# What Yield are You Getting?



## pod (8 Oct 2004)

As a percentage of the *current* market value of your (residential) investment property approximately what percentage yield are you getting at the moment?


----------



## EAMONN66 (8 Oct 2004)

5.3% - dublin


----------



## Jose (8 Oct 2004)

4.1% Cork


----------



## MAC (9 Oct 2004)

*Yield*

3.8% of current value! That's before costs - unsustainable..... new entrants beware !

MAC


----------



## Advisor (9 Oct 2004)

*yield*

Carrick on Shannon tax incentive apartment - 0% yield as the ****** thing is empty, like many others there, since it was built.   Beware !


----------



## scargill (12 Oct 2004)

*yield*

5% - Naas


----------



## Martin (12 Oct 2004)

*Yield*

Vast differences here.

Presume the worst yields are in relation to properties bought in the last 2-3 years.


----------



## MAC (12 Oct 2004)

*Bought in the last 2-3 years?*

Well not in my case so the low yield does not matter that much...... the question was I think based on current values.


MAC


----------



## pod (12 Oct 2004)

*Yield*

Thanks for all the replies.  If anyone else has any please post them.

Yes, yield based on current property value.


----------



## Shaner (13 Oct 2004)

*yields*

5.7% in large midlands town.

I wonder is it true to say yields are generally better outside the capital and other cities?


----------



## booboo (13 Oct 2004)

*Dublin*

Swords - 8% after unrecoverable costs


----------



## blahdeblah (13 Oct 2004)

*2.9% D6 apartment*

Dublin 6.

Current Market Value: €400k (apartment, according to two estimates from Estate Agents)

Monthly rent: €1100 (broadly similar to what's on DAFT)

Occupancy: 50 weeks per year

Annual Costs:  ~€1,000

Yield = 2.9%

Looks like I should be trying to increase my rent to around €1,550 to get a 4.1% but this won't get tenants.


----------



## Cashman (13 Oct 2004)

*Donegal Yield*

4.30%


----------



## San Martino (13 Oct 2004)

*Dublin Gross Yields*

Dublin 2 - apartment 4.7%
Dublin 9 - house 4.4%

I'm strongly considering the sale of the house - if (and when)house prices stop rising I reckon there will be a lot of for sale signs around the place!.


----------



## Fitzroy (13 Oct 2004)

*!*

And we all know what happens to the price of any commodity when there's a market flood.

Take pre-emptive action now, and sell, sell, sell...!


----------



## Homelet (13 Oct 2004)

*yield*

Dublin 1 - 1 Bed apt

3.75%


----------



## mags (13 Oct 2004)

*yield*

how do you work out yield


----------



## EAMONN66 (13 Oct 2004)

*Re: yield*

annual rent / current value


----------



## Aphrodite (13 Oct 2004)

*dOWN  dOWN dOWN*

High yields are on the way and  I'm not talkin' higher  rents if you get what I'm sayin'


----------



## Tom (15 Oct 2004)

*High Yields*

San Martino, 4.7% yield for an apartment in Dublin 2?  I find that hard to believe!!  In future, can people show the rent and the current market value they are using to calculate the yield?


----------



## MAC (15 Oct 2004)

*8% in Swords?*

I would be a lot more surprised about the Swords number. Doe this mean that for a house costing 300k in Swords someone is getting 2.5k per month.... I don't think so!

MAC


----------



## EAMONN66 (15 Oct 2004)

*Re: 8% in Swords?*

some people might be using  their mortgage balance / original price paid to calculate the figure instead of current market value. 
current market value only matters if you are buying or selling


----------



## Protocol (15 Oct 2004)

*gross rental yields*

You should use the current market value to estimate the return or yield on your asset.

This allows you to compare the return to deposit a/c, etc.

House in Sligo = 250k

Rent = 800pm, or 9.6k pa.

That's less than 4%, before maintenance or tax.


----------



## Marz (15 Oct 2004)

*5.1%*

I get 5.1% with my savings account, and no maintenance expenses to pay.


----------



## Shaner (15 Oct 2004)

*yields*

Im sure you get that return Martz.   

However........... 

I get a similar or slightly higher return on my rental property worth €150,000.  I saw property as my only option for investment purposes because I only had the deposit in savings.  the rest of money was raised via mortgage.  

Even now in the era of low returns, I think there are few better options to property (obviously I'm talkin of property that has got potential and outside the large cities where yields are lower).  I have 25 year mortgage, rent more than covers repayments and i appear to have a reliable tennent who intents to stay long term. 

Would be glad to hear of  better suggestions for accumulating wealth when one has little savings............


----------



## dubinamerica (15 Oct 2004)

*.*

Don't think it's as straightforward as the calc suggest .. what about tax matters ? So for instance in the following you'd have Person A with two houses each worth 200000 and being rented for 1000 p.m. -> yield suggests 6% but the real yield is less because tax is due.. What about a section 23 owner , same situation but one of the houses is s23 so no tax to be paid.. Also - the timing of the payments will impact yield I believe and the regularity.. e.g. 12000 paid once at the start of the year should be worth more than 1000 paid p.m.... I need to go back to the maths books for this one ..


----------



## cerberus (15 Oct 2004)

*tv prog*

The way they were calculating was to knock the last 2 zeroes from the purchase price to get monthly rental
35000     350/month
100000   1000/month

kind of leaves us a bit out then, a 300,000 propoerty should produce a monthly rental of 3000


----------



## Sky (15 Oct 2004)

*Yields*

That perfectly demonstrates how ludicrously overpriced property here is.

Once property values have fallen back to sensible levels it will bring yields back into line.


----------



## San Martino (17 Oct 2004)

*Re: Yields - answer to Tom*

Hi Tom,

What is a 2-bed city centre appartment worth?. I'm not sure but I reckoned a little over €300k - based on a monthly rent of €1200 and full occupancy this gives a gross yield of 4.7%. Obviously, costs reduce that yield, in particluar the annual maintenance charge of around €1,600!.

Cheers.


----------



## Sikhim (17 Oct 2004)

*5.1 on a savings account??*

Hi Martz, where do you get this?

regards
Sikhim


----------



## Van Nistilrooy (17 Oct 2004)

*WHAT YIELD ARE YOU GETTING*

Is yield overstated?

I bought a site with OPP for 40k 3 years ago. Got FPP last year.  It now worth 110k.  Yield is nil.

40K loan on site is at 2.95% rate.   

Its likely to rise to 150k by 2007.  Is this a bad investment because the yield is NIL.  Wouldnt have thought so.


----------



## Marz (17 Oct 2004)

*5.1 on a savings account??*

Hi Sikhim - I get 5.1% here

[broken link removed]


----------



## Sikhim (17 Oct 2004)

*I should have known ...*

thanks for reply Marz (and apologies for mis-spelling your user name!)

 but should have realised you were talking about the UK and only available to UK resident, plus currency exposure for investors from a euro zone

I was recently quoted 1.20% by Bank of Ireland for a savings account

regards
Sikhim


----------



## paddyirishman (17 Oct 2004)

*yields*

annual rent / current value ?

To collect the actual Yield - is tax taken into account when calculating the Yield ? I guess the property management fee is also deducted from the annual income.....


----------



## Marz (17 Oct 2004)

*%*

Hi Sikhim - 

I'm in Northern Ireland, so that's why I can have an account with them.


----------



## Dan The Man (20 Oct 2004)

*Van Nistilrooy*

On that property with OPP you have made a very good investment.

There are 2 ways to gain from property
Capital Appreciation
Rental Yield

Most times you will settle for one or the other, you have got max appreciation with no yield.

Most people rely on a yield for repayment of mortgage.

If I had a lump sum I would do what you had done.

Was the OPP difficult to get?


----------

