First-time BTL investor seeking alternatives to equity
Cash available: £200,000
Property purchased: £520,000
Our Client
- A young professional, employed in the City and living in Surrey.
Assets
- An existing property in the South East with substantial positive equity
- Small equity portfolio
- ISAs and savings
Reason for Enquiry
- Expressed an interest in buy to let owing to recent publicity
- Considered owning a rental property as a good alternative to an equity portfolio
- Significant equity in own home
- Came to Temples London after a recommendation from a friend
Temples London Role
- Evaluated financial position, needs and aspirations with assistance of IFA
- Independently sourced good investment opportunities in SW11
- Advised on purchase of Yield Plus added-value property
Outcome
- Refinanced own home to raise cash for investment purchase
- Suitable property agreed within 3 weeks
- Temple Field managed the purchase, furnishing and letting of the newly acquired property
Benefits
- Temples London agreed the purchase at £20,000 less than the highest bid
- Gross yield of 6.4% expected
- Capital appreciation expected due to the location close to Battersea Power Station and the new Northern Line underground station due to open in 2020
- Most costs of BTL can still be offset against tax