HELPING YOu START INVESTING
WHY WOULDN'T i JUST DO THIS MYSELF?
It’s an understandable questions and one we’ve heard many times in the past – why would I pay someone to help me with my property investing? Our answer is the same every time. We always wish clients the best of luck, guide them in the right direction and arrange a catch up call in 3/6/12 months to see how things are getting on. 90% of the time we get the same responses:
- “I’ve not had the time…..”
- “I’ve been really busy…..”
- “I’m going to wait until next year instead…..”
- “I haven’t found the right property…..”
- “I didn’t know where to start…..”
Unfortunately, property investment is often something that is delayed and overlooked because people simply don’t have the time or expertise. People may have some money set aside for investing but never get round to it! That’s the reason only 4% of Brits currently own a 2nd property but this figure could be much higher.
There are a number of hidden costs and logistical hoops to jump through, as well as the time and travel all over the country required to properly research and source the right properties that most people wouldn’t have considered. Before you know it, it’s been 5, 10, 20+ years and you’re still no closer to owning an investment property and have missed out on years of passive income.
At Endgame Estates we’re here to make sure you actually take that step into property investment. Our expertise mean you are never stung with any unseen charges. We are here to do all of the legwork when it comes to viewing, researching and sourcing properties to find the one that best suits your needs.
fee breakdown
house price & cost financial example
The properties we source normally range in value from £60,000 – £110,000. In the table below we have shown some example costs and returns you would expect with 3 different house price points.
House Purchase Price |
£125,000 |
£100,000 |
£85,000 |
|---|---|---|---|
| Purchase on Mortgage | £31,250 | £25,000 | £21,250 |
| SDLT | £6250 | £5000 | £4250 |
| Sourcing Fee | £4500 | £3600 | £3060 |
| Insurance | £250 | £250 | £250 |
| Gas Safety | £105 | £105 | £105 |
| EICR | £160 | £160 | £160 |
| Solicitor Fees | £1500 | £1500 | £1500 |
| Mortgage Advisor Fee | £750 | £750 | £750 |
| Unknown | £1000 | £1000 | £1000 |
| Total Cost | £45,765 | £37,365 | £32,325 |
| Potential Rental Income | £800 p/m | £700 p/m | £575 p/m |
| Potential Annual Rental Income | £9600 | £8400 | £6900 |
| Potenial Yield | 7.68% | 8.40% | 8.12% |
| Return On Cash | 20.98% | 22.48% | 21.35% |
A BETTER WAY TO INVEST
DETAILED FEE BREAKDOWN
- Sourcing fee 3% + VAT of property value paid upon issue of sale of memorandum
- Management fee 12% + VAT of rental income.
- No income no fee
- Tenant find £399 + VAT
- Tenant set up £249 + VAT
- Maintenance fee 0% we don’t believe in taking a mark up for maintenance
Fixed Costs
- Gas safety & service annually – £105 including VAT
- EICR (Electrical Inspection Condition Report) valid for 5 years – £160 + VAT
- Insurance costs this can vary between £150 to £300, the cost goes down once the property is tenanted
- SDLT (Stamp Duty Land Tax) – 5% of the property value in tax
- Solicitor & search costs vary – £480 to £2,500
- Ground rent – This is payments made to the freeholder of a property.
- Service charge – This is an additional charge for services to the property such as maintenance or concierge.
Other Costs
- EPC (Energy Performance Certificate) valid for 10 years, needs to be a C by 31st December 2025 – £50 – £100
- Carpet whole property – £1,000 to £3,000
- Insulation in loft – £500 to £1,500
- New ideal boiler with 10 year warranty – £3,000 including VAT
- House re-wire – £3,000 to £4,000 + VAT
- Mortgage advisor fees – £750
- Accountant Cost – varies
