Rents will rise or fall in respect of the market. Current yields on residential are not that brilliant as far as I am aware but I don't follow the trends. The thing to remember is the yield is relative to the capital value, so if capital value is rising faster than rental yield the yield is going down as a percentage. Most people only look at the price they paid versus the rent and also ignore inflation. When I looked last at it the yield on flats was much better than houses, with houses at or around 5% at best.
Only if the market will stand it. If it will not then it reduces the margin. There is a tiny bit of truth in that if all landlords put up prices the market price goes up, but even then people just drop out the rental market to buy or to live back home with mummy.
This myth is trotted out again and again to pretend that what is going to be paid by the investor will actually be paid by people "that can ill afford it". But the truth is if you can't afford it you don't pay it. If no one can afford it the price comes down as places stand empty. There is commercial property empty all round the country for that reason. One option with residential is to go to HMO but there are capital costs in that with the conversion of course.
People like property because they think they understand it, but there are much better investments round if you look.
Only if the market will stand it. If it will not then it reduces the margin. There is a tiny bit of truth in that if all landlords put up prices the market price goes up, but even then people just drop out the rental market to buy or to live back home with mummy.
This myth is trotted out again and again to pretend that what is going to be paid by the investor will actually be paid by people "that can ill afford it". But the truth is if you can't afford it you don't pay it. If no one can afford it the price comes down as places stand empty. There is commercial property empty all round the country for that reason. One option with residential is to go to HMO but there are capital costs in that with the conversion of course.
People like property because they think they understand it, but there are much better investments round if you look.
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