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What rental APR do you aim for/expect from rentals ?

Hi All

Just wondring what other landlords out there get as a 'basic' return on investment, mine varies from anywhere from 9.5% to 11.7%.

OBVIOUSLY this is not the actual return after all outgoings/maintenance/gas/elec certs/Tax etc.

EG, Property Value £42,000, rent £95 = 11.76%

Cheers

Replies

  • Property value £100k
    Purchase price £46k
    capital invested £10k
    Rental return £4800 p.a
    Don't lie, thieve, cheat or steal. The Government do not like the competition.
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  • edited 31 December 2012 at 10:28AM
    getmore4lessgetmore4less Forumite
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    Part of the Furniture 10,000 Posts Name Dropper I've helped Parliament
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    edited 31 December 2012 at 10:28AM
    For working out current gross/net yield you should use the current realisable* value of the asset.

    It gives real return on your assets. and an indicator how it performs against other potential assets.

    Pro landlords offload when the yields are low on underperforming property either low rent and/or high maintanence looking to reinvest in higher yielders.


    * this will not be the sale value, after costs and any potential CGT.
    realizing some CGT on underperformers by churning a portfolio can be very lucrative and enhanse the future exit value.
  • edited 31 December 2012 at 12:00PM
    00ec2500ec25
    9.1K Posts
    1,000 Posts Combo Breaker
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    edited 31 December 2012 at 12:00PM
    * this will [STRIKE]not[/STRIKE] be the sale value, after costs and any potential CGT.
    don't think you mean "not"
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