Buy-to-let
There aren’t many places in the UK where the rental returns allow you to buy with only a 15 or 20% deposit. In Thanet it is possible.
Here’s an example for a 1-bed flat:
Purchase price £80,000
85% mortgage £68,000
Annual interest @ 5.7% £3,876
Annual rental return £5,100
Percentage of interest return 131%
And for a 2-bed house:
Purchase price £130,000
80% mortgage £104,000
Annual interest @ 5.7% £5,928
Annual rental return £7,200
Percentage of interest return 121%
So, the sums work. Your Thanet buy-to-let property will pay for itself while you enjoy your capital growth!
