Rented normally, it costs you £498 a month. That is £5,978 a year, every year you hold it.

Will it pay?Calculator

The mortgage alone costs more than the whole rent — you top up £498 a month

It is £498 a month short. Borrowing £91,966 less would close that shortfall — which is £91,966 more cash at the start, on top of the deposit.

£788 mortgage

£445 running

£764 rent in£498 short

£25 of that is a guess — no service charge published.

□ service charge not published2 empty weeks a year assumed

What if I change my assumptions?The dials

At the asking price, 25% deposit, 6.50% charged

Change any of these 16 and every card on this page changes with it. The 6.50% is the 5.75% quoted plus a company premium.

◧ worked out from local rents

What will it cost me to buy?Breakdown

£65,490 + refurb costs

And about £29,889 more over five years, because it loses £498 every month you hold it — before any repair. That already assumes the rent never falls.

£65,490 to buy it

deposit · stamp duty · solicitor · fees~£8,045, unseen

□ works not inspected

What would have to be true?The search

No offer makes this pay

Even at £116,400 — well below the £194,000 asked — the rent still does not cover the costs. The gap is the rent against the running costs, not the price, so negotiating does not close it.

◧ worked back from the rent■ stamp duty re-bandedtested down to £116,400

Is the price right?Comparables

We can't tell — nothing nearby is alike enough

The dearest sold for 3.9× the cheapest, so the rent has to justify this price on its own.

you'd pay £194,000

£39,999

£40,000

£45,000

£50,000

£83,500

£93,750

£110,000

£128,000

£140,000

£145,000

£145,000

£155,000

£40k£97.5k£155k

£39,999 cheapest£155,000 dearest

12 completed sales, same property type, last 3 years

□ 12 sold nearby, not matched on sizeHM Land Registry Price Paid Data

What will the rent borrow?Lender test

The rent carries £81,061 of the £145,500 loan

That £64,439 is yours to find on top of the deposit. Tested at 125% instead of 145% — a company or a basic-rate taxpayer usually is — the gap is £51,469. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£1,319 needed

more than the £735 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £735PRA-style test

How big is it, really?The plan

One figure, and nothing checking it 447 sq ft

Only the agent’s figure exists for this house. Open for what that means.

□ area unchecked — agent’s own

Is it a good location?Open the map

Liverpool, L3 8HA

No schools in this postcode area and flood risk checking… — open for the map, the schools and the rest.

Article 4Planning permission required to let by the room

■ postcode area, not this address

What could kill thisThe checks

You would need a licence from the council first

Letting without the council’s licence is an offence, and the fee is in no figure here.

2 problems found · 3 came back clear · 2 we could not check · 2 do not apply to this property

■ from council licensing registerlisting last seen 17 Sep 2026

Which strategy wins?The ways to run it

Every way loses money — Short-stay let loses least, at £308 a month

Let it to the council: £1,656 a year less, but they keep paying when it is empty.

Short-stay let−£308 · £73,535 in

131 nearby short-lets within 5.5 km · medium confidence

Standard rental−£498 · £73,535 in

Guaranteed council rent−£636 · £73,535 in

Housing-benefit rent−£745 · £73,535 in

Each row: money kept a month, then the cash it ties up. Not compared: Rent by the room (only 1 bedroom) · Do it up, then remortgage (pays back at the remortgage) · Buy, improve & sell (pays out on sale)

◧ 4 ways, one measureranked on money kept each month, at the asking price

What would you walk away with?The five-year sums

−£36,947 after five years on the cash you put in, before tax on the sale

Less than the same cash would have made in a savings account, after tax on the interest. The savings account’s capital is not at risk; the property’s is. A fall of about 25% in the price would leave nothing from a sale after selling costs, and you would still owe the lender any shortfall. That is the £73,535 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

◧ 2.0%/yr growth assumed