How to Achieve an 11% Yield With No Hands on Involvement22 Oct 2019
One of our overseas investors is 18 months into her buy to let property journey and I thought it would be great to have a look back over the figures to see what’s happening for her. She asked us to source her a property, refurb it and manage it, and here’s how it looks now. It was a low-value property that needed a refurb but it’s generating her a fab return now!
Purchase price £37,000 (yep!)
Refurbishment cost and fees £10,000
Total Investment £47,000
The property was bought in April/May 2018, and after works (arranged and overseen by us) it started to generate rent in July of £475 per month. It’s a basic property but its affordable rent and in a good location for a single person to access the city.
It has generated rent of £7,000 in the past 15 months or so, with 1 change of tenancy. Management fees, and other costs around £3,000.
So all in this landlord has achieved a yield of over 11%, with a fabulous return on her investment which is now probably worth around £55k and generating her a clear £425 per month income. Not bad!