50% Gearing Available for Buffalo Properties!
We are now happy to offer 50% finance for overseas investors in Buffalo who buy via Abbotsinch Capital. This makes a big difference to the Return on Investment as Investors will no doubt be aware.
Let us take a typical house – say 253 Gold St, which we’re happy to say has just been reserved. The cost of the house is $31,350. With closing fees $32,000. The rent is $800 a month, and with taxes, etc., it nets down to $585 a month, minus letting and management fee, which brings us to $505 a month, a return on the first year of 19% net. With 50% gearing, a 5 year loan at 10% with a $1000 admin fee, the money invested would be $32,000 – $15,675 plus closing costs say $800 plus loan setup fee $1000 = $17,475. The net rent would be $505 minus the loan interest of $65 (the amortisation is not a cost as its paying down the loan) which equals $440 – giving a net return in the first year of (440×12)/17475 = 30% – In short, the 50% finance increases the Return on investment by 50% !
Please contact us for more details info at abbotsinchcapital.com.