Overseas Property Investment Examples
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Example 1. Discount to open Market Value
If you buy at 12% below market value and achieve growth of 7% for two years using your money as a 30% deposit for a £100,000 property...
| Invest as deposit of 30% |
£30,000 |
| Mortgage of 70% |
£70,000 |
| Property acquired |
£100,000 |
| True Value if discount of 12% |
£113,636 |
| Growth for two years at 7% |
£16,466 |
| Discount plus growth |
£30,102 |
Your profit of £30,102 represents over 100% of your £30,000 original investment..
Your Return on Capital Invested (ROCI) is therefore a remarkable 100%....in just 2 years! |
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Example 2 – Rental Yield to cover mortgage
How can you be sure that you can afford an investment mortgage?
We offer properties that have a minimum two year rental guarantee
| Mortgage |
£70,000 |
| Yearly Repayments for 20 years at 6.5% |
£6,263 |
| Rental yield on value of £113,636 at 5.5% |
£6,250 |
The guarantees that we negotiate are usually generous and a rental yield of 5.5% is lower than we would normally obtain a guarantee for. Therefore your mortgage costs in this example would be more than covered. |
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“Over the years I have resisted the blandishments of many overseas property companies seeking to have their wares displayed at my office but having seen what Invest in Property 4 Less have to offer I am happy wholeheartedly to endorse their service.”
“Having for many years been looking for an investment property in Spain and having viewed properties in Costa del Sol and the Costa Blanca with many agents large and small, I am overjoyed to have found a local agency I could trust. ”
- Stephen Price
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