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Sorry about the delay... trouble replying (Thanks Webmaster for fixing it!)

For all private uk renters posts upto and including #81...

Can you calculates the Yields individually, and then Averge them?

I get an average of 4.33% (max 7.66%, min 2.42%)

SO WITH Mortgage Interest rates at 5.5%,

The Average HPC poster is being subsidised by...

5.50 - 4.05= 1.45% x £219,000 = £3,176 per annum

or £265 per Month  ... 0r £8.82 per Day

THANX PIGGIES!

Calculating each posters subsidy (using your figure of 5.5% mortgage interest rate) and averaging I get £3400 (max £17250, min -£3400)

Or a total annual subsidy of £222k between 65 posters :lol::DB)

Does this exclude the housesharers? as we will sqewe the results...

It was just a quick average of everyone... this post only deals with the private renters.

Done. Average of Individual Gross yields is: 4.25%

The data used to calculate this is attached and below.  I'll do some more analysis shortly.

Thanks RJG18!

Other Interesting Stats:

Lowest Gross Yield = 1.42%

Highest Gross Yield = 7.66%

Median Gross Yield = 4.20%

I make the lowest private renter Gross Yield as 2.42%... and average is a bit higher at 4.33%.

Average (Mean Av) Gross Yields for Property Type:

Average Monthly Rent per Property Type:

Average Property Price for Property Types:

Thanks again RJG18.. interesting figures... esp the gross property yields for property type... the "bucket shape", with lowest yields for 3-4 beds... i guess 1-2 beds have higher yields because traditionally there is more demand for them... where as 5 bed are the opposite because there is less supply?

Edited by beerhunter
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Great work, a real eye opener.

My LL is making somewhere 6.78% yeild!

Its probably even more because I checked out he bought it for 59K, two years ago. It is currently worth about 69K for these units as I stated - no takers for next door still.

:o

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It would be good if people looked on NetHousePrices to find out the price your landlord paid.

I have adapted a spreadsheet I have to work out the mortgage rates, thought it might help you all. N.b enter values in the blue, the forumales for capital repayment are correct so play around with the interest rates as you wish.

P.s. Sorry its scruffy, I can't be bothered to make it smarter!

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1) Private

2) Monthly rent £750

3) Number of bedrooms - 2 double

4) County - London SE26, next to Crystal Palace Park

5) Estimated property value (if sold today) Not sure - 1 bed upstairs recently SSTC for 130k, ll bought ours for 123k in August 2002, so probably around 220k now. Just got news each flat is being hit for £300 pcm for repairs and service charge next year. Expect he put down a big deposit, but that's still got to hurt... Glad I'm not a homeowner. :D

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1. private

2. £130 pcm

3. 3

4. Herefordshire

5. £130,000, was bought for £25,000 in about 1995 i think.

rent is cheap because im related to the owners! bargain, but i did see a cottage going for £100 pcm the other week! but it had gone unfortunately :( their was a slight catch though...it had NO services connected.

Edited by HenryWeston
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1) private LL

2) £495 pcm between 2 peeps less expensive than some places rnd here as has woodchip!

3) 2 bed largeish flat

4) West Yorks

5) Poss £160-170K comparing to present asking prices for similar properties, tho LL bought whole house which is 3 2 bed flats 20years ago, so he is not a BTL Johnny come lately to the LL game

:ph34r:

Edited by Beadbo
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Beerhunter,

Your post #82:

"I get an average of 4.33% (max 7.66%, min 2.42%)

. . .

Calculating each posters subsidy (using your figure of 5.5% mortgage interest rate) and averaging I get £3400 (max £17250, min -£3400)

Or a total annual subsidy of £222k between 65 posters "

Have you the Raw figures?:

Average Rent, Average House price, Average yield, Average monthly savings??

Sorry about the delay.. was busy brewing up some beer :D

See the attchments... a html for easy viewing for those without a spreadsheet.. and a csv (extension changed to txt to upload it) for those with B)

Any errors are mine :ph34r:

A couple of notes..

1) Where people say between x and y, I've taken the average figure, ie between £160k and 170k became £165k.

2) For those sharing a house, I've taken the libity of assuming they are renting 1 bedroom.. I think its difficult to compare directly with renting a flat / house.. except you would expect the avrege house sharers rent to be less than that of a 1 bed flat.

An additional thought:

Last night I thinking about this subsidy.. well actually the amount saved by renting compared to buying today with a 5.5% io mortgage (since I guess some ll bought some time ago, mine certainly did).. we are not taking into account the cost of ownership.

So how much does maintaining a house cost a year? I'd guess 2% of the house price would be reasonable, ie a £100k property would cost on average £2k / year to maintain.

So the point at which it is worth changing from rent to buying io (because it would be cheaper) is

(monthly_rent * 12) = house_price * (2% + interest_rate )

house_price = (rent * 12) / (2% + interest_rate )

Plugging in my figures;

house_price = (£725 * 12) / (2% + 5.5%) = £116k

Current price is £175k... so a 33.7% drop is needed.

Working out the same for everyone else... the current average house price is £241k... the average price at which its time to buy is £132k... or a 43% drop! :o

Average_Rent.htm

Average_Rent.txt

Average_Rent.htm

Average_Rent.txt

Edited by beerhunter
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Excellent thread BH

Thanks wrongmove, and thanks to everyone who replied.

Here's another interpretation.. sometimes its difficult to understand exactly what a yield means.. so here's if your rent was used to service a 100% IO mortgage @ 5.5% what house price would you buy at...

Private LandlordsPost Poster                     Rent  House Price    House price if    Change in                                                     rent serviced a   house price                                                     100% IO mortgage                                                     @ 5.5%1    Beerhunter                    725     175000           158182      -9.6%2    TW11                          750     225000           163636     -27.3%3    Mutley                       1200     200000           261818      30.9%4    homeless                      150      45000            32727     -27.3%5    spiv                          795     225000           173455     -22.9%6    RichM                         825     190000           180000      -5.3%8    Sine270                       910     250000           198545     -20.6%10   non-FTBer                     600     150000           130909     -12.7%11   burnt before                  600     220000           130909     -40.5%12   STR2004                       650     250000           141818     -43.3%13   Gtr London FTB               1100     265000           240000      -9.4%14   Giraffe Cat                   325      75000            70909      -5.5%15   Spring Bounce                 550     137500           120000     -12.7%16   leftysmate                    800     340000           174545     -48.7%17   Ignorant Steve               2700     700000           589091     -15.8%18   Applo                         800     170000           174545       2.7%19   hra                           775     200000           169091     -15.5%20   CrashedoutAndBurnt            800     180000           174545      -3.0%21   Mobsy                         795     300000           173455     -42.2%22   echapps                       950     300000           207273     -30.9%24   trev                          390      69000            85091      23.3%25   David                         795     250000           173455     -30.6%26   CASHKING                      825     275000           180000     -34.5%27   rainbow                       800     300000           174545     -41.8%28   Merryn                        585     175000           127636     -27.1%29   JBFTB                         595     140000           129818      -7.3%30   murpaul                       875     250000           190909     -23.6%31   sllabres                      830     130000           181091      39.3%32   non accountant               1300     370000           283636     -23.3%34   scaramange                    725     280000           158182     -43.5%36   wrongmove                     375      90000            81818      -9.1%37   deperate housewife           1100     250000           240000      -4.0%38   Sparker                       900     180000           196364       9.1%39   737                           580     287500           126545     -56.0%40   Salsa                         950     300000           207273     -30.9%41   Possum                       1100     400000           240000     -40.0%42   ExeC                          650     165000           141818     -14.0%43   liquid                        400     180000            87273     -51.5%44   magnoliawalla                 500     200000           109091     -45.5%45   Mushroom                      600     200000           130909     -34.5%46   DrBubb                       1625     600000           354545     -40.9%47   provate                      1400     330000           305455      -7.4%48   mad'um                        650     300000           141818     -52.7%50   HPCheese                      900     240000           196364     -18.2%52   rw waiting                    950     200000           207273       3.6%53   gen-x                         520     130000           113455     -12.7%55   wheresmyfoxhole               750     160000           163636       2.3%57   flike                         495     119000           108000      -9.2%58   RJG18                         400     150000            87273     -41.8%61   ShirtyTheSlightlyAggressive   770     190000           168000     -11.6%62   Lou G                        1000     300000           218182     -27.3%64   ah-so                         750     170000           163636      -3.7%66   Rapid Descent                1000     380000           218182     -42.6%68   Blind                         650     200000           141818     -29.1%70   IP Newcomer                   450     105000            98182      -6.5%71   Starcrossed                   650     245000           141818     -42.1%72   Three Little Pigs            2533     700000           552655     -21.0%73   London Loser                  900     200000           196364      -1.8%74   Oxfordite                    1940     450000           423273      -5.9%75   Feed up renting               825     290000           180000     -37.9%76   gallivant                     450     105000            98182      -6.5%77   poospoon                      700     190000           152727     -19.6%78   colonel faulkner              600     180000           130909     -27.3%79   monkey boy                    550     170000           120000     -29.4%80   STR@2%GY                     2000     750000           436364     -41.8%81   Forever rent                  700     250000           152727     -38.9%86   Freelance Mycophagist         825     185000           180000      -2.7%87   Antsy                         750     220000           163636     -25.6%89   Nosey Parker                  550     150000           120000     -20.0%90   HenryWeston                   130     130000            28364     -78.2%91   Beadbo                        495     165000           108000     -34.5%92   Once Bitten x2 Shy           1200     400000           261818     -34.5%93   aj                            600     150000           130909     -12.7%94   WBFTB                         550     125000           120000      -4.0%    Average                       827     241000           180472     -21.7%    Total                       60933   17718000Housing Associations7    Vicster                       290     145000            63273     -56.4%35   right freds dead              275     135000            60000     -55.6%                                282.5     140000                                  565     280000House Sharers9    delboypass                    275     105000            60000     -42.9%23   Libertine                     600     210000           130909     -37.7%33   moosetea                      225     190000            49091     -74.2%                               366.67168333.3333                                 1100     505000
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1. Housing Association

2. £400

3. 2

4. London NW1

5. £350K a year ago, £275K today

Spacious ground floor flat, non estate

Good schools

Good transport links

1.5 miles to West End

Sandwiched between Hampstead Heath and Regents Park

I'd be a fool to buy a 1 bed flat in Dagenham now, cos that's all £400 pm would buy!

Edited by Realty Cheque
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