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 | 12.5% |
| 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 | £101'250 | £24'750 | £11'250 | 83% | 76% |
| 2 | £113'906 | £37'406 | £23'906 | 177% | 67% |
| 3 | £128'145 | £51'645 | £38'145 | 283% | 60% |
| 4 | £144'163 | £67'663 | £54'163 | 401% | 53% |
| 5 | £162'183 | £85'683 | £72'183 | 535% | 47% |
| 6 | £182'456 | £105'956 | £92'456 | 685% | 42% |
| 7 | £205'263 | £128'763 | £115'263 | 854% | 37% |
| 8 | £230'921 | £154'421 | £140'921 | 1044% | 33% |
| 9 | £259'786 | £183'286 | £169'786 | 1258% | 29% |
| 10 | £292'259 | £215'759 | £202'259 | 1498% | 26% |
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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