ASK275: Has this area’s capital growth peaked? PLUS: Am I calculating yield correctly?

It’s Tuesday, so that can only mean that Rob & Rob are back to answer two more listener, property related, questions.  Our first question this week comes from Lee.  Lee has been listening to the podcast for over a year now and is doing an immense amount of research into where he should invest.  Naturally he’s been listening to Rob & Rob and eyeing up Manchester and Leeds, but he’s now turning his attention to Nottingham for the affordability aspect. However he’s having doubts after seeing that in two years, a council estate that was priced at £90,000 is now priced at £130,000.  So essentially, Lee wants to know if this kind of growth can be expected to continue, or do certain areas experience capital growth which then moves onto another area? The second question this week comes from Nick who’s having issues calculating yields.  He’s currently in the process of purchasing his seventh property, the last three of which have been during lockdown - you go Nick! He’s been told that if you achieve a yield between 6-8% then that’s pretty good.  But when he’s been working the numbers out based on the 30% deposit he put down, he’s getting a yield that’s much closer to 20%.  So what’s he doing wrong? What’s the right way to calculate a rental yield? Tune in to find out.   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. See omnystudio.com/listener for privacy information.