How do you calculate how much rental a house can generate?

Alan_M_2

Commercial property is around 7% at present or that's what's being asked, I've been looking at warehousing for the last 12 months or so. The problem being, values have increased so much that businesses can't afford the rentals and I've be viewing on business parks and industrial estates with appalling levels of occupancy ( less than 50%) as a result.

Unlike domestic property, commercial doesn't seem to be driven by the same sentiments, - i.e. a business can afford the rent or it can't, it far more black and white.

Domestic differs, you can pull the wool over peoples eye a lot easier.

In a lot of areas, BTL has become non viable as an investment now with increased house prices and no proportional increase in rental incomes.

Kaminari_2

I don't expect anything.
I have property here and abroad. As i said it is very difficult to find but once you by pass the EA and look at property creatively it can be done. Every house out there is NOT average. The last property i bought in October was £85k. This property was split into 4 1 bed flats. Each flat rented at £60 per week. Basic yield before voids, insurnace and the rest is £240 per week for all 4 flats or £12480 pa. Which is a 14.7% yield. I have spent an extra £2k bringing the property up to scratch so if you want to add that into the price the yield is still 14.3%.
There are still areas out there that are bucking the 3.25% trend when it come to stright yield. All i can say is research, research, research.

Wolvoman and FTbuyer, what you quote are the averages. Not all property is average.