Investment Examples
Leaseback Example
3 Bedroom Semi-Detached house purchased August 2004
| Market Price | £120,000 | 3 Bedroom Semi – Birmingham |
| Purchase Price | £100,000 | 20% Below Market |
| Approx Closing Costs @ | £7,200 | 6% Of Purchase Price |
| Deposit Required | £15,000 | 15% Purchase Price |
| Mortgage | £85,000 | |
| Current Rental | £575 | |
| Mortgage 85% Int Only @ 5.95% pa | £421 | Up to £154 profit per month |
| Investment on Completion | £22,200 | |
| Profit on Completion | £12,800 | |
| Equity on Completion | £35,000 | |
| Current Equity | £53,675 |
Off-plan
2 Bedroom Apartment reserved off-plan in March 2003 – purchase completed December 2003.
| List Price | £169,950 | 2 Bed Apt - Birmingham |
| Discount | £25,493 | 15% Of List Price |
| Discount Price | £144,458 | |
| Reservation Fee | £500 | |
| Approx Closing Costs | £8,498 | 5% Of List Price |
| Deposit Required | £25,493 | 15% Of List Price |
| Mortgage | £118,965 | |
| Current Rental | £750 | |
| Mortgage 85% Int Only @ 5.95% pa | £640 | Up to £110 profit per month |
| Investment on Completion | £34,481 | |
| Profit on Completion | £16,995 | |
| Equity on Completion | £50,985 | |
| Current Equity | £77,433 |
