Before mortgage costs that’s a yearly income of £15,000 on your £110,000 down payment – or a massive 14pc.
Assume mortgage costs of 4pc (£550 per month), meaning your net rental income drops to £700.
Landlords loans dried up after that and have only in the past two years become readily available again and increasingly competitively priced.
How much rent will you need to charge to cover your mortgage?
Steve Bolton, below, a property investment millionaire and founder of Platinum Property Partners, a franchise business for landlords, takes a fairly scientific approach.
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Rents are already very high relative to incomes, suggesting that landlords might not be able to push up rents just because their mortgage costs start to climb.
If you are letting a property for a long period of time you will need a specialist landlord mortgage.
Student flats Many of our flat rentals are perfect for student accommodation, especially further out (have a look at our other area guides)but also some in central areas.
Sharing, and being prepared to accept a slightly lower standard of furnishing or less popular location, all help to keep costs down.
The stock market, as measured by the performance of the FTSE All Share Index, delivered 7pc.