How do we all measure BTL returns?
4:26 PM, 12th October 2016, 10 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?
Many thanks
Richard
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Member Since February 2011 - Comments: 3453 - Articles: 286
4:29 PM, 12th October 2016, About 10 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/
Member Since January 2016 - Comments: 88
10:23 PM, 12th October 2016, About 10 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
Member Since April 2014 - Comments: 163
8:22 AM, 13th October 2016, About 10 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.