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What price to pay as BTL investor?
amcluesent
Posts: 9,425 Forumite
I'm looking at an area where rental income is 525pcm for a 2 bed and good occupancy rates. There's a 2 bed house newly for sale which needs little or no work, could be let straight away after getting gas certs etc.
Just wondering how much to offer, assuming £525pcm and I'd want the 'usual' investor yield as a cash buyer.
Just wondering how much to offer, assuming £525pcm and I'd want the 'usual' investor yield as a cash buyer.
0
Comments
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7% would be a handy benchmark"enough is a feast"...old Buddist proverb0
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Ta. So ...
Expected Income - £525*11 = £5775
Costs P/A - £500
Yield Target - 7%
7% = (5775-500)/Purchase Price
Therefore Purchase Price = £750000
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