Landlords: what's your NET rental yield?

remorseless

If you're a landlord, what's your NET rental yield?
Okay, there are lots of conditions, location, etc - obviously hard to capture in a simple pool so just ballpark average will do!
Thank you!

In_For_A_Penny_2

No chance of a net loss on a rental property?

masonic

You might get more meaningful results if you specify what things should be deducted from the gross figure to arrive at the net figure, and more responses if you posted in the House Buying, Renting & Selling board.

alexanderalexander

masonic wrote: »

You might get more meaningful results if you specify what things should be deducted from the gross figure to arrive at the net figure

Agreed. And if the answer is to deduct all costs, then the question becomes pretty meaningless as net yield is largely dependent on how much mortgage debt a landlord has.

Also I'd be very surprised if any landlords had a net yield higher than 10%.

remorseless

In_For_A_Penny wrote: »

No chance of a net loss on a rental property?

You're right, I am so sorry! I should have thought about having something in minus too... I suppose I cannot change the poll?

remorseless

alexanderalexander wrote: »

Agreed. And if the answer is to deduct all costs, then the question becomes pretty meaningless as net yield is largely dependent on how much mortgage debt a landlord has.

Also I'd be very surprised if any landlords had a net yield higher than 10%.

masonic wrote: »

You might get more meaningful results if you specify what things should be deducted from the gross figure to arrive at the net figure, and more responses if you posted in the House Buying, Renting & Selling board.

I thought about it - hence the comment on the poll, one size fits all would be hard... net would imply what the LL is bringing home from the let, minus all costs needed :A

vectistim

Is this a net yield against the gross property value?
A net yield against the equity invested?
A net yield against the original sum invested?

masonic

remorseless wrote: »

I thought about it - hence the comment on the poll, one size fits all would be hard... net would imply what the LL is bringing home from the let, minus all costs needed :A

I suspect the person that has voted 20%+ isn't calculating on that basis, or they are renting out their shed.

masonic

vectistim wrote: »

Is this a net yield against the gross property value?
A net yield against the equity invested?
A net yield against the original sum invested?

If they inherited the property their net yield could be infinite

Biggles

Against original cost of property? Current valuation of equity?

Just too many variations; not really a suitable subject to a simple 'Poll', so no point voting at all.

HappyMJ

I paid £20,000 for my share (the deposit) of my property in 2002 and borrowed the remainder on an interest only basis. The interest rate on the £60,000 borrowed is a SVR mortgage currently at 4%. I let the property out for £600 per month. I don't pay tax as my profits and other income is less than £10,000. The annual expenses are just the gas safety certificate at £50. I don't have landlord insurance and choose to self insure. It's now worth £145,000 the capital return averaged over 13 years is £5,000 per year so the total return on investment is...23.75% income plus 25% capital...48.75% return on funds invested. Is that right?