Strategy. Buy and hold

Location. Salford

Personal Portfolio 

Financial Overview

Purchase Price

£93,000

Mortgage deposit 25%

£23,250

Stamp Duty

£2,790

Solicitor Fees

£672

Searches

£321.40

Refurb

£1,200

Broker Fees

£374

TOTAL COSTS

£28,607.40

Cashflow 

Rent 

£600

Mortgage 75%LTV @ 1.99%

£115.67

Insurance

£12

Management Fees

£31.20

Net Cashflow 

£441.13

ROI

18.5%

Market Valuation after 24 months

£125,000

Capital Appreciation 

£32,000

The purpose of this investment was to buy and hold. At the time, we had recently negotiated and purchased another rental property one street away and as we were so confident of the areas pending growth, we decided to repeat the process. 

This was certainly the correct decision and we have been able to benefit from the capital appreciation of two properties in the same area in such a short period of time. 

The cashflow is set to increase as the rental demand is so high in this area and we will be able to increase our rents to follow the market average. 

Although this strategy is not always the most exciting way to invest in property, and it requires investors to leave money in a deal. The days of all money out deals are slowly eroding and this strategy can help investors to reduce their risk.

 

This property is in a great location, has huge tenant demand and has already seen substantial capital growth. Perfect for a armchair investor and people who like to invest for the future. And with a 34.4% capital appreciation in 24 months the future is now!