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Selling properyy with sitting tenants
Comments
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getmore4less wrote: »Price for 10% gross yield will make it attractive as long as there are no major works due.
does 10% gross yield mean that the annual rental should be 10% of the price I sell the house for?
If that is the case, then I would need to sell the house for something around 60% of its likely value without tenants in.0 -
does 10% gross yield mean that the annual rental should be 10% of the price I sell the house for?
If that is the case, then I would need to sell the house for something around 60% of its likely value without tenants in.
You don't have to sell it for that but it's basically like this:
With reasonably simple investment a person can get 5% interest yield on the money in the bank.
So would a LL make more than that?0 -
does 10% gross yield mean that the annual rental should be 10% of the price I sell the house for?
If that is the case, then I would need to sell the house for something around 60% of its likely value without tenants in.
I don't look at houses below 9% yield, so of course not all houses are suitable BTL. What yield are you currently seeing?It may sometimes seem like I can't spell, I can, I just can't type0 -
Then you had really better evict the tenants and sell it on the open market - there is no way I would invest in a BTL based on these numbers.does 10% gross yield mean that the annual rental should be 10% of the price I sell the house for?
If that is the case, then I would need to sell the house for something around 60% of its likely value without tenants in.0 -
OP - make sure that you don't continue to use the words "sitting tenants" in discussions, or allow these words in any advertising by agent or anyone else because legally sitting tenants are there for life (if they choose) and are often paying rent well below market value, which is very different from selling a property already tenanted at the going rate where they could be made to leave/evicted if the landlord wants them to leave. Many investors would be put off by a sitting tenant, but would often view long standing good tenants on an AST who would like to stay as attractive.
All the best with your sale.0 -
does 10% gross yield mean that the annual rental should be 10% of the price I sell the house for?
If that is the case, then I would need to sell the house for something around 60% of its likely value without tenants in.
Then you will need to evict the tenants and sell with vacant possession.
TBH you owe your tenants no favours, no other LL would be as accommodating.0 -
does 10% gross yield mean that the annual rental should be 10% of the price I sell the house for?
If that is the case, then I would need to sell the house for something around 60% of its likely value without tenants in.
10% gross return on capital is a good guide to adding to a rental portfolio.
if you are running at 6% that going to limit your buyers to those getting in at the bottom end of yields.
If the place is in tiptop condition needing nothing spending there may be interest but tenanted for 10+ years what state is it in?
it maybe your rent has lagged the market so there is more for the next man(as they say).0 -
remember your yield based on cost will be much higher as you have 10+ years of HPI.
Even your exit(cash in hand after costs) gross yield will be higher than an investor(buying with costs).
For many there is the extra 3% upfront cost to factor into getting their return.0 -
getmore4less wrote: »it maybe your rent has lagged the market so there is more for the next man(as they say).
or it could just be in a part of the country where 6% is normal
the flat below me has just sold for 170K and there's an identical one on the estate up for rent at 800pm.
Such yields are normal 50 miles in all directions0 -
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