Least return?

bigfreddiel

If you could buy a property outright with cash, what's the lowest return you would accept for your investment?

Cheers fj

slowpoke_rodriguez

bigfreddiel wrote: »

If you could buy a property outright with cash, what's the lowest return you would accept for your investment?

Cheers fj

Right now? Nothing would tempt me.Returns on the stock market are too good.And who needs the hassle of being a landlord?

iantojones40

Yeah but investing in the stock market requires a modicum of intelligence and the ability to carry out a bit of research... investing in property requires you to spend a few mornings watching the entirely factual Homes Under the Hammer.

G_M

iantojones40 wrote: »

Yeah but investing in the stock market requires a modicum of intelligence and the ability to carry out a bit of research... investing in property requires you to spend a few mornings watching the entirely factual Homes Under the Hammer.

Love it!

I always switch than on for a boost when I'm feeling a bit down.

Bossypants

iantojones40 wrote: »

Yeah but investing in the stock market requires a modicum of intelligence and the ability to carry out a bit of research... investing in property requires you to spend a few mornings watching the entirely factual Homes Under the Hammer.

Not everyone has the time or capacity to manage a portfolio properly and may not understand how these things work enough to trust an IM with their life savings. Also, with property the returns might not be great right now, but on the flip side, you are unlikely to ever lose *everything* even if you take a hit, whereas you legitimately might on the stock market (and with the bond market you could be waiting on the bankruptcy proceedings for years on end). People like security.

I'm not advocating either (I personally have both), just saying that people make decisions for reasons beyond being lazy and stupid.

bigfreddiel

Thanks everyone, and I would tend to agree with all those comments.

Renting, hassle, late payments, nightmare tenants, so generally I wouldn't consider it, but.......

And here comes the reason, the property is one I viewed four or five years ago, my wife really liked it, I wasn't so sure. Four years on circumstances have changed, I've done well with various investments, pensions have kicked in including sp, and this purchase still leaves me with a cash and ISA of about £350k.

I reckon on a rental yield of between 3-4%. ISA portfolio is about the same, but all reinvested. My pension income means I would be reinvesting the rental income.

Final point this property I may buy would suit us as its on a level plot, our current house has steep steps to the front door so in our old age won't be ideal, this new one is ideal.

My plan is to view it, put in a lowish offer, if it's turned down just wait and see. If it goes to someone else it's no big deal for me, if it hangs on in the market I might get s bargain.

Just a few thoughts.

Cheers fj

Thrugelmir

bigfreddiel wrote: »

I reckon on a rental yield of between 3-4%.

Far too low to even consider.

slowpoke_rodriguez

bigfreddiel wrote: »

Thanks everyone, and I would tend to agree with all those comments.

Renting, hassle, late payments, nightmare tenants, so generally I wouldn't consider it, but.......

And here comes the reason, the property is one I viewed four or five years ago, my wife really liked it, I wasn't so sure. Four years on circumstances have changed, I've done well with various investments, pensions have kicked in including sp, and this purchase still leaves me with a cash and ISA of about £350k.

I reckon on a rental yield of between 3-4%. ISA portfolio is about the same, but all reinvested. My pension income means I would be reinvesting the rental income.

Final point this property I may buy would suit us as its on a level plot, our current house has steep steps to the front door so in our old age won't be ideal, this new one is ideal.

My plan is to view it, put in a lowish offer, if it's turned down just wait and see. If it goes to someone else it's no big deal for me, if it hangs on in the market I might get s bargain.

Just a few thoughts.

Cheers fj

If you must do it, why not get a mortgage on it, stay invested, and take advantage of the current low mortgage rates?
Though as Thrugelmir says, 3-4% yield is a joke, unless prices in that area are galloping...

xylophone

If you really like this property and envisage living in it yourself, why not sell your current home, buy the favoured property and renovate/adapt/future proof it to make it the proverbial " house I'm not leaving until carried out etc....":)

silvercar

bigfreddiel wrote: »

If you could buy a property outright with cash, what's the lowest return you would accept for your investment?

Cheers fj

Depends on how much capital growth you predict for the length of time you intend holding it.