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Good return on rental investment?
ET1976
Posts: 315 Forumite
I currently own a property worth around £215k, with about £155k equity in it.
It has been rented out for the last 3 years, earning just under £800 a month rent (I didn't buy it as an investment, I used to live in it).
I am thinking of reviewing the rent (I priced it deliberately under the market rate so I could fill it quickly and have had the same tenants for the whole 3 years which was worth more to me than a few extra pounds a month in rent), but from my reasearch the top whack I could charge would be £850.
By the time I've taken off all the running costs, it seems a pretty poor return.
I'm wondering whether to sell and buy a smaller place (under the stamp duty threshold) which will take less maintenance and perhaps get me a better return. The property market is still bouyant in the area so I'm not worried about selling at a low point (it's definitely a seller's market!).
What's a good/realistic return on a rental investment?
It has been rented out for the last 3 years, earning just under £800 a month rent (I didn't buy it as an investment, I used to live in it).
I am thinking of reviewing the rent (I priced it deliberately under the market rate so I could fill it quickly and have had the same tenants for the whole 3 years which was worth more to me than a few extra pounds a month in rent), but from my reasearch the top whack I could charge would be £850.
By the time I've taken off all the running costs, it seems a pretty poor return.
I'm wondering whether to sell and buy a smaller place (under the stamp duty threshold) which will take less maintenance and perhaps get me a better return. The property market is still bouyant in the area so I'm not worried about selling at a low point (it's definitely a seller's market!).
What's a good/realistic return on a rental investment?
0
Comments
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You are getting about twice as much income than if you put £155k in the bank!0
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Agree poor return,prob earn more in cash.
If you are confident in getting a good price ,and would like to stay with property ,consider 3 or 4 smaller terraced properties.Should give better yield.Or have some cash and or equities.
In an upturn several smaller properties should also produce a greater capital gain than 1 single0
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