jimbo Posted June 22, 2006 Report Share Posted June 22, 2006 I am at a point of buying rental property and am therefore new to the game. I wanted to get some advice on calculating if something is a good idea as I have received mixed advice on rental yield and capital growth. I am currently looking at a 2 bed flat at £300k. AS far as I can work out the best renatl I might get is about £1,400 per month, so £16,800 pa. This of course doesn't take into account any down time or maintenance costs. It would also only just squeak in on paying any mortgage (if it was 100%) Without getting too carried away, what is a rule of thumb rental yield one should look for on rental ie annualised rent divided by acquisition cost Link to comment Share on other sites More sharing options...
Melboy Posted June 22, 2006 Report Share Posted June 22, 2006 Jimbo... I am not a financial expert with a rule of thumb just a good nose for a good deal and I have to say that I would not give your proposal a second thought. You would be buying at the top end of the market with interest rates almost certain to rise very shortly and even if they don't you would still be struggling on your investment to make any cash from your proposed BTL plan. I'll leave it to the Financial Experts on the Forum to explain it to you in better fiscal terms (perhaps!) Link to comment Share on other sites More sharing options...
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