Ten Year Projection on £90'000 Purchase
Key Assumptions
| Initial Cash Investment | £13'500 |
| Initial Mortgage Loan To Value | 85% |
| Initial Cost Of Property Purchase | £90'000 |
| Initial Mortgage Loan To Value | £76'500 |
| Annual Property Growth | 11.3%* |
| Years | Value of Property |
Value of Initial Investment |
Profit on Original Investment |
% Profit on Original Investment |
Initial Mortgage As % of Value |
| Start | £90'000 | £13'500 | - | 0% | 85% |
| 1 | £100'170 | £23'670 | £10'170 | 75% | 76% |
| 2 | £111'489 | £34'989 | £21'489 | 159% | 69% |
| 3 | £124'087 | £47'587 | £34'087 | 252% | 62% |
| 4 | £138'109 | £61'609 | £48'109 | 356% | 55% |
| 5 | £153'716 | £77'216 | £63'716 | 472% | 50% |
| 6 | £171'086 | £94'586 | £81'086 | 601% | 45% |
| 7 | £190'418 | £113'918 | £100'418 | 744% | 40% |
| 8 | £211'936 | £135'436 | £121'936 | 903% | 36% |
| 9 | £235'884 | £159'384 | £145'884 | 1081% | 32% |
| 10 | £262'539 | £186'039 | £172'539 | 1278% | 29% |
*The 11.3% growth rate reflects the average annual UK property growth rate for the period 1969 to 2005 according to figures from the Communities and Local Government Office.
The above illustration assumes the property rental income is equal to interest payments on the Buy To Let Mortgage and all other outgoings.
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