It's a great time to invest in property. Rental Yields in the Midlands are around 4% to 8%. In addition there is capital growth currently running at 3% to 6%. This gives total gross yields of around 7% to 14% before tax. There has never been a better time to invest in property; few other investments can come close to match it.
Take out rent and legal protection insurance. It is quite rare the tenant stops paying the rent but they may lose their job and it does happen. If you have a mortgage you will still need to pay and you may need to get the tenant out then.
10) Building Cover
Make sure you take out landlords insurance on the buildings. If the tenant has a fire you need to be covered and an ordinary household policy will not cover you.
To calculate the yield on a property, divide the net rental income per annum by the total cost of purchase i.e.
|Yield = net rent divided by gross purchase price £7100÷£151,200 x 100 = 4.7%|
To minimise risk to clients and our staff we will carry out viewings under strict Covid-19 rules.
Priority will be given to buyers who are proceedable and who provide copies of their ID and proof of funds
Non proceedable buyers may be allowed to view if we are confident of their ability to proceed and the client agrees, some clients may only want priority viewers