Buy to Let Gibraltar

This post has been prompted by comments on another thread.
Buy to Let
Water Gardens 2 bed smaller flat.
Purchase price in a letable condition £240,000

Rent £1000 / month        =£12,000
Expenses
Rates  £400
Service Charges  £1100
Insurance   £100
Repairs and Agents fees, Agents charge one month’s rent per let , repairs will depend on many factors including the tenants , but for this exercise let’s put this combined figure at £1250 pa.

So annual income £9150 Taxable

This is assuming continuous occupancy and in order to obtain this a slightly lower rent would be advisable.


£240,000 in the bank.

Government Debentures pay 5% interest

So annual income £12,000 pa, no expenses and Tax free.

The future.
Investing in property has always been looked upon as secure long term, however I do not believe it is likely  that property will increase in value at anything like the rate it did a few years ago.
Money in the bank, the figures above indicate this is the best investment, but what does the future hold for interest rates???