One Percent Rule

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.

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