A man’s home is his castle. But it can also be his pension pot. His investment. His golden ticket. Buying a property to rent has become an incredibly popular way to generate extra income. To get the most from your investment it’s best to do your research, take emotion out of the equation and apply some sound strategic thinking. Easymove work with investors of all shapes and sizes from those dabbling with a single property to full-time property investors with extensive portfolios. No matter where you are on the spectrum, your success will be decided by the numbers.
The numbers game – how to come out on top.
No successful business starts with a blind leap of faith. The more precise you can be about your investment and expected returns, the more successful you will become. So do your maths before you jump in. In particular these critical sums.
To calculate the percentage gross rental yield on your investment
Total income per year ÷ value of the property x 100 = % gross yield
To calculate the percentage net yield
(total income – total costs) ÷ the value of the property x 100 = % net yield
To calculate annual running costs
Mortgage repayments + estimated refurb costs + vacant time (estimate 30 days per year) + service charge and ground rent (if the property is leasehold.)
Deciding rental value
Setting rent at the right level is the biggest call you need to make when bringing a property to the market. Go too high and you won’t find a tenant. Too low and you’ll be lumbered with a contract bringing in less money than you need. Easymove will help you find a figure that’s just right. We’ll take into account the property and the area to help you find that perfect figure. To devise a winning strategy for your buy-to-let plans, get in touch with the Easymove letting team.