Yields on buy to let seeing as its all about income
Discussion
As i was going off topic on another thread on pensions thought i would start a new one.
Am I correct in saying the yield is most important factor in a btl esp in a falling market than the pricing.
As house price growth looks to be very minimal and most will probably fall .seeing as we have too many threads about house prices i thought i would start one on yields of btl,.
Im knew to this and intend on buy a btl in the next 12 months hopefully im more interested in the income than capital growth (as it will be minimal at best )
does anyone have advice /tips experience on yields and income .
What are the likely costs of a BTL that will eat away the rent other than mortgage?
Is repayment /over payment the best ? ( I know Groak said it on another thread that repayment is the best and i tend to agree but want to hear anyone who disagrees)
I would be looking at the market of 40k properties that yields about £350 a month or a £60k properties that yields £500 a month witha 25-30% deposit. (anyone own anything similar give me a breakdown of approx costs they have and what profit they make on the rental,)
Thanks
Am I correct in saying the yield is most important factor in a btl esp in a falling market than the pricing.
As house price growth looks to be very minimal and most will probably fall .seeing as we have too many threads about house prices i thought i would start one on yields of btl,.
Im knew to this and intend on buy a btl in the next 12 months hopefully im more interested in the income than capital growth (as it will be minimal at best )
does anyone have advice /tips experience on yields and income .
What are the likely costs of a BTL that will eat away the rent other than mortgage?
Is repayment /over payment the best ? ( I know Groak said it on another thread that repayment is the best and i tend to agree but want to hear anyone who disagrees)
I would be looking at the market of 40k properties that yields about £350 a month or a £60k properties that yields £500 a month witha 25-30% deposit. (anyone own anything similar give me a breakdown of approx costs they have and what profit they make on the rental,)
Thanks
z4chris99 said:
those yields are good btw..
Only because of the property price. What about this? :http://www.rightmove.co.uk/property-for-sale/prope...
No less than £300pcm from DSS
groak said:
z4chris99 said:
those yields are good btw..
Only because of the property price. What about this? :http://www.rightmove.co.uk/property-for-sale/prope...
No less than £300pcm from DSS
groak said:
Only because of the property price. What about this? :
http://www.rightmove.co.uk/property-for-sale/prope...
No less than £300pcm from DSS
I was under the impression you can give control of the flat to the DSS for say 5 years, thereby you get rent paid directly from the DSS rather than the tenant handing over their housing benefit. As a result you are more or less guaranteed the rent is paid but the property may not be in the greatest condition at the end of the 5 years. http://www.rightmove.co.uk/property-for-sale/prope...
No less than £300pcm from DSS
Buying that place for 5k and getting 300pcm for the next five years gives you 18k, obviously some of this will need to be put back into the property but that seems fairly decent unless i'm missing something major here.
Looking into this over the next few months so any help would be much appreciated.
groak said:
z4chris99 said:
those yields are good btw..
Only because of the property price. What about this? :http://www.rightmove.co.uk/property-for-sale/prope...
No less than £300pcm from DSS
groak said:
z4chris99 said:
those yields are good btw..
Only because of the property price. What about this? :http://www.rightmove.co.uk/property-for-sale/prope...
No less than £300pcm from DSS
BoRED S2upid said:
I bet you can't move up in Scotland for properties like this hey Groak? Who says the pavements in london are paved with gold it seems Scotland is the place to be for property at the moment. can't get much cheaper than this.
Oh can't you? LOL!! I've just got TWO (and possibly a third on the way) for NOTHING! (well, I did have to pay the disposer's legal fees...)(...and now await the Attack of the PH Killer Pension Zombies....)
Edited by groak on Wednesday 10th October 15:00
groak said:
Why not? They'd maybe only give you 200pcm tho....
You said no less than £300 earlier? The yield on that property is ridiculous if true, I'm just assuming the associated risk is huge? Otherwise, you're getting a 60% annual yield for a fixed term of 5 years, doesn't seem right to me? Not saying it isn't right, but seems too good to be true. BJG1 said:
groak said:
Why not? They'd maybe only give you 200pcm tho....
You said no less than £300 earlier? The yield on that property is ridiculous if true, I'm just assuming the associated risk is huge? Otherwise, you're getting a 60% annual yield for a fixed term of 5 years, doesn't seem right to me? Not saying it isn't right, but seems too good to be true. HOWEVER: Its normal market rent to a private tenant would be about £300pcm
Its DSS rating would probably be higher. I'm not familiar with Inverclyde's 1 bed LHA ratings, but in Glasgow it would be about £90 a week.
THE CATCH: It's the lower end of a generally deprived area and really couldn't be effectively managed apart from by someone with local knowledge.
THE GOOD BIT: Like most dumpish areas the only way is up. So it might very well be scheduled in the future for some heftily grant-aided repairs and renovations.
THE BAD BIT: Universal Credit. I'd be very cautious about anything at the lower to bottom end just now until we've found out how to survive with UC. Best case scenario: Business as usual. Worst case scenario: UC precipitates a major property crash rather analogous to removing the bottom blocks from a building's structure.
Edited by groak on Wednesday 10th October 23:51
groak said:
Only because of the property price. What about this? :
http://www.rightmove.co.uk/property-for-sale/prope...
No less than £300pcm from DSS
On top of the £5k purchase price, how much would it cost to get it ready for tenants?http://www.rightmove.co.uk/property-for-sale/prope...
No less than £300pcm from DSS
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