Glasgow BTL Yield
Discussion
Continuing on from the other thread, I had no idea you could buy property anywhere in the uk that was this cheap.
There look to be decent (on the inside) two bedroom flats to be had for £30-£35k
Looking at the sums:
£35000 Flat =
£26000 Mortgage +
£9000 Deposit
£400 Rent/month -
£60 - 15% Management fee -
£122 Mortgage payment =
£218
£218 * 12 = £2616
£2616 / £9000 * 100 = 29% Yield
Or even £2616 / £10000 = 26% Yield (With fees + paint etc)
This sounds too good to be true?
Obviously there are the risks of no tenants, tenants not paying etc, but with a good management company and well vetted tenants to minimise these risks this seems like an interesting proposition?
Am I missing something?
There look to be decent (on the inside) two bedroom flats to be had for £30-£35k
Looking at the sums:
£35000 Flat =
£26000 Mortgage +
£9000 Deposit
£400 Rent/month -
£60 - 15% Management fee -
£122 Mortgage payment =
£218
£218 * 12 = £2616
£2616 / £9000 * 100 = 29% Yield
Or even £2616 / £10000 = 26% Yield (With fees + paint etc)
This sounds too good to be true?
Obviously there are the risks of no tenants, tenants not paying etc, but with a good management company and well vetted tenants to minimise these risks this seems like an interesting proposition?
Am I missing something?
Sarnie said:
Salgar said:
I don't think that's true, I just found 3 different lenders who have a lower minimum than that.
Really? Who?Not one lender
Natwest = £50k
BM Solutions = £40k
Kent Reliance = £100k
Woolwich = £66k
Abbey = £75k
TMW = £50k
Aldermore = £75k
Accord = £100k
Clydesdale = £125k
Coventry BS = £75k
Leeds BS = £50k
Virgin = £40k
Skipton BS = £50k
Not one lender I've looked at this morning would consider a £35k property.....
25k minimum loan - nothing about value afaik
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