What are some good areas to invest in with high rental yields.

londonsw6

We currently have a house in fulham that produces around a 2 percent rental yeilds, where are some good areas with rental yeilds.

Mr.Generous

Best return we get in NW is around 9%, Leigh and Wigan good areas.Cheap terrace bought and done up for £60k rented out for £450 month.

economic

for investment, buying for capital growth usually is just a punt and very risky unless you can find a reason fo the caital growth for a specific location (eg cross rail etc).

cashflow is king in property invesment and going for >5% yield makes sense, in fact i would say i would want minimum 6-7% yield. you can achieve that in some areas but i would consider liquidity - he ease of selling the property later a big factor as well as things like what kind of tenants, void periods etc.

HappyMJ

londonsw6 wrote: »

We currently have a house in fulham that produces around a 2 percent rental yeilds, where are some good areas with rental yeilds.

Up north....but you must not expect capital growth and you should expect very high maintenance expenses.

I live in the Midlands - Burton upon Trent - and we have a good balance with 5% gross rental yields across most property types and reasonable prospects of moderate capital growth.

Buying multiple cheaper properties and you have higher yields but they have higher costs so your net profit will be much lower than buying a 3 bedroom house with the same money with a slightly lower gross yield rather than two 1 bedroom flats for the same overall price. A family will stay much longer as tenants than a single person using the 1 bedroom as a stop gap measure....but you wouldn't allow a family to live in a 1 bed flat.

londonsw6

Yeah We Currently rent our Property For 5,200 pounds per month, but our morgage is 1k pounds. So the property is worth 2.2 million and we're getting about 4200 pounds per month minus the 10 percent rental fees, so are rental yield isnt good.

economic

you should sell the house and buy multiple properties with 6%+ yield.

londonsw6

I was thinking that, because the rental yield is so low. What are some areas in london you suggest.

economic

difficult to find something with high enough yield unless you go far out in london but even then im not so sure.

to put things in perspective i just sold my flat in kilburn which would yield around 4%. its not worth it even though i may get capital growth i just didnt want too much exposure to the property market as i am buying a place in highgate.

londonsw6

My moms is an american citizen and im a british citizen.

nusalukhrmom

good information...
thanks

londonsw6

we own it together it's in her name. She bought it in the 80s and we did a renovation recently.