Rental property return ?
Discussion
jonny70 said:
blade7 said:
Assume the property is mortgage free, value around £140k with rental income around £550 PCM, what would a standard rate tax payer lose in tax and what could be claimed against the tax ie accountant/telephone/maintenance/repair costs etc ? Thanks.
thats not sucha great investment , thats a pretty low yieldjonny70 said:
blade7 said:
What's the risk free alternative with interest rates so low though ?
575 per month on 140 k property isthats about a 4.8% yield .Then you have the agent fees (10%), void periods, building insurance,gas certificate, maintenance and wear and tear , (will it be furnished?)
You may be clsoer to 3% than you think which you can get in the bank/bonds/shares wtih dividends without the agro of having a broken boiler at 10 pm on a friday night etc
Siscar said:
Yes they are. But it's a trade off between risk and reward. Putting money into national savings is as safe as you get but the returns aren't great. Property is low/medium risk and you can get a better return but you can also lose money. Equities can be high risk but can give high return. And so on.
My point is simply that it's a mistake to think of property as being no or very low risk.
Fair point but my original question didn't intend to suggest property was risk free, just what alternatives were. Thanks for your input anyway My point is simply that it's a mistake to think of property as being no or very low risk.
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