THE WEST SUSSEX PROPERTY BLOG // LANDLORDS CAN MAKE OVER £160,000 PROFIT FROM BUY-TO-LET
Landlords can make over £160,000 profit from buy-to-let
Landlords can make over £160,000 profit from buy-to-let – but it will take 25 years.
Landlords may be feeling the pressure of the Government’s recent buy-to-let tax clampdown, but research suggests there is still plenty of money to be made over the long term.
Analysis by mortgage lender Kent Reliance found a basic tax paying landlord, placing a typical 30% deposit of £73,908 on a property, would generate a total profit of £265,650 after all costs and taxes over 25 years.
Accounting for the impact of inflation over the period, this represents a profit of £162,000 in today’s money, or £6,475 every year, the research claims.
Assuming that house prices and rents rise in real-terms by a conservative 1% per year – over the 25 year period, Kent Reliance says an average buy to let property would grow in value to nearly £516,000, providing gross capital gains of £269,464. continue reading this Property Eye article, here...