I’ve just been reading about a property investment rule – the ‘One Percent Rule’.
http://affordanything.com/2012/01/25/income-property/
The idea is that the monthly rent has to be at least equal to 1% of the property value.
So a £100,000 house would have to rent for £1000 per month – which would give a gross yield of 12%.
Hhmmmmmm, not in my area they wouldn’t. I would be lucky to get a 6% yield at the moment with current rental rates. It is a nice idea tho.