Buy To Let rented and making a profit
Great news, our Letting Agent has found a tenant and they have moved in today.
So lets do the sums, is this a profitable buy to let property:
- Purchase price = just over £37,500
- Cost of Renovations = £2,700
- Legal Fees = £600
- Council Tax, Electric and Gas whilst empty = £200
Total Outlay = £41,000
Gross Monthly Rental = £350
Gross But to Let Yield = 10.24%
This is a fantastic return on our investment. The property is positively geared, meaning that the rental income is more than the mortgage costs.