3 ms·
Usually with property rentals you're looking to just cover mortgage, taxes, maintenance, insurance and hope that you make money on appreciation.
by sehugg 11y ago
Usually with property rentals you're looking to just cover mortgage, taxes, maintenance, insurance and hope that you make money on appreciation.
- gutnor 11y agoYou don't really need to make money on appreciation, you need to make profit. If you have a mortgage and the rent cover the charges - you only need to beat inflation on the cash investment. For a simple example [x], I know people in London that got a 105% mortgage around year 2004 and the rent has always covered 100% of all the costs. Assuming it continues that way for another 15 years, anything they can sell the property for is going to be pure profit. [x] I was happy to have something to eat in 2004, but I don't think those 100%+ mortgage were accessible to buy-to-rent property. So I guess that is technically against your mortgage policies and theoretically has a small risk to have the bank suing you for compensation.