My accountant suggested a 'yield plus capital growth' strategy. What's a balanced approach to determining a 'good' rental yield in a UK area with strong capital appreciation potential, where the yield might be lower but total returns are higher?
Quick Answer
Balancing lower rental yields in high capital growth areas (typically 4-6% gross) with long-term capital appreciation requires rigorous financial modelling, factoring in higher SDLT at 5% (from April 2025) and Section 24 impacts to project true total returns.
About This Topic
Balance rental yield and capital growth in UK property. Learn to calculate true ROI, considering 5% SDLT from April 2025, Section 24, and 4-6% gross yields in growth areas. Strategic investing.
This question is part of our Buying Your First Property category, providing expert guidance on UK property investment.
Expert Guidance from Steven Potter
Steven Potter is a UK property investment coach with a £1.5M portfolio and over 5 years of hands-on experience. He has helped over 1,000 students achieve their property investment goals through practical, ethical strategies.
Ready to Take Action?
Get personalised property investment coaching with Steven Potter's Property Freedom Framework.
Learn about the Property Freedom Framework