Consumer unit to replace old fuse box.

[SUNRAY]

Iv'e just updated the accounts spreadsheet for this property and realised it's a year,
Purchace price £140K
Purchase costs and maintenance £7336:47p
Drawn from savings £145K (was earning 3.7% interest so annual interest = £5365)
Accounts started at a £7336:47p debt
At 1 year the balance is £8107:32p (increase of £15443.79)

Basic profit over interest rate is £8107:32- £5365 = £770:85p.

Effective interest of £8107:32 over £145K rate of 5.58%
Potential profit in next 12 months £15443:79 over £145K of 10.65%


I feel the naer sayers are wrong on this one however with no mortgage I am aware I've been very blessed with the figures on this one. Without that I wouldn't have considered buying at this time and the preferential agents selling and rental fees have been a bonus.

Well I have a financial update on this property and I'm very pleased to say the income has continued on a very acceptable level, not quite as predicted due to having to replace the electric hob, however it has returned a profit of £15379:43p which added to £15443:79 is £30823:22p. My predicted interest on £145K based on 3.7% and 5% over the same period of time amounts to £12,883.

In other words by taking £145,000 out of savings I have earned an additional £17,900 and the property value has risen to £165,000, based on an identical neighbouring property sale, therefore my current situation is effectively £37,900 better off than 2 years ago (before income and capital gains tax).

In other words an interest rate of 21%.

I wonder if OP followed the financial advice offered by: flameport, Adam_151 & ebee and sold the property