BUY2LET.com is dedicated to residential property, and all our listing data includes gross property yield, which is calculated as a percentage of what is taken in rent per annum vs. the sale price of the property.
With this data a buyer can compare one property with another and indeed other forms of investment such as shares or bonds.
When sellers list their investment properties for sale on Buy2Let.com, they use our listing calculator algorithm and display them in 3 categories:
With an asking price, real gross yield and the rent the buyer will receive immediately from the tenant. This kind of investment will appeal to the most risk averse buyer.
With an asking price, estimated gross yield and estimated rental value. The property will be vacant and may offer scope for refurbishment/redevelopment. This option will appeal to the more adventurous buyer.
HOUSE OF MULTIPLE OCCUPATION (HMO)
With an asking price, real gross yield and the rent the buyer will receive immediately from the tenants if fully occupied or estimated yield and total rental value if part or completely vacant. This category includes student lets and frequently offers the highest gross annual returns, but with the likelihood of more management involvement for the buyer.
UK Residential investment property has proven to be a favoured investment vehicle for local and overseas buyers offering both the possibility of cash flow and capital growth from a tangible asset. However the BUY2LET.com yield calculation does not incorporate the effect of capital growth as it is our view that this should be treated as a bonus.
It is important when considering a property that a buyer establishes the costs of management and maintenance as they can reduce the annual yield.