Month: December 2013

How to Invest £100,000 in Edinburgh Property


A question we are asked continually and whilst the answer will always vary from client to client dependent upon specific goals and the amount they wish to borrow the example below illustrates what can realistically be achieved.

  • Investment of £100,000
    Borrow £150,000 (60% Loan to Value)
    Purchase a central 1 bedroom flat for £90,000 and a central 2 bedroom flat for £160,000
    Combined gross annual rental income of £14,700 per annum (£500 and £725 pcm)
    Gross Yield of 5.9% on £250,000 (£100,000 investment and £150,000 loan)Combined net, after costs, rental income £11,000
    Annual loan repayments circa £6,000
    Net Profit £5,000 per annum on £100,000
    Net Yield 5% on £100,000 Investment

    With £100,000 invested in good quality buy to let property a net yield of 5% is realistic. This takes no account of capital appreciation which would see the yield improve even further.