How do we all measure BTL returns?

How do we all measure BTL returns?

16:26 PM, 12th October 2016, About 5 years ago 3

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Interested to understand what measures people use to assess their investment decisions both at point of purchase and in retrospect?measure

Many thanks

Richard



Comments

by Neil Patterson

16:29 PM, 12th October 2016, About 5 years ago

Hi Richard

This is a massive open question and I will start you off with our Landlords Calculator >> https://www.property118.com/calculating-rental-yields-and-returns/

by David Lovegrove

22:23 PM, 12th October 2016, About 5 years ago

Also I find
Commercial trust.co.uk/btl/calculators/rental-yield-calculators/

To be quite useful as it gives you the option to measure :
Gross Yield
Net Yield
Real Yield
True Rate Of Return

by Sam Addison

8:22 AM, 13th October 2016, About 5 years ago

At point of purchase I use gross yield (likely annual rental income over (purchase costs + estimated refurb cost)) and am looking for approx 8%. I don't include capital appreciation. Subsequently I am looking for 6% nett of letting agents fees, insurance, allowance for maintenance etc. I don't take possible voids into consideration.


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