Market Information

Investment Appraisal - Individual Properties

	1 Bed Apartment Outer London Suburb @£110,000	1 Bed Apartment Central London @ £240,000
Without Borrowings
Rental Income	£675 pcm	£1,517 pcm
X 12 months (less 2 weeks allowance for void periods	(7.08%) £7,788	(7.6% gross) £17,504

Running Expenses (@ 33% - 36%)	£(2,673)	£(6,553)
Net Revenue Return (before tax)	£5,115	£10,951
Net Revenue on Capital	4.65%	4.56
Possible Capital Appreciation of, say	6.00%	6.00%
Total Return before tax	10.65% p.a.	10.56% p.a.
With Borrowings of	60%	60%

Net Revenue Return as above	£5,115	£10,951
Interest on 60% of cost @ 5.49%	£(3,623)	£(7,906)
Net Revenue Return after Interest	£1,492	£3,045
Return on investor's own funds	3.39% p.a.	3.17% p.a.
Possible Capital Appreciation of the property at, say 6% p.a.	£6,600	£14,940
When exposed as a percentage on investor's own funds	15.00% p.a.	15.56% p.a.
Total Return before tax	18.39% p.a.	18.73% p.a.