Here are two examples showing letting income and annual expenditure, and the investment equation. All prices are in sterling.

The first projection is based on a one-bedroom flat, in a 1980s purpose-built block at Maynard Court, Staines (West London adjacent to Heathrow). With an asking price of £85,950, and an estimated rental income of £7,800 per year - £650 per month - this property can generate a gross yield of 9 per cent per annum. The annual deductions include an agency fee of £1,170, calculated at 15 per cent of rental income, ground rent at £75, building insurance at £100, administration and legal fees at £130, and electrical safety certificate at £60.

The net annual return from rental income and capital growth from the initial total investment, calculated at 4 per cent, is estimated at 26.13 per cent after one year, 47.24 per cent after 5 years and 71.63 per cent after 10 years.

The second projection is based on a top-of-the-range property in Basil Mansions in Knightsbridge. The asking price is £1.45 million, and the estimated annual rental income is £130,000. Annual deductions include a maintenance fee of £6,000, agency fee at £19,500, administration and legal fee at £130, a gas safety certificate at £50 and electrical safety certificate at £60. The gross yield is 8.97 per cent.

The net return per annum from rental income and capital growth from the initial total investment, calculated at 4 per cent, would be 26 per cent after the first year, 37.31 per cent after the fifth year, 54.19 per cent after year 10 and 130.14 per cent after 25 years.

These figures are just projections, and should be used only as explanatory guidelines.

For further information on the One Stop Property Investment Service Townends can be contacted at 0044 1932 847100 or visit the Townends Website at www.townends.co.uk