22:05 PM, 1st June 2013, About 8 years ago 7
I wonder if someone would be good enough to explain rental yield to me as I want to know I am on a sustainable track.
We have one property which we bought outright for £129000 and we rent this out for £600 pcm.
We then remortgaged another property we owned outright to raise the deposits for 2 more houses.
We used part of this equity as a 35% deposit on a house we paid £140000 for and are renting out for £695 pcm and we are in the process of buying another one with the rest of the equity being used for a 25% deposit.
This house already has an existing tenant who is paying £700 pcm.
That just leaves the property that we remortgaged. We paid £120000 for this house and this is being let at £595 pcm.
We are considering now remortgaging the other property we own outright to raise the deposits to buy 2 more houses but would just like a bit of guidance on rental yields as I am not sure if you use the figure you actually paid for the house or the figure it is mortgaged for.
I would appreciate any advice offered.
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