Anne Murray is planning to buy a property, in addition to the family home she and Henry own, for rental purposes. She is considering a property in Bristol costing RM250,000. She has savings of RM70,000, which she will use as a deposit, but will need to borrow the remaining amount for the purchase. She requests you to research and find a suitable buy-to-let mortgage for her.

She also wants to know what income she might expect to get as a return on her investment. Local agents have estimated that the monthly rent may be RM1,850 per month, with agent’s fees for managing the property being charged at 5% of the rent.

Having found a relevant real product for the mortgage, work out an estimation of the relevant costs of renting the property and the net rental income that she might expect to get annually. Anne estimates some of the other costs she will incur as follows:

Repairs and maintenance per year	RM1,700
Property insurance per year	RM395
Surveyors fees	RM375
Solicitors conveyancing fees	RM1350
Gardener	RM1250

Question:

1. Find a real buy-to-let mortgage for Anne and explain the details to her
2. Which of the above expenses can only be claimed against Capital Gains tax?
3. Calculate the net annual income (for income tax purposes) that Anne can expect from her rental property.
4. Calculate the potential return on income from her investment (ROI). What are the two main taxes on a rental property and against which tax can SDLT be deducted?Calculate the SDLT on this purchase.