Wanted investment property with 10% + rental yield
Wanted investment property with 10% + rental yield
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Work-Shy-Wanabe

Original Poster:

1,548 posts

257 months

Thursday 14th August 2008
quotequote all
As the title says I looking for some buy to let houses with a rental yield of 10% or more. Preferably those with tenants and already providing an income. Anybody have any for sale or able to recommend and area were there in abundance and easy to let?

I have been looking in Leeds at student properties but its not the best time of year, with those that fitted the bill not having any tenants for the following academic year agreed yet. Whether that because of lazy sellers I dont know.

johnnywb

1,631 posts

239 months

Thursday 14th August 2008
quotequote all
There's going to be a high level of risk associated with that kind of return, but things are improving.

I specialise in commercial retail investment at the moment and yields are moving out, for example you usde to have to pay 4% for some investments, today the same investment is closer to 6%.

What have you got to spend? (PM me if you prefer). If you let me have some details, i will happily have a look at what we've got.

Give me an idea of;
preferred location
preferred sector
amount you're looking to spend (is this cash or debt?)
Any other specifics.


mike_1985

357 posts

222 months

Thursday 14th August 2008
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Please keep me intouch with what you find , im very curios

pugwash4x4

7,684 posts

252 months

Friday 15th August 2008
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I have the freehold of leased property that's up for sale and will return 7% over 19 years if that's of any interest.

TimCrighton

996 posts

247 months

Friday 15th August 2008
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Residential yields have moved, but not that much, unless you're looking at Student housing, and as stated above, they are management intensive.

Commercial will provide you, typically, with lower management input and a similar yield although even then 10% is relatively optimistic at the smaller end. (we're talking decent investments, not tertiary retail lock ups - which probably will give you 10%)

Edited by TimCrighton on Friday 15th August 11:22

Work-Shy-Wanabe

Original Poster:

1,548 posts

257 months

Wednesday 27th August 2008
quotequote all
Cheers for the replies.

Im not sure comercial property can work for me, with 20% cash and 80% debt. From what your saying you need multiple millions in buying power to make it work?

Work-Shy-Wanabe

Original Poster:

1,548 posts

257 months

Wednesday 27th August 2008
quotequote all
TimCrighton said:
Residential yields have moved, but not that much, unless you're looking at Student housing, and as stated above, they are management intensive.

Commercial will provide you, typically, with lower management input and a similar yield although even then 10% is relatively optimistic at the smaller end. (we're talking decent investments, not tertiary retail lock ups - which probably will give you 10%)

Edited by TimCrighton on Friday 15th August 11:22
What do you mean by decent investments? ;-)

Welshbeef

49,633 posts

229 months

Friday 29th August 2008
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pugwash4x4 said:
I have the freehold of leased property that's up for sale and will return 7% over 19 years if that's of any interest.
What is the type of business (Im guessing it might be a pub?) also what price range.

pugwash4x4

7,684 posts

252 months

Friday 29th August 2008
quotequote all
The propety is leased already, its a fish and chip shop with flat above, and the lease is secured against the lesee's house along with a 3 bedroom flat above; as such its a pretty secure investment for anyone seeking an income investment.


selmahoos

694 posts

240 months

Saturday 30th August 2008
quotequote all
Millcroft Rd, South Carbrain, Cumbernauld, G67. 2 x 2-bed flats both in decent order. £83k for both. Each produces +/- £4.2kpa at full occupancy.

Management available at 10%+vat. Accounts available. Email me if you're real and ignore me if you're not.

Seany88

1,249 posts

251 months

Monday 1st September 2008
quotequote all
pugwash4x4 said:
I have the freehold of leased property that's up for sale and will return 7% over 19 years if that's of any interest.
Is that 7% per annum?

pugwash4x4

7,684 posts

252 months

Monday 1st September 2008
quotequote all
Yes, it's annual rate of return would be around 7% depending on the negotiated purchase price.

Seany88

1,249 posts

251 months

Monday 1st September 2008
quotequote all
pugwash4x4 said:
Yes, it's annual rate of return would be around 7% depending on the negotiated purchase price.
How is the 7% worked out? As a percentage of the initial capital invested? i.e. the min. deposit required to secure financing? Or of the value of the property?

emicen

9,254 posts

249 months

Monday 1st September 2008
quotequote all
selmahoos said:
Millcroft Rd, South Carbrain, Cumbernauld, G67. 2 x 2-bed flats both in decent order. £83k for both. Each produces +/- £4.2kpa at full occupancy.

Management available at 10%+vat. Accounts available. Email me if you're real and ignore me if you're not.
I'm curious. Why are they being sold?

That part of Carbrain isnt that bad (still wrong side of the valley in fairness though) and if rental yield is that good then retaining ownership seems a no brainer at only £41.5k per unit.

Leondrums

184 posts

243 months

Monday 1st September 2008
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May have one of interest - we have purchased some land and are having our house built - we have just reduced our price by £40,000 on our current house to OIE 180k. We had sold in Jan for £211500 but fell through. It will rent for £725 - £750 easy, very close to city (Norwich) and train station but with off road parking, garage and large garden. We've had 2 rental valuations and 5 sale valuations.

Let me know if the figures stack up for you.
No work to do either!

Trommel

20,652 posts

290 months

Monday 1st September 2008
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emicen said:
if rental yield is that good then retaining ownership seems a no brainer at only £41.5k per unit.
Indeed.

selmahoos

694 posts

240 months

Monday 1st September 2008
quotequote all
They're for sale coz that's what I do! (Say my name with a Scottish accent). And you're MEANT to get a good deal so that you make money and are happy! And when all this happens, you'll probably buy another one, or get your friend to buy one (or two)! And who knows, you may even give them to our agency to manage for you at 10%+ vat forever!

amir_j

3,579 posts

232 months

Monday 1st September 2008
quotequote all
selmahoos said:
They're for sale coz that's what I do! (Say my name with a Scottish accent). And you're MEANT to get a good deal so that you make money and are happy! And when all this happens, you'll probably buy another one, or get your friend to buy one (or two)! And who knows, you may even give them to our agency to manage for you at 10%+ vat forever!
Is your agency willing to guarantee the 10% return biggrin

Wings

5,970 posts

246 months

Monday 1st September 2008
quotequote all
pugwash4x4 said:
I have the freehold of leased property that's up for sale and will return 7% over 19 years if that's of any interest.
Commercial?

selmahoos

694 posts

240 months

Monday 1st September 2008
quotequote all
Yes Keyhome will guarantee that if the flats are fully occupied at £350pcm and if there is no rent default, then slightly above 10% gross will be achieved on a purchase price of £83k