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ae589

Gross rental yield 1.8%

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newsflash, true value of the house is whatever you update into your spreadsheet pal

 

insider secret: update your house value each month into a new row, set your "yield" percentage column (this is basically what business people call your profit in laymans terms) then adjust your rent to match your yield

 

so if you increase your house value by lets say 1% a month (industry standard) you will be obliged to increase your rent by the same amount to keep up with your yield. otherwise as your house increases in value your yield "diminishes" (this is known as the law of diminishing returns)
 

 

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48 minutes ago, ae589 said:

I find this quite astonishing:

£240k for 3 bed terrace (cheap for Brighton)

"let to a protected tenant paying a registered rent of £85pw (£4,420pa)"

Doesn't that mean the true value of the house to an investor is somewhere between £50k and £100k?

http://www.rightmove.co.uk/property-for-sale/property-52601463.html

Depends how old the tenant is.

Cant see anyone under 65 having a protected rent.

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  • 406 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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