Hi, Peter Jones, author, property investor, ex-chartered surveyor.
I’m outside one of my buy to let properties here and a question I am often asked is “What makes a good buy to let yield?”
But, it’s one of those things where I don’t think there’s any hard and fast rules.
The answer to that question depends upon why are you buying the property? What is the property for? Because there’s plenty of investors out there who, perhaps they’ve got money in the bank, perhaps they’re earning 0.5% or if they’re really lucky they’re earning 1% on their money, and if they can buy a property, if they can put their money into something which they see as being a safe investment, and if they can perhaps get 5 or 6% on that then they’re very, very happy.
I tend to look for properties which are yielding roughly on a gross yield basis, probably around about 8%, but again not a hard and fast rule, because what I am looking for is a property which I can buy cheaply enough to be able to do a refurb, a simple refurb, add the value, create a margin, and then refinance and get all or most of my money back out.
And it just so happens to be that where I buy using that strategy, it means that an 8% yield is a pretty good yield. It might be 7 ½ or with other properties if I can’t add quite so much value it might have to be 9 or 10.
So, no hard and fast rules at the end of the day it’s whatever makes sense for you and whatever it is you’re trying to achieve.
Until next time, here’s to successful property investing.
Peter
Peter Jones
(ex) Chartered Surveyor, author and property investor
https://thepropertyteacher.co.uk
PS. By the way, I’ve rewritten and updated my best-selling e-book, The Successful Property Investor’s Strategy Workshop, which is an account of how I put together my multi-property portfolio, starting from scratch and with no money of my own, and how you can do the same.
For more details please go to:
https://thepropertyteacher.co.uk/the-successful-property-investors-strategy-workshop
