Buy-to-Let
Investment Case Study
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1-Bedroom Flat in Brentford
1-Bedroom Flat in Brentford
Property Overview
Property Overview
Location: Brentford, London
Property Type: 1-Bedroom Flat
Purchase Price: £400,000
Estimated Monthly Rent: £1,950
Financial Metrics
Financial Metrics
Annual Rental Income
£1,950 × 12 months
£23,400
Gross Rental Yield
(£23,400 / £400,000) × 100
5.85%
Annual Expenses
20% of Annual Rental Income: £23,400 × 0.20
£4,680
Net Annual Income
£23,400 - £4,680
£18,720
Mortgage Amount (75% LTV)
£400,000 × 0.75
£300,000
Annual Mortgage Interest
£300,000 × 0.03 (assuming 3% interest rate)
£9,000
Total Cash Invested
Deposit (£100,000) + Stamp Duty (£10,000) + Legal Fees (£1,500)
£111,500
Net Income After Interest
£18,720 - £9,000
£9,720
Return on Investment (ROI)
(£9,720 / £111,500) × 100
8.72%
Investment Insights
Investment Insights
Gross Rental Yield: 5.85%
Net Rental Yield: 4.68%
Return on Investment (ROI): 8.72%
These figures suggest a potentially profitable buy-to-let opportunity in Brentford, offering a balance between rental income and investment costs.
*Note: Calculations are based on estimated figures and current market conditions. Actual results may vary. It's advisable to conduct thorough due diligence and consult with financial advisors before making investment decisions.*
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