Investing for Buy To Let to increase your ROI
The term “buy-to-let” simply means the purchase and ownership of a property through normal purchase procedures and when completed, the investor will rent this property out
The demand for rental accommodation is increasing and this creates the perfect environment for buy-to-let investments with also increased rental rates and strengthened rental yields for investors in the right locations.
Rental income in form of annual yields varies among nations and locations but a general rule today the yield the buyer can expect from a rental apartment is somewhere between 3-6% per year
Here is a Gross Rental Yield calculation example:
- Purchase Real Estate Price: 150,000€
- Rent per month: 600€
The gross rental yield is the annual rental income:
(600€ x 12) = 7200€ / 150,000€ x 100 = 4,8% Annual Gross Rental Yield
Compare the annual gross rental yield from an investment in real estate with the interest rate from any bank today and you will realize the difference
