A strong asking price is not the same as a strong investment. Before you book a viewing, run the numbers: purchase price, stamp duty, works, voids, management and other running costs.
Build the total investment figure
Add purchase price, estimated stamp duty (higher rates often apply to additional dwellings), renovation, legal fees and other purchase costs. That all-in figure is what your yield should be measured against — not the headline price alone.
Gross vs net yield
- Gross yield — annual rent (after void months) ÷ total investment.
- Net yield — net income after management, insurance, maintenance and other expenses ÷ total investment.
Many investors look for roughly 5%+ net, but area, risk and capital growth strategy all matter. Treat any rating as a guide, not advice.
Use the free deal analyzer
The property deal analyzer updates totals, yields and monthly cash flow as you type, with England & Northern Ireland SDLT estimates including the additional-dwelling surcharge. Always confirm stamp duty with your conveyancer.