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#1 User is offline   Self Employed Youth 

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Posted 29 April 2012 - 12:45 AM

I've noticed a building come up.

And the price seems very low compared to the rental yield.

I'm sure it will fetch more than the guide, and that the yield will decrease.

What kind of yield would you expect?
Have I not reason to lament what man has mas made of man?

Initially 'Unemployed Youth'
Then 'Formerly Unemployed Youth'
Then 'Unemployed Again Youth'
Hopefully soon to be 'Employed Again Youth' and not long after that I'll be eligible for working tax credits, if not I'll at least get adult rate dole and maybe car insurance will be potentially affordable!

#2 User is offline   Wurzel Of Highbridge 

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Posted 29 April 2012 - 08:53 AM

View PostSeasonally Employed Youth, on 29 April 2012 - 12:45 AM, said:

I've noticed a building come up.

And the price seems very low compared to the rental yield.

I'm sure it will fetch more than the guide, and that the yield will decrease.

What kind of yield would you expect?


7% yeild allowing for 20% costs, voids etc takes you 19 years to get your money back (pre tax) , then you are left with whatever capital is left.

If you are betting that house prices will fall then you might be willing to accept less than 7%. Likewise if you believe prices will fall, then you will demand over 7% gross yield.

To me 7% yield looks like 25 years after tax (lower rate payer, no tax deductible mortgage interest), so you will need capital appreciation for it to be worthwhile. Assuming a 100k initial investment and 2% inflation in property prices (note japan) Your capital at the end of 25 years will be worth 160,843.

So invest 100k at 7% gives you you 160k profit after 25 years (before GCT).
  • I don't believe that there can be sustainable asset inflation when there is underlying wage deflation.
  • No matter what you choose to do in life, choose to do what you are best at and be the best you can be.
  • Everyone is a vested interest and everything is rigged.
  • Sometimes bubble dynamics just end, people stop believing and what was once a virtuous cycle suddenly morphs into vicious one.
  • The real value goes beyond the money.


I have come to realize that there is widespread belief in a 2015 global recovery.

At this point in June 2013 is clear that there will be no recovery in 2015, central bankers have run out of tools to patch over the structural problems and the can can no longer be kicked.

As we approach 2015 it will be clear that the emperor has no clothes and there will be an economic crash that makes 2009 look trivial.


Note: I was wrong on 2nd May 2012 12:00 - London Top called prediction of London will fall by >10% in 12 months.

#3 User is offline   homeless 

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Posted 29 April 2012 - 04:00 PM

That does not include the interest on the mortgage to buy the property.

Property is such a very poor investment

#4 User is offline   Self Employed Youth 

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Posted 01 May 2012 - 09:27 PM

First time I ever saw a Jew in Barnsley. They look like me! We spoke briefly, they were eyeing up the same property.

Guide price 85k.

Rental yield @guide price assuming current rent + hb lets = 25% (20k per year ish).

I haven't enough capital to buy it. Could bid low or buy with mortgage, but no debt, no interest, no usury bar the tax upon the currency itself.

This post has been edited by Seasonally Employed Youth: 01 May 2012 - 09:28 PM

Have I not reason to lament what man has mas made of man?

Initially 'Unemployed Youth'
Then 'Formerly Unemployed Youth'
Then 'Unemployed Again Youth'
Hopefully soon to be 'Employed Again Youth' and not long after that I'll be eligible for working tax credits, if not I'll at least get adult rate dole and maybe car insurance will be potentially affordable!

#5 User is offline   Self Employed Youth 

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Posted 16 May 2012 - 10:38 PM

It doesn't appear to have sold!
Have I not reason to lament what man has mas made of man?

Initially 'Unemployed Youth'
Then 'Formerly Unemployed Youth'
Then 'Unemployed Again Youth'
Hopefully soon to be 'Employed Again Youth' and not long after that I'll be eligible for working tax credits, if not I'll at least get adult rate dole and maybe car insurance will be potentially affordable!

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