Welcome to our May newsletter. This month features a “Buy to Let Property of the Month” which is a live property on the market in Glasgow. We will show you how we would break this deal down as an investor with the type of returns to expect. We will also share our latest property news and a favourite property resource we are using this month.

Buy to Let Property of the Month

We keep a keen eye on the market to help our buy to let landlords source the best possible investment opportunity. Here is our best buy this month and we have done the calculations for you to show how it would make a great investment. The property is a 1 bedroom on Appin Road, Haghill, on the outskirts of Dennistoun, in Glasgow’s East End. It is on with Move Quick Estate Agents and link is below-


http://www.rightmove.co.uk/property-for-sale/property-59668699.html

It comprises: 1 bedroom; bathroom; galley kitchen and lounge. Further benefits include double glazing and gas central heating and the Home Report is £60,000. We manage a property in the building next door with the same dimensions and layout and it has been tenanted at £500pcm since June 2016. If purchasing the property we would analyse the deal like this (all estimates)-

Investment
Purchase Price £60,000 (£15,000 deposit required, £45,000 loan)
Solicitors Fees £1000
Mortgage Advice £200
Stamp Duty (3%) £1800
Light Refurbishment £3000
Total £66,000
Total Capital Invested £21,000

*Assuming a mortgage of £45,000 based on £60,000 purchase price (75% Loan to Value) and repayments over 25 years at 4%

Monthly Income
Rent £500
*Mortgage £150
Factors and insurance £50
Letting agent costs £50
Profit £250

Your annual yield would be your yearly rental income divided by the total purchase and refurbishment costs-
(12x£500)/£66000 = 9.1%
Your return on investment (ROI) would be your yearly profit divided by the initial capital invested-
(12x£250)/£21000 = 14.3%

That is how we would break down an investment to show an example of a BTL purchase calculation. We would also consider other factors such as capital growth and construction type. It is important to look at the condition of the building as well and this property achieved 1 for all communal area sections on the Home Report, it is also factored by Milnbank Housing Association who do an excellent job of looking after the building internally and externally.

If any of readers would like help to analyse a deal or advice on buying/rental appraisal get in contact via info@primitivedesigns.co.uk

Ready, Steady, Let………!

College Street in Merchant City (£1050), Somerville Drive, Mount Florida (£500), Brabloch Park, Paisley (£575) and Moorhill Crescent in Newton Mearns (£600) are just a selection of the properties we found happy tenants for last month.

Somerville Drive and Brabloch Park were particularly popular and both listed on Monday 8th May and reserved within 2 days.

Resource of the Month

We are big fans of the “Property Podcast”. Episodes are released twice weekly and cover investing in the UK property market. It’s free and there is some great content, it can be downloaded in ITunes or listened to via the website http://thepropertyhub.net/podcast/.
Thanks For the Reviews, Referrals and Feedback on New Website……..

In the last month we have had another 3 Google reviews, two from landlords and one from a happy tenant, thanks for leaving these, it is appreciated and good for business! Two existing landlords also referred us to new landlords which we were extremely grateful for.

 

Last months newsletter was well received and we picked up some nice feedback on the new website, everything is working well and we are delighted with it.

Shanta Letting