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I do BTL in the UK. For our market, look at 1% of the mortgage. So, if you put down a 50% deposit on a £150k place, you'd want rent of £750. Actually, it dep
by edent 12y ago
I do BTL in the UK. For our market, look at 1% of the mortgage. So, if you put down a 50% deposit on a £150k place, you'd want rent of £750.
Actually, it depends very much on your circumstances, attitude to risk, how much you're happy to pay in agency fees etc.
Also, in the UK, we don't tend to have 30 year mortgages, which makes predicting a stable price very tricky.
The UK also has vastly different tax rates - and a changing rental culture - which may also affect the price you want to charge.
- breischl 12y agoHuh, that seems like an odd rule-of-thumb. That would guide you to put more money into deals with lower absolute returns, which would lead you to really low ROIs. eg, if you were willing to put down 66% on that property (£100k down, £50k mortgaged), then a £500 rent would be ok. Or am I reading that wrong? I am completely ignorant about UK real estate, so I might be missing something obvious.
- edent 12y agoIt's about the minimum you need in order to cover your costs & start making an ROI. Obviously if you can charge more, you'll start making more.
- abrugsch 12y agoOK, those numbers are a little more favourable. Good to know if i'm ever in that position again.