What type of rental properties offer the best yield?
Asked on Sep 5 2013,
Renting in Hayes |
it all boils down to purchase price and for example if you purchased a 2 bedroom ex local authority semi-detached home in Sunderland for £60,000 and achieved a monthly rent of £550 (£6,600 pa) this would represent an 11% return on your investment. Far better than your 2% in the bank!
Answered on Sep 6 2013,
According to a new report, the best types of rental properties in terms of yield (and a number of other factors) are student properties. The study found that these average a yield for owners at around 6.8 per cent on average. The UK mean yield level sits at 6.1 per cent, so students lets are bringing in significantly more.
The reasons for this include the fact the initial outlay is quite low, and that rental income can actually be quite high in the right areas.
There are other ways to see a good rental yield though, which include buying in the right areas geographically as opposed to just the right types of properties.
For example, Southampton is said to have the best yield in the entirety of the UK, while others like Manchester, Leeds and Sheffield in the north also bring in great levels of return thanks to low initial outlays for the landlord.
Answered on Sep 25 2013,
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