36% Gross Rental Yield – Is that even possible?Make Text Bigger
When I saw a property listed in Liverpool today showing a 36% gross yield I thought it must be a mistake, so I called the agent.
It’s not a mistake!
I was told the property is let to a blue chip company on a rolling 12 month company let agreement with a verbal commitment to renew for two further years.
The property is fully furnished and part of the deal is that all bills are included and the property is cleaned weekly. Apparently this nets down from gross rent of £1,600 pcm to a net rent of £1,000 pcm. Nevertheless, even if you crunch the numbers down at that level the yield is still a whopping 22.66% based on a purchase price of £52,950.
A few years ago, when I was still buying, I’d have been very tempted to go and have a look for myself, even though Liverpool is about as far from me as I could get in England.
Whoever buys this property, or even if you just go and have a look, please come back here and share your thoughts.
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