Here are the costs:
Solicitor Fee £650+ VAT (average)
Survey Fee (£364 at the time of refinancing)
Stamp duty only applicable over £40,000 purchase and always 3%.
Insurance annually £160
Landlord registration. 3 yearly
£54 per council area
£11 per property
My wish is to borrow money from personal loan or look for partners to invest together to speed up my investment journey to give it a head start.
As the property in Scotland is relatively cheap, as an overseas investor, you won't be able to borrow money out of just 1 property, you need about 4 properties to make a lump-sum mortgage altogether.
My heart was racing in all directions and I m so much eager to make a start at all costs.
That's why I wrote to my sourcing agent Sarah (Source to Let) today to ask for all the costs we need to bear as an investor. So that I know how much money to raise for my first project and overall for 4 projects to make a mortgage.
In previous blog posts " Getting Started with a Personal Loan" (link), I calculated that if I borrow £20,000 (or HKD200,000) with a £8000 start up fund or deposit. Assuming the rent is £300 per month, after deducting monthly outgoing expenses (MOE), that would leave me £225 per month. Our HSBC monthly repayment is £338 for 5 years.
I would read the figures like this:
Money in the deal
Start up fund £8000
Personal Loan £20,000
Monthly Income
Rent £300
MOE £75
Profit £225
Loan Repayment £338
___________________
Loss £113 ( 5 years) I would read this figure positively!
3 Key Benefits by paying £113 for 5 years:
1. You will officially own the property in 5 years
2. You will get passive income £225 for the rest of your life
3. You will be able to remortage these properties (once you have 4 of them) and finance other project
Solicitor Fee £650+ VAT (average)
Survey Fee (£364 at the time of refinancing)
Stamp duty only applicable over £40,000 purchase and always 3%.
Insurance annually £160
Landlord registration. 3 yearly
£54 per council area
£11 per property
My wish is to borrow money from personal loan or look for partners to invest together to speed up my investment journey to give it a head start.
As the property in Scotland is relatively cheap, as an overseas investor, you won't be able to borrow money out of just 1 property, you need about 4 properties to make a lump-sum mortgage altogether.
My heart was racing in all directions and I m so much eager to make a start at all costs.
That's why I wrote to my sourcing agent Sarah (Source to Let) today to ask for all the costs we need to bear as an investor. So that I know how much money to raise for my first project and overall for 4 projects to make a mortgage.
In previous blog posts " Getting Started with a Personal Loan" (link), I calculated that if I borrow £20,000 (or HKD200,000) with a £8000 start up fund or deposit. Assuming the rent is £300 per month, after deducting monthly outgoing expenses (MOE), that would leave me £225 per month. Our HSBC monthly repayment is £338 for 5 years.
I would read the figures like this:
Money in the deal
Start up fund £8000
Personal Loan £20,000
Monthly Income
Rent £300
MOE £75
Profit £225
Loan Repayment £338
___________________
Loss £113 ( 5 years) I would read this figure positively!
3 Key Benefits by paying £113 for 5 years:
1. You will officially own the property in 5 years
2. You will get passive income £225 for the rest of your life
3. You will be able to remortage these properties (once you have 4 of them) and finance other project