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Property Yields


Jamus
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In 1993 it was possible to buy a 3-bed ex-council flat in Fulham and West Ken for £65k - less if you went to auction.

 

That would have yielded as much as £80-100 per room per week - say £1000 per month, or £12k per year, comfortably.

 

That's about a 20% yield , though an ex-council flat would not have given you the same capital growth as a non-ex-council.

 

I don't think that's an unreasonable target now. 18months ago it seemed impossible.

 

 

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  • 3 weeks later...

In 2000-2001 you could have purchased a 3 bedroom house in Stratford for under £100k that returned £900 - £1000 a month - more if let as rooms

 

If you had purchased in Plaistow/slightly lesser areas you could have potentially brought the purchase cost down to £80k with similar rental income.

 

Property prices round there were going up @ 10-12% PA, rents were/are fairly static.

 

I purchased in that region. Rember at time two teachers (or Junior Doctors or one of each/whatever similar Gov profession) on TV complaining they could not afford to purchase. They were doing a commute that would have been very similar from there. Jubilee line had just been built.

 

Yield I think was about 12%, I know some people who did very well from that. Provided they did not gear up excessively and used rents to pay off some mortgage they should still be ok through this downturn

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