How to find high yielding properties?

by Readers Question

8:30 AM, 19th January 2014
About 7 years ago

How to find high yielding properties?

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How to find high yielding properties?

I’m quite new to investing in property, I’ve been using the landlord calculator and I can’t find any good investments, and what is classed as a good investment.

I currently have one buy to let and I’m getting a ROI of 6% nett using leverage. Just wondered if there is a rule of thumb that could guide me in the right direction and also what to aim for.

Thanks How to find high yielding properties

Stuart



Comments

Mark Alexander

8:40 AM, 19th January 2014
About 7 years ago

Hi Stuart

There are no hard and fast rules I'm afraid.

Your net ROI could be lower than is possible due to the way you are financing and managing your property. However, it could just be due to you purchasing a property in an area with high prospects of capital growth.

Hi yield is only one benchmark for property investment, their are many others and whilst net ROI is my personal favourite there are still factors which need to be taken into consideration - "hassle factor" being a good example. I could get far higher ROI if I were to invest into HMO's up North for example but I choose not to due to distance.

Ideally what you should be looking for is a property that bucks the trend. They are out there but the reason people give up looking is that they are not easy to find. It's a bit like searching for gold in the great American gold rush!

Don't discount properties which you can buy, add value, let short term and then sell either. There is good money to be made in this too. see >>> http://www.property118.com/there-is-good-money-bungalow-refurbishment/29537/

In short, keep looking. I'm glad you are enjoying the Landlords Calculator even if it's not giving you the results you are looking for. I also suggest you try the Property Research Tool when you think you are onto something interesting. Remember, people who are selling might not tell you the whole truth so doing your research is vital - see >>> http://www.property118.com/property-search-tool/

Good hunting 🙂

John Daley

11:12 AM, 20th January 2014
About 7 years ago

Hi Stuart,

Perhaps unsurprisingly, information on great property investments tends to be hard to come by, people who can find them tend not to make a big fuss about it.

The basic principle is that you are looking for an area where capital values are rising and rents are also high. There are a fair number of places where one or other is true but not so many with both.

Fortunately there are those who do the research and analysis of the property markets for us and Savills recently published Savills Rental Britain. Its a bit wordy but does contain plenty of good advice for investors in the PRS.


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