Sample Investment Proposal for Property

Sample Investment Proposal for Property

Disclaimer: While we endeavour to provide high quality impartial services and tools to enable you to judge whether the property in question suits your criteria, we are by law not permitted to offer you financial advice and do not make recommendation regarding the suitability of the product. We suggest that you show the calculations to a Financial Advisor, who will be able to go with you over the calculations and help you make a decision of whether this is suitable or not.

Sample Investment Proposal for Property

factsheet for property MK125LX

freelance, work from home, homemaker, outsorce,

According to our research, the properties on your street Stratford Road (MK125LX and similar) have been sold for between £174, 950.00 and £186,000.00 within the last 3 years.
The properties available to let within 1/4 mile of your street have asking rents between £795.00pcm and £700.00pcm.
After adjusting for the condition of the property, we estimate that the property is worth £181,230.00 and that its rental potential is around £742.22pcm.
Based on our estimates, your gross rental yield should be around 5.57%, and your net rental yield around 5.29%.
If you would take an interest only 75% LTV mortgage with an interest rate of 7%, your monthly payment would be about £700.00pcm. Thus the property would give you a positive cash flow of £5.11pcm on the first year of ownership per month, £40.37 per month on the second year, £77.38 per month on the 3rd year, £116.25 per month on the 4th year, £448.55 per month on the 10th year to £1,687.76 per month on the 25th year of ownership.
Please note that if you purchase the property at our estimated price and take the 75% LTV mortgage, your deposit will be £40,000.00.
The stamp duty is £ 1,600.00. Other costs of acquisition of the property are legal fees and survey £1,200.00, Finder's fee of 1% (£1,600.00) and bank arrangement fee of around £2720.00, thus total costs payable on top of the purchase price amount to approximately £7,120.00 (4.45% of the purchase price).
According to the information from Home.co.uk, the average property prices in postcode MK12 have increased in the value for 114% from April 2000 to March 2008. The numbers include the latest slump in the property market.
If we extrapolate the figures, and remove 10 percentage points off the past increase for security reasons, the terraced house that you are looking at should be worth around £404,169.96 in February 2018.
We believe that we can acquire the said property for a price within the range of £155,000.00 and £160,000.00 Based on our valuation; we believe that the property is available at a genuine discount of 12% if we buy it at the top of the guide price range.
To join this project, we would require your participation of £80,000.00 (approx. %u20AC105,000.00).
We estimate that the project will be able to place around £ 32,880.00 in speculative investments.

This three bedroom town house in brief compromises; Entrance hall, Kitchen/Diner, Lounge and balcony, a Bathroom, two bedrooms and an En-suite master bedroom, Carport, Off road parking, And rear garden.

Sample Investment Proposal for Property

factsheet for property MK125LX

If you would take an interest only 75% LTV mortgage with an interest rate of 7%, your monthly payment would be about £700.00pcm. Thus the property would give you a positive cash flow of £5.11pcm on the first year of ownership per month, £40.37 per month on the second year, £77.38 per month on the 3rd year, £116.25 per month on the 4th year, £448.55 per month on the 10th year to £1,687.76 per month on the 25th year of ownership.
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Sample Investment Proposal for Property

factsheet for property MK125LX - comments welcome!

Please post your Feedback!

  • Isaac Mass Dec 26, 2011 @ 4:23 pm | delete
    Don't close without a lawyer http://www.isaacmass.com/
  • gloriawilson May 11, 2011 @ 3:16 am | delete
    Hi, You Have done the great work in the southborough MA real estate market, If you are looking to have ALL of the benefits of owning investment properties and NONE of the headaches then you have come to the right place. HeadAcheFreeRealEstate.com was created to provide a truly passive way to invest in rental properties.
  • gloriawilson May 11, 2011 @ 3:14 am | delete
    Hi, Hi, You Have done the great work in the southborough MA real estate market, If you are looking to have ALL of the benefits of owning investment properties and NONE of the headaches then you have come to the right place. HeadAcheFreeRealEstate.com was created to provide a truly passive way to invest in rental properties.

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