YIELD ON INVESTMENT PROPERTY
The following is designed to assist you with working out the yield on your investment rental property
For ease, our workings are based on a cash buyer paying in British Pounds (GBP) for a rental property in the United Kingdom. However, if you are using a buy to let finance option such as a buy-to-let mortgage then you should calculate this into your final figures. When renting a property in the United Kingdom, it is seen as an income and would qualify as a taxable income. The rate of tax that you would have to pay would depend on whether this was your only means of income or if you have another stream of income as your main source.
Example of working out your property yield
This example is based on a property purchased for £95,000 cash with the rent per calendar month being £550 per calendar month (PCM). Select the rental pay frequency and our yield calculator will do the rest...
To work out a net yield, you would need to deduct any additional costs that you would accrue during the year whilst the property is rented. Examples of these types of deduction can be property management fees, property maintenance charges and ground rent charges.
These additional deductions can alter the final income between a Gross Yield and a Net Yield considerably so it is always advisable to speak with your Estate Agent prior to purchasing the property to ensure you have the complete figures available.
We hope this helps you work out your rental income and shows the benefits of renting property in the UK. If you would like more advice on renting your properties in Bexhill-On-Sea please call us on 01424 224242.
Semi-detached Bungalow vendor
We had not used Redwell Estate Agents previously, but having been on the market for over six months without any success, we asked if they could take on the sale of our property and they found us a buyer at the full asking price within a week, which was truly amazing. Throughout the selling process, Redwell have assisted us by liaising with all agents and solicitors involved in both the sale and purchase, resulting in a very smooth and rapid transaction. I would very much recommend their services.
Detached Bungalow Vendor
A very happy seller. As I was based 150 miles away the agent acted far and above what I anticipated which removed a number of logistical obstacles and continually kept me informed. Excellent in chasing up all relevant parties in the chain. Fees exactly as quoted with an added bonus as they included in a special bungalow promotion with a discount on the fees. Would definitely use again
2 Bed House Buyer
We had not booked to view this property; we were interested in the others being marketed by Redwell. Patrick obviously knew what we were looking for, suggested we view this property as he thought it would be right for us he was correct. Patrick is a pleasant, knowledgeable and professional person who gives a personal service to his clients, and does not take on more properties than he can manage, I would recommend his agency to other people.
Detached Bungalow Vendor
Both you and your team could not have done any more for Jean’s sale/move. Redwell Estates as a whole were totally professional from start to finish and had it not been for the building site next door, we all know the sale would have been quicker and easier! I believe you and your team went over and beyond what was required of you to which we as a family being so far from Jean at the time was most appreciated.