So whats the % rental yeild in your area then?
Discussion
As above - been looking at the BTL scene recently. I moved from Luton where the rental yield today is around 5.5 - 6% to Gerrards Cross in Bucks where it is around 3.5% at todays prices.
I've just basically calculated:
Yearly Rent divided by purchase price x % I know some people use 10 months to calculate etc but lets keep this simple using the above to get an idea.
Wondered what the rest of England looks like? Are there any websites around which give you this information?
Oops I spelt it wrong in the title
I've just basically calculated:
Yearly Rent divided by purchase price x % I know some people use 10 months to calculate etc but lets keep this simple using the above to get an idea.
Wondered what the rest of England looks like? Are there any websites around which give you this information?
Oops I spelt it wrong in the title
Edited by 535dman on Friday 7th March 16:58
Newish 4 bed town house in Hertfordshire (aprox 15 miles out of the m25) and 30 mins into City of London by train (45 by car)
Gives yield on today’s value of 5.4% (on your formula)
Bought in 2003 for £290k (after incentives)
Rented out at £1500 a month (edge of village but close to lots of big businesses so normally rented to executives or work placement students
Current value £330k (based on offers made)
Have to say capital gain over the last 4-5 years has been massively disappointing at aprox 3.5% - but hey ho this is the south east market (outside the inner circle of London)
So glad didn’t re-mortgage when the estate agents and neighbors were talking of £390k plus values a couple of years ago
Current tenants move out this weekend so now up for sale – this BTL game is not for me much rather see the money tied up in an enjoyable items like a f430
Gives yield on today’s value of 5.4% (on your formula)
Bought in 2003 for £290k (after incentives)
Rented out at £1500 a month (edge of village but close to lots of big businesses so normally rented to executives or work placement students
Current value £330k (based on offers made)
Have to say capital gain over the last 4-5 years has been massively disappointing at aprox 3.5% - but hey ho this is the south east market (outside the inner circle of London)
So glad didn’t re-mortgage when the estate agents and neighbors were talking of £390k plus values a couple of years ago
Current tenants move out this weekend so now up for sale – this BTL game is not for me much rather see the money tied up in an enjoyable items like a f430
Edited by qureshia on Sunday 9th March 08:53
okgo said:
6% In kingston, from some figures I have been dealing with
orly? Just across the river in Hampton Wick/Teddington I'm renting at 3.3% ... 2 double bedroom - god forgive me, "maisonette" - views and communal garden onto the river, hot and cold running OAP neighbours, a garage only smaller. Would be interested to see what could be earning 6% around here.ATG said:
okgo said:
6% In kingston, from some figures I have been dealing with
orly? Just across the river in Hampton Wick/Teddington I'm renting at 3.3% ... 2 double bedroom - god forgive me, "maisonette" - views and communal garden onto the river, hot and cold running OAP neighbours, a garage only smaller. Would be interested to see what could be earning 6% around here.Must find out the average. And obviously It depends who you let it through
okgo said:
Plotloss said:
Going on that calculation I'm renting at 1.17%
Is that good or bad?
Not that I understand it mind you as I couldnt buy the house I live in, even on an interest only for the monthly rental payment.
Thats pretty good for you. Is that good or bad?
Not that I understand it mind you as I couldnt buy the house I live in, even on an interest only for the monthly rental payment.
Not great for him.
I think
Something to remember though - many landlords have owned these houses for years (mine is one of the big London estates and built the house - 150 years ago) so the low rental yield today is immaterial to their actual costs.
okgo said:
ATG said:
okgo said:
6% In kingston, from some figures I have been dealing with
orly? Just across the river in Hampton Wick/Teddington I'm renting at 3.3% ... 2 double bedroom - god forgive me, "maisonette" - views and communal garden onto the river, hot and cold running OAP neighbours, a garage only smaller. Would be interested to see what could be earning 6% around here.Must find out the average. And obviously It depends who you let it through
The main ones that are returning that are the cheap 2 bed flats surrounding the uni.. ( of which there are some going every now and again )
My old manager bought a flat for about 200k on the road behind the main campus..
It let to three students at £1275.. which according to said calculation would be 7.6%..
The problem with teddington is its expensive to buy and it largly still fetches the same kind of amount as something in Kingston which is slightly cheaper to buy..
But I think if you have a student property in the right location it doesnt really matter what the standard is as long as it looks quite nice, and you can get a group of two or three in there that pay the premium..
Because students have a decent amount of wedge these days, and the demand kills the supply in a town like kingston.
But as you say in hampton wick and teddington are not offering the same market as kingston IMO. Neither surbiton, that has another market again.. things are expensive, and they can get the cash because of the rail link.. I am sure my landlord is getting about 6 percent for our place just because its 5 mins from the station the git.
My old manager bought a flat for about 200k on the road behind the main campus..
It let to three students at £1275.. which according to said calculation would be 7.6%..
The problem with teddington is its expensive to buy and it largly still fetches the same kind of amount as something in Kingston which is slightly cheaper to buy..
But I think if you have a student property in the right location it doesnt really matter what the standard is as long as it looks quite nice, and you can get a group of two or three in there that pay the premium..
Because students have a decent amount of wedge these days, and the demand kills the supply in a town like kingston.
But as you say in hampton wick and teddington are not offering the same market as kingston IMO. Neither surbiton, that has another market again.. things are expensive, and they can get the cash because of the rail link.. I am sure my landlord is getting about 6 percent for our place just because its 5 mins from the station the git.
The main ones that are returning that are the cheap 2 bed flats surrounding the uni.. ( of which there are some going every now and again )
My old manager bought a flat for about 200k on the road behind the main campus..
It let to three students at £1275.. which according to said calculation would be 7.6%..
The problem with teddington is its expensive to buy and it largly still fetches the same kind of amount as something in Kingston which is slightly cheaper to buy..
But I think if you have a student property in the right location it doesnt really matter what the standard is as long as it looks quite nice, and you can get a group of two or three in there that pay the premium..
Because students have a decent amount of wedge these days, and the demand kills the supply in a town like kingston.
But as you say in hampton wick and teddington are not offering the same market as kingston IMO. Neither surbiton, that has another market again.. things are expensive, and they can get the cash because of the rail link.. I am sure my landlord is getting about 6 percent for our place just because its 5 mins from the station the git.
My old manager bought a flat for about 200k on the road behind the main campus..
It let to three students at £1275.. which according to said calculation would be 7.6%..
The problem with teddington is its expensive to buy and it largly still fetches the same kind of amount as something in Kingston which is slightly cheaper to buy..
But I think if you have a student property in the right location it doesnt really matter what the standard is as long as it looks quite nice, and you can get a group of two or three in there that pay the premium..
Because students have a decent amount of wedge these days, and the demand kills the supply in a town like kingston.
But as you say in hampton wick and teddington are not offering the same market as kingston IMO. Neither surbiton, that has another market again.. things are expensive, and they can get the cash because of the rail link.. I am sure my landlord is getting about 6 percent for our place just because its 5 mins from the station the git.
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