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BTL - At what price is this feasible?

Jaynorth_2 · 2012-11-15 11:34:17

Hi I am currently trying to sell my flat and wondered at what price a buy to let investor would consider the yield to be enough to cover the purchase of my flat. Is this calculation possible? Flats in my block rent for between £850 to £900 pcm A current tenant told me he pays £850 pcm but the condition of his flat is very…

Comments

Wobblydeb Posts: 1,046 Forumite

19 November 2012 at 2:51PM

moneyistooshorttomention wrote: »

My house is due to be priced at £175,000 and it would be around the £750 per month mark if it were rented out.

From that - I am wondering if BTL'ers would find the "yield" suitable for their requirements or no.

At 5.1% yield it would either go to an inexperienced investor (not many of them around nowadays) or it would need to be pretty good in every other respect. e.g. No maintenance work required, new-ish facilities, no monthly management charges, a strong rental demand in the area from good tenants, no new homes nearing completion to compete for those tenants. etc. etc. etc.

I've got a plan so cunning you could put a tail on it and call it a weasel.
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