1 Bed Villa Financial Projection - Samos, Greek Islands.

Examples of Rental income versus outgoings for initial 2 years borrowing 100% property price plus all extras and outgoings
For the following examples We have used the following:
• Mortgage interest rate 4% (current rate as of 1st March 2009 www.pireausbank.co.uk )
• Mortgage figures http://www.bbc.co.uk/homes/property/mortgagecalculator.shtml
• Exchange rate €1.12/£ (www.x.e.com as of 4/8/09)
• Maintenance @ €25 per m 2
• Completion costs 4% (should be less)
*Please note this is an example and mortgage and exchange rates will fluctuate

1 bed villa– Average size 95 m 2
Price = £275,000
Deposit = £82,500
5% cash back on deposit for 2.5 years build = £10,313 (we pay up to 3 years, whichever sooner)
£82,500 - £10,313 = £72,187
On completion
70% balance outstanding = £192,500
30% deposit minus cash-back £72,187 – this is optional
4% extras on completion = £11,000
Furniture = €19,000/£16,964
Total mortgage required = £292,651 (borrowed in mortgage to cover 100% value – only 70% need be taken!)
Repayment 25 years = £18,732 per year (£1,561 per month)

Interest only = £11,712 per year (£976 per month)
8% rental guarantee £22,000 minus maintenance (€2,375/£2,120) = £19,888
Annual Profit for initial 2 years
Repayment £1,148 per annum
Interest only £8,176 per annum