Depends on your area Baza. We have a waiting list on our flats. Last week we found out the lass renting the main upstairs flat at £90p.w. was moving out at the end of her 6month tenancy at the end of Dec. we got her text at 6am, by 10.30 we had 4 people interested and by lunchtime we had a deposit down by the new couple moving in. We've increased the rent on that flat by £5 a week now as two people are moving in. By comparison, Jim in the downstairs flat has paid the same £70 per week since he moved in 4 years ago. We look after the tenants in other ways-free broadband and water rates

[Edited on 23-12-2011 by LiVe LeE]

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Originally posted by ste_p23

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Originally posted by baza31
how i see it if thier rent covers expenses then why worry about 7% profit? they stay there till the money owed is paid and every penny less tax is profit and you own a house someone else has paid for

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It depends on what kind of investor you are tbh, for somneone who is startting out in the game im sure they would be happy at a 4-5% yield, However a more serious investor will aim for around 5-8% as a minimum this is so the money they use can be re-invested increasing a portfolio size it all just depends on the each individual view :thumbs:

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Originally posted by baza31
how i see it if thier rent covers expenses then why worry about 7% profit? they stay there till the money owed is paid and every penny less tax is profit and you own a house someone else has paid for

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how i see it if thier rent covers expenses then why worry about 7% profit? they stay there till the money owed is paid and every penny less tax is profit and you own a house someone else has paid for

You should be looking to achieve at least 6-7% return for it to be viable, though 10%+ can also be done if you buy well. If you know the areas well you can't go too far wrong, though the real money is in turning them round quickly. Only problem with turning them round is finding the right mortgage product to facilitate it, most have tie ins, penalties etc.

The rental income on the two flats is £715.00 a calendar month combined for a property value of £120,000.

In my area, I'd absoloutly recommend buying townhouses which have been split into flats. Our's is 3 story, 2 1 bed sizeable flats. The mortgage is essentially covered by the rental of one flat, the income from the second pays running costs, capital payments or paying us back for the intitial investment made (boilers, windows etc etc). The other benefit of the two flats in one property is that as said, the flats return £715.00 or thereabouts, whereas as a single property it would only return £450(ish)

Surely it depends on the area?
Where I live stuff generally returns around 6% p/a and rents very quickly
5 minutes up the road there are houses that have been available for 6 months plus and are likely to return only 2-3%

Im just looking for some info to see if you have noticed any trends with your returns on investments or if you have noticed any change in your letting time scales. The reason im asking is that i have just bought a house ( non buy to let with a very small mortgage) and i currently have some money invested which i should see a nice return on so im looking to purchase a property around the 50-80k mark as a long term buy to let investment so any help would be great as the current market seems to be steadily growing for buy to let :)

[Edited on 28-11-2011 by ste_p23]