Some things to consider
Purchase price of house 425,000
Stamp Duty ------------ 40,000
Legal Exps ------------- 2,000
Other ------------------- 2,000
Total -----------------469,000
Rental Income ----------15,000
Less Expenses ----------(2,000)
Mortgage Interest-------(7,000)
Capital Allowances
Other ------------------(1,000)
Rental Income before Tax 5,000
Tax * 42% --------------2,100
Rental Income after Tax 2,900
Remember you will have to pay out the above in order to claim against tax.
The mortgage repayments are over 1,200 on a mortgage of 200,000 over 20 years on a repayments basis (the interest element @ say 3.5% is 7,000)
In the above I have not made allowance for vacancy rates
The 269,000 (225 +40+4) that you have to raise if invested in rabo bank would return about 8,070 gross 4,680 nett at 42%