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

Cakeguts

Rental yield is the amount of rent compared to the cost of the property. Over what time period? I only ask because what at first glance can look like a low yield can actually be better than what looks like a higher yield if there are fewer voids. Every time a property becomes empty you lose money. I prefer a slightly lower yield and few voids. The longer the tenancy the better.

londonsw6

The House is Worth 2.2 million pounds and we owe a morgage of about 200 thousand pounds. Considering how much the property is worth, the rental income doesnt make it viable.

economic

cleary not viable. you need to decide whether you want to keep it orthe capital better invested elsewhere. you may want to keep it if you want to live there in the future.

londonsw6

Yeah, I don't plan on moving back there. We've had the house a long time, i was thinking maybe trying to sell it and buying a couple flats in battersea, less maintenance with flats.

economic

if i were you i would buy outside of london in other cities in good areas that yield 6%+. i think london has had its day in terms of fast capital appreacition and the rental yields are too low.

i wouldnt invest everything in one go, take it slow and learn. another option is to buy properties for development which could be quite profitable even in london. but hard to find.

property isnt everything and assuming you already own a home i would look into perhaps stocks or even your own business.

economic

or maybe you can convert the fulham home into a couple of flats, keep the freehold and sell them as leasehold? even keep one of them to let out?

londonsw6

Yeah, well its kind of crappy because the exchange rate right now, the dollar is strong and the pound is weak.

HappyMJ

londonsw6 wrote: »

Yeah, I don't plan on moving back there. We've had the house a long time, i was thinking maybe trying to sell it and buying a couple flats in battersea, less maintenance with flats.

Less maintenance yes...but they have service charges which pays for the maintenance. You don't get to shop around for the best deal you have to go with whoever the freeholder selects for repairs and maintenance. They take the money from the sinking fund and increase the service charges to cover future maintenance costs.

economic

depends how it is managed. if its a share of freehold then it could be managed by the owners themselves with the aim to keep the costs low.

slowpoke_rodriguez

londonsw6 wrote: »

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.

Obviously, you could improve your return by ditching the letting agent...