Comments on: Buy-to-let investors who fear they may be left homeless http://www.landlordzone.co.uk/blog/news/buy-to-let-investors-who-fear-they-may-be-left-homeless The LandlordZONE Weblog - news, economic and legal developments, current affairs and a knowledgebase for those involved with Rental Property, residential and commercial: Investors, Landlords, Property Managers, Letting and Estate Agents, Tenants and Professionals. Sat, 17 May 2008 04:09:14 +0000 http://wordpress.org/?v=2.5 By: site admin http://www.landlordzone.co.uk/blog/news/buy-to-let-investors-who-fear-they-may-be-left-homeless#comment-6068 site admin Mon, 24 Mar 2008 10:29:29 +0000 http://www.landlordzone.co.uk/blog/news/buy-to-let-investors-who-fear-they-may-be-left-homeless#comment-6068 Sound Advice Robin Sound Advice Robin

]]> By: Robin Pearce http://www.landlordzone.co.uk/blog/news/buy-to-let-investors-who-fear-they-may-be-left-homeless#comment-6067 Robin Pearce Sun, 23 Mar 2008 21:37:20 +0000 http://www.landlordzone.co.uk/blog/news/buy-to-let-investors-who-fear-they-may-be-left-homeless#comment-6067 Never trust anyone. Always do your own research to see what rents similiar flats in the area are achieving. That means not the rent being asked on vacant flats, but the actual rent on let out flats. Then the basic equation is what is the yield. This should be about 6%. In other words a £100,000 flat should let out for £6000 pa. If it can't achieve that rent then walk away or you'll be subsidising the mortgage. Many investors didn't check the potential yield before buying or weren't even aware of this most basic yet essential calculation. Yield in percent = 100 x annual rent/property value. Never trust anyone. Always do your own research to see what rents similiar flats in the area are achieving. That means not the rent being asked on vacant flats, but the actual rent on let out flats. Then the basic equation is what is the yield. This should be about 6%. In other words a £100,000 flat should let out for £6000 pa. If it can’t achieve that rent then walk away or you’ll be subsidising the mortgage. Many investors didn’t check the potential yield before buying or weren’t even aware of this most basic yet essential calculation. Yield in percent = 100 x annual rent/property value.

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