Sample calculation
Investors normally see between 8-10% net returns with LSH Developments. Below is a sample calculation which shows how a typical investment in student property in Liverpool with us might look, in this instance generating a net return of 8.28%.
Purchase
| Property purchase price | £125 000 |
| Refurbishment costs (inc VAT and fees) | £150 000 |
| Total purchase and refurbishment costs | £275 000 |
Income
| Contract | 52 weeks |
| Students | 6 |
| Rent | £109 |
| Weekly | £654 |
| Annual | £34 008 |
| GROSS YIELD | 12.37% |
Expenditure
| Outgoing | Weekly | Annual |
|---|---|---|
| Maintenance and utilities package (£20pppw) | £120 | £6420 |
| Council tax | £0 | £0 |
| Total outgoing | £120 | £6240 |
| Management fee* | £4998 |
*Management fee is 18% of rental income after maintenance and utilities deductions, inc VAT
Return
| Income | £34008 |
| Outgoings | £6240 |
| Management fee | £4998 |
| Net profit | £22770 |
| NET YIELD | 8.28% |