Post by littleoldlady on Dec 10, 2016 22:28:56 GMT
Aquisition:
Property Price: £55,000.00
Other Costs: £14,120.00
Total Cost: £69,500.00
Disposal:
Projected Sale Price: £75,712.00
Sale Expenses: £2,988.10
Projected Sale Revenue: £72,723.90
Profit: £3,223.90
The projected sale price of £75,000 is an uplift of £20,000 (36%) on the purchase price in just 2 years but nearly all of that gain has been swallowed up by PM's costs. If the Sale price is £70,000 the property will show a loss. I am coming to the view that it is not feasible to expect a gain, net of costs, in just 2 years. I had not envisaged, when I started investing with PM, that their costs would be so high. If the tenant is as good as they say maybe we would do better to wait another year. Anyone who wants out can use the SM.
