How do we all measure BTL returns?

by Readers Question

16:26 PM, 12th October 2016
About 2 years ago

How do we all measure BTL returns?

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How do we all measure BTL returns?

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

Neil Patterson

16:29 PM, 12th October 2016
About 2 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/

David Lovegrove

22:23 PM, 12th October 2016
About 2 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

Sam Addison

8:22 AM, 13th October 2016
About 2 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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