BTL Forecasting Query (Spreadsheet)

[PaulPri]

Hey all, I originally posted here a few weeks back, I was told to read up and learn, so I did. I've put together a spreadsheet with everything I now know about what a BTL costs, what it makes on average and how to finance it. I put together a spreadsheet to give myself a forecast and ended up with a massive -£6k loss in the first year and then +£700 per annum after that and onwards.

Can somebody look over my spreadsheet below and tell me where I'm going wrong or even if i'm right? It won't let me post any link properly: bit.ly/2RjimQg

 

[PostBrexitInvestor]

A couple of things spring to mind straight away:-

1. What does your £5300 annual cost consist of?
2. You have not increased rent year on year

Unless you increase your rent by at least inflation then the spending power of your rental income is falling year on year in real terms. Whether costs will increase, or you may be able to trim them, is also something to consider.

If after all annual costs you can have a little bit to put in the surplus income pot then you are doing well. The real benefits come when you have paid off your mortgage and the rental income, less some expenses, goes straight into your pocket. There may also be opportunities to remortgage if the property value increases and release some capital.

How are you accounting for mortgage interest in light of recent changes? Is the property to be held personally or in a company/SPV vehicle?

 

[lookinginvest]

While not a bad thing, I think you have erred a little too much on the side of caution. I wonder if anyone else has any real life BTL costs?