Rented normally, you'd make about £96 a month.

Will it pay?Calculator

£96 of every £982 is yours to keep, each month

You keep 10p of every pound of rent. The mortgage takes 50p.

£488 mortgage

£339 running

£982 rent in£96 yours

◧ market rent £982 · 8 comps2 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

£40,500 + refurb costs

£10,500 of that never comes back — stamp duty, solicitor and lender fees.

£40,500 to buy it

~£15,951

deposit · stamp duty · solicitor · feeswe haven’t been inside

□ works not inspected

What would have to be true?

Nothing — it works at the asking price

The rent covers the mortgage, the running costs and the tax at the £120,000 asked, so there is no discount this card has to name. A lower price would be upside, not a condition.

◧ worked back from the rent

Is the price right?Comparables

Nothing nearby is comparable — but it is 40% over its 2018 price

The dearest sold for 3.6× the cheapest, so the rent has to justify this price on its own.

you'd pay £120,000

£64,000

£92,000

£95,000

£103,000

£105,000

£116,800

£125,000

£160,000

£165,000

£190,000

£208,000

£232,500

£64k£148.3k£232.5k

£64,000 cheapest£232,500 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 the whole loan — it could fall 14% and still cover it

Your deposit is what limits this one, not the rent. Lenders test the rent at 7.5% and need it to cover 145% of the payment.

£816 needed

of £944 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £944PRA-style test

How big is it, really?The plan

Measured off the plan, not by a surveyor 921 sq ft

The area comes off the plan, not a survey. Open for what that means.

□ area off the floorplan — not a survey

Is it a good location?Open the map

Gateshead, NE16 3HA

1 of 1 school in this postcode area rated Good or Outstanding and flood risk checking… — open for the map, the schools and the rest.

Article 4Not assessed for this address

■ 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 · 1 came back clear · 5 we could not check · 1 does not apply to this property

■ from council licensing registerlisting last seen 16 Sep 2026

Which strategy wins?The ways to run it

Rent by the room beats Short-stay let by £149 a month

Your controls are set to Standard rental — £205 a month behind Rent by the room.

Rent by the room+£301 · £82,451 in

Short-stay let+£152 · £56,451 in

27 nearby short-lets within 5.5 km · medium confidence

Standard rental+£96 · £56,451 in

Guaranteed council rent−£64 · £56,451 in

Housing-benefit rent−£193 · £56,451 in

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

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

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

+£98 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 29% in the price would leave nothing from a sale after selling costs, and you would still owe the lender any shortfall. That is the £56,451 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