Buy to Let Rental Calculations
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3 жыл бұрынPaul chats through some cacluations that’ll help you get to grips with rental coverage on buy to let mortgages. Paul's CeMAP Bootcamp starts today if anyone wants to join. www.archertraining.co.uk/CeMA...
@louiscampion1343 2 жыл бұрын
good vid keep it up
@rbeacham1 2 жыл бұрын
I'm confused as to how these numbers work for the owner. Take your first example but look at it the other way around. £184,000 mortgage at 3.59% = $6,600 annual interest (not including compound interest). £800 a month income. Letting agent takes 20%, taxed at 40%, leaves you with £385 monthly cash in hand, or £4,600 annually. This doesn't pay the interest even if you don't include the letting agent. So how can they lend this much?
@PaulArcher 2 жыл бұрын
The margins are very tight especially if you struggle to rent the place. However, it improves as most landlords increase rents annually and have a handful of properties. It has to be managed really well
@regressionme4u Жыл бұрын
So how would you work out the rental amount for the property as this only shows max loan?
@PaulArcher Жыл бұрын
The open market determines the rent, or the surveyor
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