ASK264: Does rental income or capital growth give the biggest gains? PLUS: What’s the minimum yield I should accept?

We’ve got another two great property questions on Ask Rob & Rob this week.

The first question this week is from Argent.

Argent wants to know where property investors can make the biggest gains. He knows Rob & Rob tend to focus on capital growth, but he thinks it’s more the income that gives the biggest gain, as this is the cash that hits your bank account each month. 

Listen as Rob D takes us on a mini history lesson while drawing on his own personal experience. Yes, you need to have a bit of faith for capital growth but today Rob explains why both are equally as important. 

You can also deliberately tilt your portfolio in the favour of one or the other. How? Listen to find out. 

The second question comes from Daniel.

Daniel is a long-time Property Podcast listener and he’s looking to get his first property. 

He’d been focusing on the ‘ideal yields’ of between 8-10% but when he’s running the numbers, he’s finding the best he can get is 6% or lower. He’s wondering if he bought at 6% whether it’d be a huge mistake. 

Rob B takes the lead with this one (as Daniel specifically used Liverpool as an example). Listen as he talks Daniel through what to look for in his next deal and how it’d affect yields. He also explains how to focus on location and consider the pros and cons of desirable vs less desirable places. 

The difference of an extra % or two on the yield could be minimal in the short-term but a winner in the long-term.

Do you have a buy to let or property investment related question for Rob & Rob? You could feature on the next episode by giving us a call on 013 808 00035 and leaving a message with your name and question (normal UK call rates apply). 

 

Or if you prefer, click here to leave a recording via your computer instead.

The next question on Ask Rob & Rob could be yours. 

Have you joined us over on the Property Hub Forum yet? Our online community is friendly, informative, and the members are waiting to welcome you with open arms. So get yourself over and introduce yourself.

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