Rented normally, it costs you £149 a month. That is £1,784 a year, every year you hold it.

Will it pay?Calculator

You top up £149 a month — the mortgage takes 45p of every pound of rent

Borrowing £28,545 less would close that shortfall — which is £28,545 more cash at the start, on top of the deposit.

+£949−£426−£672−£149

Rent inMortgageRunning costsShort by

The rent covers £949 of that — you cover £149

□ service charge not published2 empty weeks a year assumed

What if I change my assumptions?The dials

At the asking price, 25% deposit, 6.25% charged

Try your own numbersLive

You keep-£149/mo

All-in cash£43,752

PaybackNever

Offer−+

Deposit−+

Mortgage rate−+

Rent−+

Worked at 6.25% — 5.50% quoted plus a company premium.

◧ worked out from local rents

What will it cost me to buy?Breakdown

£37,335 + refurb costs

And about £8,920 more over five years, because it loses £149 every month you hold it — before any repair. That already assumes the rent never falls.

£37,335 to buy it

deposit · stamp duty · solicitor · fees~£6,417, unseen

□ works not inspected

What would have to be true?The working

£35,000 off and it stops losing money

At the asking price you feed it £149 a month. At £70,935 the rent covers everything — leaving stamp duty of £3,547 at that price.

offer £70,935

asked £109,000

◧ worked back from the rent■ stamp duty re-bandedrounded down to £5,000 — the rent it works back from is an estimate

Can we trust the rent?Rent evidence

Nearby lettings back this rent

We hold too few nearby asking rents to cross-check this figure, so nothing here confirms it a second way.

+51 more

our bar: 10 within 500 m

our own middle half£902–£998/mo

■ 61 lettings within 500 m□ no nearby asks to cross-checkAdvertised rents, not signed tenancies

What will the rent borrow?Lender test

The rent carries the whole loan — it could fall 19% 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.

£741 needed

of £913 rent

stressed at 7.5%, 145% cover

◧ rent after empty weeks £913PRA-style test

How big is it, really?The plan

Measured off the plan, not by a surveyor 531 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

Edgbaston, B5

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

£3,264 a year in charges for the building, owed even when nobody is living there

The contract the property is sold under sets these charges, and they can go up over the years.

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

■ from the listinglisting last seen 24 Sep 2026

Which strategy wins?The ways to run it

Short-stay let beats Standard rental by £301 a month

Short-stay let also ties up the least cash, £43,752.

Short-stay let+£152 · £43,752 in

55 nearby short-lets within 5.5 km · medium confidence

Standard rental−£149 · £43,752 in

Housing-benefit rent−£402 · £43,752 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) · Guaranteed council rent (no scheme in this borough) · Buy, improve & sell (pays out on sale)

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

What would you walk away with, after 5 years?The five-year sums

−£13,339 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 26% in the price would leave nothing from a sale after selling costs, and you would still owe the lender any shortfall. That is the £43,752 you put in. The 5-year fix runs past this 5-year hold, so the rate reset comes after it.

−£43,752+£124,950−£3,124−£81,750−£9,663−£13,339

Cash you put inSale valueSelling costsMortgageRent lossesYou are down

◧ 2.0%/yr growth assumed