What is a good BTL yield?

Bluebell1000

We have a 2 bed flat currently let at £475 gross pcm. We've been nice and not raised the rent for 2 years, so it's slightly under current market rate now. Just wondering how much a BTL investor might think is a reasonable price to pay for that level of rental income?

We're trying to decide whether to sell, and if so, whether to target it at investors as we still have the tenants in there at present...

If it affects your answers, it also comes with a 1/4 share of freehold.

Thanks.

nollag2006

I get 6-8% on my properties.

As I live in London price increases probably double that annual return since the nadir of the house price crash in early 2009.

I wouldn't look at anything with a yield below 6% these days when you consider most BTL mortgage deals start at 4%.

Bluebell1000

That's useful, thanks, looks like the selling price we'd like to achieve would be in the region that an investor would consider

dinofabio

Maybe the question should be 'what is a poor yield?' rather than what is a good yield which is a bit open ended.

Capital growth should also be factored in.

IMO anything less than 5% net wouldn't be worth bothering with, unless there was capital growth too

kingpin1

if the flat is around75k or below it stacks up for a btl but some buyers buy in the hope of values rising not a positive cash flow