Financials

No two properties are the same. No two investors are the same. Nevertheless, we understand you want to see the numbers.

Click on the following links to see the typical cash flows that can be expected.

As a general rule, and as far as UK investment properties are concerned, London will usually provide strong capital growth, but returns which are on the lower side. Invest in one of the smaller cities more than one hour’s drive from London and you will probably get relatively high returns but limited capital growth. Go to a city that is big enough to have scale and good transport links, and you will get something in between. There are always exceptions of course. So if you would prefer to keep your returns in the form of capital growth, then look at London (provided you can afford the entry level prices of course). If you want to maximise your monthly cash flow and are less concerned about capital growth, look at Manchester or Leeds.

Points to consider when looking at these financials

  1. The figures represented here, are intentionally conservative. Undoubtedly for the careful investor, some of the additional acquisition costs can be saved, so too some of the monthly running costs.
  2. The monthly cash flows are based on the assumption of the unit being rented now. Over time, rents and property values will almost certainly increase, which needs to be considered when trying to calculate a long-term ROI.
  3. The mortgages in the UK examples are interest-only, meaning that when the full term of the mortgage is reached, the full amount of the mortgage will need to be repaid or re-negotiated. Most interest-only mortgages however, do allow for part of the principal amount to be repaid each year.

Wellington Quarter

    £ Note
Acquistion cost

Basic purchase price

  417,000 1

Addttlonal costs to acqulre

    38,311 2
   

455,311

 

Funded by:

     

Mortgage

  271,050 3

Equity

  184,261  
    455,311  
Timing of equity      

On reservation & exchange of contracts

 

45,165

4

Further deposit

  20,850  

On completion

  118,245  
    184,261  

Monthly cash flows

     

Monthly rental income

  1,300  

Monthly service fees

      (353) 5

Monthly net income

  947  

Mortgage repayments

      (856) 3

Monthly cash inflow/(outflow)

           91  

Explanatory notes

  1. In this example
    • 6th floor apartment
    • 576 sq ft
  2. Additional costs to acquire
    • Stamp duty (transfer duties) represent 61% of all additional costs
    • Other costs Include legal fees, searches & everything needed to complete on the property, register a bond & find a tenant
  3. Mortgage is assumed to be:
    • 65% of basic purchase price
    • Interest only repayments
    • Interest rate of 3.79%
  4. Timing of equity
    • For clients buying off-plan, the amount paid on reservation will typically be a 15% deposit + reservation fee + minor legal fees. An additilonal deposit of 5% Is then required 6 weeks later, and the balance on completion
    • For clients buying an already-completed unit, the amount paid on reservation will typically be a 25% deposit + reservation fee + minor legal fees. There will then be no additilonal deposit & the balance of equity will be required on completion
  5. Monthly service fees
    • Service charges levied by the appointed property managers
    • Tenancy management fee of 12% of gross rental, plus VAT
    • Annual ground rent, payable to owner of freehold

Bella Vista

  £ Note
Acquistion cost    

Basic purchase price

360,200 1

Additional costs to acqulre

  47,269 2
  407,469  

Funded by:

   

Mortgage

216,120 3

Equity

191,349  
  407,469  
Timing of equity    

On reservation & exchange of contracts

81,193

 

5 months after exchange

72,040  

10 months after exchange

54,030  

On completion

198,045
 
  405,308
 

Monthly cash flows

   

Net monthly rental income

1,287  

Monthly service fees

    (477) 4

Monthly net income

810  

Mortgage repayments

   (843) 3

Monthly cash inflow/(outflow)

      (33)  

 

Explanatory notes

  1. In this example
    • 1 bed apartment
    • 57 sq ft
  2. Additional costs to acquire
    • Transfer tax represents 38% of all additional costs
    • Other costs Include legal fees, searches & everything needed to complete on the property, register a bond & find a tenant
  3. Mortgage is assumed to be:
    • 60% of basic purchase price
    • Principal + interest
    • Interest rate of 2.4%
    • 30 year term
    • drawn down as construction milestones are reached
  4. Monthly service fees
    • Service charge of EUR3.00/sq m/month
    • Tenancy management fee of 10% of gross rental, plus VAT
    • Local taxes & insurance

Kent Street Baths

    £ Note
Acquistion cost      

Basic purchase price

  194,000 1

Additional costs to acqulre

    16,768 2
    210,768  

Funded by:

     

Mortgage

  126,100 3

Equity

    84,668  
    210,768  
Timing of equity      

On reservation & exchange of contracts

 

  24,490

4

Further deposit

  19,400  

On completion

    40,778
 
      84,668
 

Monthly cash flows

     

Monthly rental income

  775  

Monthly service fees

      (185) 5

Monthly net income

  590  

Mortgage repayments

      (398) 3

Monthly cash inflow/(outflow)

        192  

 

Explanatory notes

  1. In this example
    • 1 bed apartment
    • 533 sq ft
  2. Additional costs to acquire
    • Stamp duty (transfer duties) represent 43% of all additional costs
    • Other costs Include legal fees, searches & everything needed to complete on the property, register a bond & find a tenant
  3. Mortgage is assumed to be:
    • 65% of basic purchase price
    • Interest only repayments
    • Interest rate of 3.79%
  4. Timing of equity
    • For clients buying off-plan, the amount paid on reservation will typically be a 15% deposit + reservation fee + minor legal fees. An additional deposit of 5% Is then required 6 weeks later, and the balance on completion
    • For clients buying an already-completed unit, the amount paid on reservation will typically be a 25% deposit + reservation fee + minor legal fees. There will then be no additional deposit & the balance of equity will be required on completion
  5. Monthly service fees
    • Service charges levied by the appointed property managers
    • Tenancy management fee of 12% of gross rental, plus VAT
    • Annual ground rent, payable to owner of freehold

Crossbank

    £ Note
Acquistion cost      

Basic purchase price

  146,000 1

Additional costs to acqulre

    15,196 2
    161,196  

Funded by:

     

Mortgage

  94,900 3

Equity

    66,296  
    161,7196  
Timing of equity      

On reservation & exchange of contracts

 

  41,320

4

Further deposit

  -  

On completion

    24,976
 
      66,296
 

Monthly cash flows

     

Monthly rental income

  743  

Monthly service fees

      (177) 5

Monthly net income

  566  

Mortgage repayments

      (300) 3

Monthly cash lnflow/(outflow)

        266  

 

Explanatory notes

  1. In this example
    • 1 bed apartment
    • 454 sq ft
  2. Additional costs to acquire
    • Stamp duty (transfer duties) represent 32% of all additional costs
    • Other costs Include legal fees, searches & everything needed to complete on the property, register a bond & find a tenant
  3. Mortgage is assumed to be:
    • 65% of basic purchase price
    • Interest only repayments
    • Interest rate of 3.79%
  4. Timing of equity
    • For clients buying off-plan, the amount paid on reservation will typically be a 15% deposit + reservation fee + minor legal fees. An additional deposit of 5% Is then required 6 weeks later, and the balance on completion
    • For clients buying an already-completed unit, the amount paid on reservation will typically be a 25% deposit + reservation fee + minor legal fees. There will then be no additional deposit & the balance of equity will be required on completion
  5. Monthly service fees
    • Service charges levied by the appointed property managers
    • Tenancy management fee of 12% of gross rental, plus VAT
    • Annual ground rent, payable to owner of freehold

Einbecker 47

  £ Note
Acquistion cost    

Basic purchase price

257,840 1

Additional costs to acqulre

  31,624 2
  289,464  

Funded by:

   

Mortgage

128,920 3

Equity

160,544  
  289,464  
Timing of equity    

On reservation & notarisation

28,139

4

Payment 1

19,596  
Payment 2 19,596  
Payment 3 36,579  

Payment 4

  56,976
 
  160,544
 

Monthly cash flows

   

Monthly rental income

900  

Monthly service fees

    (236) 5

Monthly net income

664  

Mortgage repayments

    (605) 3

Monthly cash inflow/(outflow)

        59  

Explanatory notes

  1. In this example
    • Micro apartment
    • 36,9 sq ft
  2. Additional costs to acquire
    • Transfer tax 49% of all additional costs
    • Other costs Include legal fees, searches & everything needed to complete on the property, register a bond & find a tenant
  3. Mortgage is assumed to be:
    • 50% of basic purchase price
    • Principle +interest
    • Interest rate of 2,9%
    • 25 year term
  4. Timing of equity
    • Payment 1: 6 weeks from reservation
    • Payment 2: 6 weeks from reservation
    • Payment 3: +on completion of shell + carpentry
    • Payment 4: on completion, ~Q4 2020
    • Bond is drawn down as construction milestones are reached
  5. Monthly service fees
    • Service charge of EUR3.50/sq m/month
    • Tenancy management fee of 12% of gross rental, plus VAT