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The Property Podcast

ASK126: What's a realistic yield for today's investor? PLUS: Would you buy a house with bitcoin?

The Property Podcast

Rob Bence & Rob Dix

Investing, Education, Business News, News, Business

4.82K Ratings

🗓️ 6 March 2018

⏱️ 7 minutes

🧾️ Download transcript

Summary

On this week's Ask Rob & Rob podcast....

Transcript

Click on a timestamp to play from that location

0:00.0

Hi, I'm Rob. And I'm Rob. And this is Ask Rob and Rob.

0:04.0

It's welcome, welcome, welcome, thank you for joining us and Ask Rob and Rob. You know the drill. You ask a question. We answer it. It's dead simple, but we keep on doing it because it works. That's why we do this every Tuesday. We can only keep doing it every Tuesday though if you send your questions in.

0:24.7

We've got two crackers for today but before we hear those Rob run us through the all important numbers.

0:29.2

Yes if you want to call in and leave us your question it it's 013- 808,000.35, or you can do it via a website on your phone

0:37.8

or your desktop, and the link you need for that is the Property Hub.net

0:41.8

forward slash ask. And that's exactly what guy has done and he's got a question about yields

0:47.1

Hi Robin Rob this is Guy from Wakefield I apologize because I only got to discover you guys in the last couple of months so I'm still

0:53.9

doing a lot of catching up and apologies if this question has already been asked and

0:57.7

answered but I just wonder what you guys consider is a high yield for rent. I've got a few properties in Yorkshire and I'm

1:05.8

getting about five or six percent yield. I'm in the market to buy another one or two and I just

1:11.2

wondered is higher than five or six percent still achievable in

1:15.2

today's climate or what I should perhaps consider for my next purchase to get a

1:20.0

higher yield. Any advice? Amazing. Thanks very much. Enjoy the podcast and

1:24.6

uh, cheers. Okay, thank you guy. Not an uncommon question at all. Very hard for people

1:29.7

to figure out what's achievable, I think. The first thing to do is to work out what we're talking

1:34.2

about. So whenever anyone is talking to you about yield, make sure first of all you're both

1:38.4

talking about the same thing. So what it sounds like is that Guy is talking about gross yield.

1:43.6

So that is the annual rent divided by the purchase price.

1:46.6

There's also net yield, there's also ROI.

1:48.6

ROI, really, as we've said before, is the all important measure.

1:51.7

That's the one that matters. but gross yield is a decent first

1:54.7

filter for counting a property in or out seeing if it merits further investigation. So now I've set it up, I'm going to hand over to you for the

...

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