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New investor - strugling to see benefit of BTL property vs stocks index tracker in ISA

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For what my knowledge is worth...


I'd be looking to buy a property you can create equity in. A renovation for instance. A general rule of thumb where I am (NW England) is a 20% margin. So there's £20k of equity out there somewhere. 

It could knock years off! 

Then you've equity, a refurbished property that's ready to rent. 


You make your money when you buy. 


Good luck 👍 

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Hi Sam,

In response to your original post. I took a look at your spreadsheet and I think you might have made an error with your 'amount available to extract'. If we take year 8 as an example, the property has increased from 80k to 120k. So you now own an additional 40k of capital. Adding this to the 20k deposit, you own 60k and owe the bank 60k. The minimum deposit for a 120k house at 75% LTV is 30k, so you are able to refinance and extract 30k. Plus the 17k accumulated income, leaves you with 57k total.

On the other hand, you've also started with 2k rent on day zero (or zero capital growth for the first year). You might need to knock these cells down one.

Please correct me if I am wrong. Hope this helps!


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