the UK. Rightmove are forecasting an 8% increase in average house prices in 2014. There will be some areas with house price growth well in excess of 10% next year.

Investors who gear up their investments will now start to see significant yields.

Real Example:

£120,000 for a 2 bedroom apartment purchased ready to occupy

£650pcm rent

£90,000 mortgage (75%) on a 2.9% interest only loan.

£31,200 capital employed (deposit and conveyance costs)

£3,053 pre tax annual income representing 9.7% return on capital employed after allowing for all normal operating and letting costs.

If the asset price increases by 10% in the year to £132,000 then the pre tax gain is £15,053 (£3,053 in cash and £12,000 in equity)

48.2% pre tax gain on capital employed in one year!

For more information and no obligation discussion about how to get involved contact the Investment Specialists
Cambridge georgina.gray@belvoirlettings.com01223 352225

Free Sale Advice and Buy to Let Advice

Terry Lucking is the owner and director of Belvoir Cambridge. Terry is proud to have worked in the private rented sector for close to 15 years with thousands of landlords and tenants.

Terry and his team would be pleased to receive calls or emails from landlords considering selling a property with a tenant in situ. They would also be pleased to receive calls from prospective investors.

Belvoir Cambridge ia an accredited and regulated letting agency. They are members of ARLA, Safe agent, Safeagent and the Property Ombudsman. One of the requirements for membership of ARLA and Safe Agent is to have Client Money Protection and all client monies independently audited and accounted for annually.

This article was prepared and written by Terry Lucking owner of Belvoir Lettings Peterborough and Cambridge.

For more information or to ask Terry a question call 07801 865780 or send an email to terry.lucking@belvoirlettings.com