Welcome to week 7 of the Blog Posts.
If you are looking at investing in a property, you are probably looking for one of two things (or a combination of the two): A strong rental yield or capital appreciation.
What is Rental Yield?
Put simply, rental yield is the return you are making on your property purchase.
What is Capital Appreciation?
Again, simply put this is the amount your property will increase over a period of time.
The majority of landlords will look for a combination of these two factors when looking to purchase a property. The rental yield and capital appreciation will vary on the property itself and area it is located in. Couple with how the rental market performs in that particular area. In the Stockport area, you want to be looking at obtaining a rental yield of 5-6% with capital appreciation still a factor as you look into the future with your property portfolio.
Some landlords will look to invest in properties with higher capital appreciation so they can pull funds out of the property in the future and re-invest this back into more properties. Others are more focused on the rental yield, with a strong but steady rental income to ensure their properties are working for them in the market.
For more advice on which areas and types of properties to invest in, dependant on your individual investment needs, please reach out to myself on either liamfoster@julianwadden.co.uk or 07384 810881.
Buy to let pick of the week
An example of a property with excellent rental yield, is this one/two bedroom flat advertised in Victoria Mill, Reddish. Click here to take a look at the Rightmove advert.
Marketed with a guide price of £130,000. The property benefits from an allocated parking space and concierge in the building. We have a strong track record of securing tenants in this building. I would expect to achieve a rental income of £775-£800 for the property, resulting in a yield of 7.3%.
Give the marketing agent a call direct if you are interested in viewing this property and give myself a call on 07384 810881 to discuss the rental prospects of this in further detail along with advice and assistance on the BTL market.
Many thanks,
Liam Foster – Lettings & Investment Manager – Stockport
