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 | 7.5% |
| 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 | £96'750 | £20'250 | £6'750 | 50% | 79% |
| 2 | £104'006 | £27'506 | £14'006 | 104% | 74% |
| 3 | £111'807 | £35'307 | £21'807 | 162% | 68% |
| 4 | £120'192 | £43'692 | £30'192 | 224% | 64% |
| 5 | £129'207 | £52'707 | £39'207 | 290% | 59% |
| 6 | £138'897 | £62'397 | £48'897 | 362% | 55% |
| 7 | £149'314 | £72'814 | £59'314 | 439% | 51% |
| 8 | £160'513 | £84'013 | £70'513 | 522% | 48% |
| 9 | £172'551 | £96'051 | £82'551 | 611% | 44% |
| 10 | £185'493 | £108'993 | £95'493 | 707% | 41% |
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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