Buying 'Off-Plan' property and Selling Before Completion.
This assumes a 24 month build.
The Purchase Costs
Purchase Price | £150,000 |
IVA Tax | £10,500 |
Total | £160,500 |
Reservation Fee | £2,000 |
30% Deposit | £43,000 |
IVA Tax | £3,150 (30% of total) |
Legal Fees | £1,000 |
Total Deposit | £45,000 |
Total Deposit+Costs | £49,150 |
The Selling Costs
(Selling Prior to Completion)
Selling Price | £225,000 |
Selling Costs @ 7.5% | £16,876 |
The Gain on Investment
Total Gain = Selling Price - Buying Price - Costs
Total Gain £225,000 - £150,000 - £16,879 |
|
= |
£58,125 |
% Gain on investment during term | |
= £58,125 / £49,150 |
|
Gain | 118% |
All figures are for illustration purposes only and are not contractual.
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