As a first-time investor, how does a 'good' rental yield for a new-build apartment differ from an older property in the same area, considering potential maintenance costs and service charges, and what's a reasonable minimum to aim for to cover costs?
Quick Answer
New-build apartments typically offer lower headline rental yields than older properties due to higher service charges, yet feature reduced maintenance. Aim for at least a 7% gross yield to cover costs, factoring in today's 4.75% base rate.
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Understand rental yield differences between new-builds and older properties in the UK. Learn what to aim for to cover costs and common pitfalls for first-time investors.
This question is part of our Buying Your First Property category, providing expert guidance on UK property investment.
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